FedEx reports improved Q3 results
Higher package yields, increased shipment volumes and cost savings boosted third-quarter operating results, while the company advanced its transformation through the Freight spin-off and Supply Chain sale.
FedEx has announced its consolidated financial results for the quarter ended September 30, with adjusted figures excluding specified items. Consolidated operating results improved in the third quarter, supported by higher package base yields, increased shipment volumes, and continued structural cost savings from business optimisation initiatives.
FedEx reported revenue of $22.9 billion in the third quarter of 2026, up from $20.4 billion in the same period last year. Reported operating income increased to $1.07 billion from $0.97 billion, while adjusted operating income rose to $1.20 billion from $1.03 billion. Adjusted operating margin improved to 5.3% from 5.1%. Adjusted net income climbed to $0.90 billion from $690 million, and adjusted diluted earnings per share increased to $3.74 from $2.93. However, reported net income declined to $0.29 billion from $0.65 billion, while reported diluted EPS fell to $1.21 from $2.73, highlighting the impact of specified adjustment items on the company’s reported results.
Raj Subramaniam, FedEx president and chief executive officer, said, “As our strong operating results and adjusted free cash flow demonstrate, FedEx is winning across high-value market segments while we optimise our network, driving an increase to our full-year outlook. As we advance our transformation, we remain committed to disciplined operational execution to reduce our cost-to-serve while focusing on profitable growth. We have the right strategy in place to continue to be the world’s premier B2B parcel and air freight provider, leverage our digital insights to unlock new markets, and use disciplined capital allocation to create additional stockholder value.”
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