FedEx Crushes Earnings Again, Hikes Full-Year Guidance Higher

Key Details FedEx reported fiscal Q3 earnings that far exceeded Wall Street expectations, with revenue hitting $24 billion, up 8% year over year. Adjusted earnings per share reached $5.25, crushing the consensus estimate of $4.09 and climbing 16% from the prior year. Strong performance across package services and ongoing cost-cutting initiatives drove the outperformance. Why It Matters On the back of these results, FedEx raised its full-year 2026 guidance significantly. The company now projects revenue growth of 6.25% at the mid-range, up from 5.5%, with adjusted EPS between $19.30 and $20.10 compared to the previous range of $17.80 to $19. The stock surged nearly 9% in after-hours trading, reflecting investor confidence in the carrier's trajectory. Transformation Progress FedEx expects to exceed $1 billion in permanent cost reductions this fiscal year through network restructuring and integration efforts. The company is on track to close 475 parcel terminals by end of 2027, with an additional 10 locations shuttering in New York and Pennsylvania by June. Capital spending has been trimmed to $4.1 billion from $4.5 billion. Market Implications Analysts believe FedEx is capturing market share from UPS, which is shedding volume while implementing price increases and fuel surcharges to offset Amazon losses and network contraction.