# FedEx (FDX) Q3 2026 earnings

Results filed 2026-10-28 for the quarter ended 2026-09-30. Source page: https://earnings.opennash.com/companies/fdx/2026-q3/
Press release and exhibits: https://www.sec.gov/Archives/edgar/data/1048911/000104891126000128/0001048911-26-000128-index.htm
> Summaries and transcripts are machine-generated and can contain errors.

## In brief

FedEx reported third-quarter revenue of $22.9 billion, diluted EPS of $1.21 and adjusted diluted EPS of $3.74, and raised its calendar 2026 earnings outlook.

FedEx grew revenue 12% to $22.9 billion in the quarter ended September 30, 2026. Higher package prices and volumes, plus cost savings from its transformation program, lifted operating income to $1.07 billion. GAAP diluted EPS was $1.21, held down by a $1.2 billion loss on the 19.9% stake kept in FedEx Freight after the spin-off. Adjusted EPS was $3.74, which excludes that loss and a gain on retiring debt. FedEx also repurchased $2.0 billion of stock.
FedEx raised its calendar 2026 adjusted EPS outlook to $18.00 to $18.60 and expects revenue growth of about 12%. Parcel rates rise an average of 5.9% on January 4, 2027. The main tension is cost: purchased transportation, wages and fuel are rising faster than revenue, and global trade policy continues to weigh. International package volume fell 4%, and $2.7 billion of tariff refunds held for customers inflates the cash balance.

## Key numbers

| Metric | Value | Change | Basis |
| --- | --- | --- | --- |
| Revenue | $22.9 billion | up 12% from a year ago | GAAP |
| Operating income | $1.07 billion | up 10% from a year ago | GAAP |
| Operating margin | 4.7% | vs 4.8% a year ago | GAAP |
| Net income (continuing operations) | $0.29 billion | vs $0.65 billion a year ago | GAAP |
| Diluted EPS (continuing operations) | $1.21 | vs $2.73 a year ago | GAAP |
| Adjusted diluted EPS (continuing operations) | $3.74 | vs $2.93 a year ago | non-GAAP |
| Cash provided by operating activities (nine months) | 7,448 | vs 6,638 in the prior-year nine months | GAAP |

## Segments and operating metrics

| Name | Value | Change |
| --- | --- | --- |
| Express U.S. Domestic revenue | $14,710 | up 10% |
| Express International revenue | 7,465 | up 17% |
| Express U.S. Domestic operating income | $946 | up 7% |
| Express International operating income | $220 | up 15% |
| U.S. domestic composite package yield | $15.32 | up 7% |
| Total U.S. domestic average daily package volume | 14,370 | up 2% |
| International composite package yield | $30.46 | up 17% |
| Total International average daily package volume | 2,828 | down 4% |

## Outlook

| Metric | Period | Outlook |
| --- | --- | --- |
| Revenue growth | calendar year 2026 | ~12% YoY |
| Diluted EPS (continuing operations, GAAP) | calendar year 2026 | $35.30 to $35.90 |
| Adjusted diluted EPS (continuing operations) | calendar year 2026 | $18.00 to $18.60 |
| Effective tax rate | calendar year 2026 | ~22.5% |
| Capital spending | calendar year 2026 | $3.9 billion |
| Pension contributions | calendar year 2026 | $475 million |
| Average parcel shipping rate increase | effective January 4, 2027 | 5.9% |

## Key takeaways

1. **Revenue grew 12% on higher yields** Revenue was $22.9 billion, up from $20.4 billion. U.S. domestic composite yield rose 7% and International composite package yield rose 17%.
2. **GAAP EPS is far below adjusted EPS** Diluted EPS was $1.21 versus adjusted $3.74. The gap comes mainly from a $1.2 billion loss on the retained FedEx Freight stake, partly offset by a gain on extinguishment of debt.
3. **Outlook raised for calendar 2026** Adjusted diluted EPS is now forecast at $18.00 to $18.60, up from $16.90 to $18.10. Revenue growth is now about 12%, from about 11%, and the tax rate is about 22.5%.
4. **Costs are rising faster than revenue** Purchased transportation rose 19% and fuel rose 64%. U.S. Domestic operating margin slipped to 6.4% from 6.6%.
5. **Portfolio reshaped and capital returned** FedEx completed the FedEx Freight spin-off on June 1, 2026 and sold FedEx Supply Chain for approximately $1.4 billion. It repurchased $2.0 billion of stock, with $4.3 billion remaining under authorization.

## Questions

**What were FedEx's headline results for the quarter ended September 30, 2026?** Revenue was $22.9 billion, up 12%, with GAAP operating income of $1.07 billion and GAAP diluted EPS of $1.21. Adjusted diluted EPS was $3.74 versus $2.93 a year earlier.
**Why is GAAP EPS so much lower than adjusted EPS?** GAAP results include a $1.2 billion loss on the 19.9% FedEx Freight stake, worth $5.18 per share. Adjusted results exclude it, along with a $1.97 per-share gain on extinguishment of debt and $0.68 per share of restructuring items.
**What is FedEx's updated outlook?** For calendar 2026, FedEx expects adjusted diluted EPS of $18.00 to $18.60, revenue growth of about 12%, a tax rate of about 22.5%, and capital spending of $3.9 billion. Adjusted EPS guidance was previously $16.90 to $18.10.
**How did the two Express segments perform?** Express U.S. Domestic revenue rose 10% to $14,710 million and operating income rose 7% to $946 million. Express International revenue rose 17% to $7,465 million and operating income rose 15% to $220 million, though International package volume fell 4%.
**What did FedEx do with its capital and portfolio?** FedEx completed $2.0 billion of share repurchases, and $4.3 billion remains authorized. It also completed the FedEx Freight spin-off and sold FedEx Supply Chain to CMA CGM Group for approximately $1.4 billion on October 1, 2026.

## Slides and investor documents

- [Earnings Presentation](https://s21.q4cdn.com/665674268/files/doc_financials/2026/q3/FDX-Q3-FY26-Earnings-Presentation_FINAL_2per.pdf) (Slide deck)
- [Transcript](https://s21.q4cdn.com/665674268/files/doc_financials/2026/q3/Earnings-Transcript-Q3FY26.pdf) (Company's official transcript)
- [Webcast](https://events.q4inc.com/attendee/676762251) (Webcast replay)
- [10-Q](https://s21.q4cdn.com/665674268/files/doc_financials/2026/q3/76e601ba-f92f-407d-bab0-cd80ff4810c2.pdf) (Document)
- [Podcast](https://s21.q4cdn.com/665674268/files/doc_financials/2026/q3/FedEx_260319_1730.mp3) (Document)
- [Stat Book](https://s21.q4cdn.com/665674268/files/doc_financials/2026/q3/FedEx-Q3-FY26-Stat-Book.pdf) (Document)
- [Stat Book](https://s21.q4cdn.com/665674268/files/doc_financials/2026/q3/FedEx-Q3-FY26-Stat-Book.xlsx) (Document)