FedEx reported adjusted earnings per share of $3.74 for the quarter ending September 30, surpassing the expected $3.36, while revenue reached $22.86 billion, exceeding the forecast of $22.42 billion. However, net income fell to $290 million, or $1.21 per share, down from $650 million, or $2.73 per share, in the same quarter last year.
This earnings report is notable as it is the first since FedEx realigned its fiscal year to end on December 31, moving from a May 31 close. The company also successfully spun off FedEx Freight into a separate publicly traded entity. FedEx's express U.S. segment saw an increase in operating income, attributed to higher package yields and volume.
CEO Raj Subramaniam highlighted the company's strong performance and adjusted free cash flow, indicating success in high-value market segments and network optimization. Consequently, FedEx raised its full-year adjusted earnings per share forecast to a range of $18 to $18.60, up from $16.90 to $18.10.
Additionally, the company revised its 2026 revenue growth expectation to approximately 12% year-over-year, an increase from the previous estimate of 11%. In a leadership change, FedEx announced the appointment of Jamere Jackson as the new chief financial officer, effective November 30, succeeding interim CFO Claude Russ