TLDR
FedEx revenue climbs 12% to $22.9 billion as adjusted earnings rise in Q3 2026.
FedEx repurchases $2 billion in shares as $4.3 billion remains for future buybacks.
FedEx raises 2026 revenue growth guidance to 12% and adjusted EPS to $18.60.
FedEx GAAP earnings fall sharply after a $1.2 billion loss on its Freight investment.
FedEx stock drops 2.40% after hours to $297.27 despite stronger adjusted results.
FedEx (FDX) reported stronger quarterly revenue and adjusted earnings, increased share repurchases and raised its 2026 financial outlook. However, the stock faced selling pressure after closing at $304.58, down 0.82%, before falling to $297.27 after hours, a decline of 2.40%. The results reflected stronger package demand, cost savings, and improved operating performance, although a large investment loss reduced reported earnings.
FedEx Corporation, FDX
Revenue Growth and Adjusted Earnings Strengthen Operating Results
FedEx generated $22.9 billion in revenue for the quarter ended September 30, 2026, compared with $20.4 billion a year earlier. The increase represented approximately 12% annual growth, supported by higher package volumes, stronger base yields, and continued cost reductions. Additionally, adjusted operating income rose 16% to $1.20 billion, compared with $1.03 billion in the previous year’s quarter.
Adjusted diluted earnings per share increased to $3.74 from $2.93, representing growth of approximately 28%. Meanwhile, adjusted operating margin improved to 5.3% from 5.1%, reflecting stronger underlying performance despite higher operating expenses. Higher transportation rates, wage costs, variable compensation, and global trade policy changes partially offset these improvements.
GAAP diluted earnings per share fell to $1.21 from $2.73, while net income declined approximately 55% to $290 million. FedEx recorded a $1.2 billion loss on its retained FedEx Freight investment following the June spin-off. The valuation loss reduced quarterly diluted earnings per share by $5.18, while a debt-extinguishment gain and restructuring adjustments affected the reported results.
$2 Billion Buybacks Support Capital Returns
FedEx repurchased approximately 6.3 million shares for $2 billion between June and September 2026. The company reported that reduced outstanding shares contributed $0.02 to quarterly diluted earnings per share. Furthermore, FedEx retained $4.3 billion in authorization for additional share repurchases at the end of September.
The company held $8 billion in cash on September 30, including approximately $2.7 billion in tariff refunds reserved for customers. FedEx also used a dividend of approximately $4.1 billion from FedEx Freight, alongside existing cash, to fund debt tender offers. Those transactions covered approximately $4.9 billion in outstanding debt principal and generated a $627 million pretax gain.
Meanwhile, FedEx completed the sale of FedEx Supply Chain to CMA CGM Group on October 1 for approximately $1.4 billion. The transaction followed the Freight spin-off and advanced the company’s strategy to simplify its business portfolio. These moves reflect FedEx’s efforts to streamline operations, manage its balance sheet, and direct capital toward long-term priorities.
Higher 2026 Guidance Sets a Stronger Financial Outlook
FedEx raised its 2026 revenue growth forecast to approximately 12%, up from its previous estimate of 11%. The company also increased its adjusted diluted earnings per share guidance to 18.00-18.60, compared with 16.90-18.10 previously. These revisions reflect stronger operating results and continued savings from network optimization and business transformation initiatives.
FedEx projected GAAP diluted earnings per share of 35.30-35.90 for continuing operations. However, the previous GAAP forecast excluded certain Freight investment valuation effects and debt-extinguishment gains, limiting direct comparisons between the ranges. The company also lowered its expected effective tax rate to approximately 22.5% from 23%.
FedEx maintained its 2026 capital spending forecast at $3.9 billion and pension contribution estimate at $475 million. Planned investments will support network efficiency, facility modernization, fleet upgrades, and automation. Despite the stronger outlook, the stock’s after-hours decline highlighted the contrast between improving adjusted performance and weaker reported earnings.
The post FedEx (FDX) Stock: Revenue Growth, $2 Billion Buybacks and Higher 2026 Guidance appeared first on Blockonomi .
