$FDX · FEDEX CORP
FedEx reported Q3 FY2026 results with revenue of $22.9B (up from $20.4B YoY), adjusted EPS of $3.74, and GAAP EPS of $1.21. The GAAP figure includes a $5.18/share loss on the FedEx Freight investment mark-to-market. Full-year adjusted EPS guidance was raised to $18.00–$18.60, and the company completed $2.0B in buybacks during the quarter.
- Adjusted EPS of $3.74 vs $2.93 YoY, driven by higher package yields, volumes, and cost reductions.
- GAAP EPS was $1.21, crushed by a $5.18/share loss on the FedEx Freight short-term investment mark-to-market.
- Revenue rose to $22.9B from $20.4B YoY; Express U.S. Domestic package revenue up 9% on 7% higher composite yield.
- Full-year adjusted EPS guidance raised to $18.00–$18.60 from $16.90–$18.10; revenue growth outlook lifted to ~12%.
- $2.0B in share repurchases executed June–September; $4.3B remains on the 2026 buyback authorization.
Extended-hours trading shows FDX at $296.15, down 2.77% vs the $304.58 regular close. The GAAP EPS miss ($1.21 vs adjusted $3.74) and the $5.18/share investment loss tied to the FedEx Freight stake likely overshadow the guidance raise in after-hours.
The wide gap between adjusted ($3.74) and GAAP ($1.21) EPS reveals how the FedEx Freight spin-off's retained 19.9% stake creates ongoing P&L noise that masks strong underlying operating momentum.
FedEx's 7% composite package yield improvement and 2% volume growth signal pricing power in the U.S. parcel duopoly. The completed FedEx Freight spin-off and FedEx Supply Chain sale ($1.4B to CMA CGM) mirror the asset-light focus seen across logistics peers.
Global trade policy changes and increased purchased transportation rates partially offset yield gains. The $3.3B FedEx Freight equity stake is subject to mark-to-market volatility, as demonstrated by the $1.2B quarterly loss. Forward outlook assumes no additional adverse geopolitical or trade developments.