01—Abstract
Summary
Summary of the 8-K filed October 28, 2026. Cited figures are marked; the original filing is the authoritative source.
FedEx Corporation (FDX) reported strong financial results for the fiscal quarter ended September 30, 2026, exceeding investor expectations.
The company highlighted robust revenue growth driven by increased package yields and volumes across its U.S. Domestic and International segments. Significant strategic moves, including the completion of the FedEx Freight spin-off and the sale of FedEx Supply Chain, are reshaping the company's portfolio and contributing to its financial performance. Adjusted diluted EPS saw a substantial increase, bolstered by operational efficiencies and disciplined cost management.
FedEx also announced a positive revision to its full-year calendar 2026 earnings outlook, reflecting confidence in its ongoing transformation and strategic execution. The company continued its commitment to shareholder returns by completing $2 billiona in share repurchases during the quarter. Investors should note the impact of certain one-time items, such as the loss on the retained investment in FedEx Freight, which are detailed in the adjusted figures.
02—Key points
Key Highlights
- Revenue increased 12% year-over-year to $22.9 billion for the quarter ended September 30, 2026.
- Adjusted diluted EPS significantly improved to $3.74, compared to $2.93 in the prior year's comparable quarter.
- Completed the spin-off of FedEx Freight and the sale of FedEx Supply Chain, demonstrating a strategic focus on core operations and portfolio simplification.
- Raised the full-year calendar 2026 adjusted diluted EPS outlook to a range of $18.00 to $18.60.
- Returned $2 billion to shareholders through share repurchases in the June-September period.
- Express U.S. Domestic segment operating income increased due to higher yields and volumes, partially offset by increased costs.
- Express International segment operating results also improved, driven by higher yields and increased freight weight.
03—Questions
Frequently Asked Questions
What were the main drivers of FedEx's revenue growth in the third quarter?
Revenue growth was primarily driven by increased package base yields and higher package volumes across both the Express U.S. Domestic and Express International segments. Continued structural cost reductions from business optimization initiatives also contributed to overall performance.
How did the FedEx Freight spin-off and FedEx Supply Chain sale impact the financial results?
The FedEx Freight spin-off resulted in a recognized loss of $1.2 billion on the retained investment during the quarter, which is detailed in the adjusted non-GAAP figures. The sale of FedEx Supply Chain for approximately $1.4 billion is another step in portfolio simplification. These transactions allow FedEx to focus resources on core areas and create long-term value.
What is the updated full-year earnings outlook for calendar 2026?
FedEx has raised its full-year calendar 2026 outlook. The company now forecasts adjusted diluted EPS to be in the range of $18.00 to $18.60, an increase from its previous forecast. This revised outlook reflects the company's confidence in its strategic execution and performance.
How is FedEx returning capital to shareholders?
FedEx demonstrated its commitment to shareholder returns by completing $2.0 billion in stock repurchases during the June-September period. The company has $4.3 billion remaining under its 2026 stock repurchase authorization and intends to be opportunistic with future repurchases.
04—Continue