FedEx lifts 2026 outlook as Q3 revenue hits $22.9B

FedEx said higher package yields, greater package volume and structural cost cuts lifted its third-quarter results, partly offset by higher purchased transportation rates, wages and the effects of trade policy. The company reported adjusted operating income of $1.20 billion, a 5.3% margin, up from $1.03 billion a year earlier. Adjusted diluted earnings per share were $3.74, versus $2.93.

FedEx’s reported (GAAP) earnings per share were $1.21, held down by a $5.18 per-share loss on its stake in FedEx Freight. The loss was partly offset by a gain on debt extinguishment.

Adjusted operating income at Express U.S. Domestic rose to $972 million, a 6.6% margin, from $905 million, on better yields, volume, service mix and savings. At Express International, it rose to $297 million, a 3.9% margin, from $196 million, on higher base yields and export volume.

FedEx Freight was spun off on June 1, 2026. FedEx kept a 19.9% stake, valued at $3.3 billion at quarter-end, and booked a $1.2 billion loss on it. It also received a dividend of about $4.1 billion from Freight. FedEx used that and cash on hand to tender for about $4.9 billion of debt, producing a $627 million pre-tax adjusted gain. The sale of FedEx Supply Chain to CMA CGM, for about $1.4 billion, closed on Oct. 1. The company changed its fiscal year-end from May 31 to Dec. 31.

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