FedEx beat on the top and bottom lines in its fiscal first-quarter earnings report on Thursday.
The stock rose more than 5% in after-hours trading on Thursday.
“Our earnings growth underscores the success of our strategic initiatives, as we are flexing our network and reducing our cost-to-serve, while further enhancing our value proposition and customer experience,” CEO Raj Subramaniam said in a statement.
Here’s how the company performed in the first fiscal quarter, compared with what Wall Street was expecting based on a survey of analysts by LSEG:
- Earnings per share: $3.83 adjusted vs. $3.59 expected
- Revenue: $22.24 billion vs. $21.66 billion expected
The package delivery company posted net income of $820 million, or $3.46 per share, for the first fiscal quarter ended Aug. 31, compared to $790 million, or $3.21 per share, in the year-ago period. Adjusted for FedEx Freight spin-off costs and other changes, the company posted net income of $910 million or $3.83 per share.
Average daily volumes in the U.S. saw an increase of 6% overall, the company reported. FedEx said segment operating results saw improvements this quarter due to higher domestic package volumes, but the FedEx Freight segment operating results fell due to lower revenue and higher wages.
The company said it sees revenue growth in 2026 in the range of 4% to 6%, compared with a Wall Street estimate of 1.2%. FedEx expects full-year earnings per share for fiscal year 2026 at $17.20 to $19, which is a midpoint of $18.10, compared with an estimate of $18.21.
FedEx is continuing the process of spinning off FedEx Freight into a new publicly traded company, with an expected completion date of June 2026, the company said.
Subramaniam said FedEx moves 17 million packages through its network daily.
