FedEx reports strong third quarter results, raises 2026 outlook

FedEx reported solid financial results for its third quarter ended February 28, 2026, reflecting strong performance across its global network and continued momentum in key business segments.

Revenue Growth

FedEx reported $24.0 billion in consolidated revenue for Q3 FY2026, up from $22.2 billion in the prior year period.

Profit and Margins

The company posted operating income of $1.35 billion and a net income of $1.06 billion under GAAP. Diluted earnings per share reached $4.41, with adjusted non‑GAAP EPS of $5.25. Operating margins remained solid as the business continued cost and yield improvements.

Segment Performance

FedEx’s Federal Express segment improved its results driven by higher domestic and international package yields and volume growth. The FedEx Freight segment saw pressure from spin‑off‑related costs and elevated wage rates, though yield improvements partially offset these impacts.

Spin‑Off Progress

FedEx remains on track to complete the planned spin‑off of FedEx Freight on June 1, 2026, which is expected to create a separate publicly traded company focused on U.S. freight operations.

Revised 2026 Outlook

Following the strong quarter, FedEx updated its full‑year fiscal 2026 outlook. It now expects 6.0%–6.5% revenue growth year‑over‑year and diluted EPS of $16.05–$16.85 on a non‑GAAP basis, with potential further upside excluding certain adjustments. Capital spending is forecast at no more than $4.1 billion.

Executive Comment

“Strong third‑quarter results and an improved outlook reflect execution against our strategic priorities,” said John Dietrich, FedEx executive vice president and CFO. The company highlighted disciplined operational execution, cost reduction initiatives, and ongoing investments in network optimization as key drivers of performance and future growth.

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