FedEx Raises Full-Year Profit Target to $18.60 After Q1 Beat

FedEx delivered quarterly results on Wednesday that exceeded Wall Street predictions on both revenue and profit. The company simultaneously raised its financial outlook for the entire fiscal year. Despite the strong numbers, shares dipped slightly in extended trading following the release.

For the quarter ended Sept. 30, the company reported adjusted earnings of $3.74 per share. This figure surpassed the $3.36 per share that LSEG analysts had projected. Revenue totaled $22.86 billion, outpacing the consensus estimate of $22.42 billion. On a reported basis, net income stood at $290 million, or $1.21 per share. That amount was lower than the $650 million, or $2.73 per share, reported a year earlier. The adjusted figures exclude one-time items such as short-term investment losses, debt extinguishment gains, and specific restructuring costs.

This report marks the first filing under FedEx's new fiscal calendar. The company shifted its year-end date from May 31 to Dec. 31. The announcement also follows the successful spinoff of FedEx Freight into an independent publicly traded entity. Within its core operations, the express U.S. segment saw operating income rise during the quarter. FedEx credited higher package yields and increased volume for this growth.

CEO Raj Subramaniam stated that strong operating results and adjusted free cash flow demonstrate the company is winning in high-value market segments. He noted that FedEx is optimizing its network while driving an increase to its full-year outlook. The company now projects adjusted earnings per share for the full year to fall between $18 and $18.60. This new range is higher than the previous forecast of $16.90 to $18.10. FedEx also increased its 2026 revenue growth expectation to approximately 12 percent year over year, up from the prior 11 percent projection.

In a separate personnel move, FedEx appointed Jamere Jackson as its new chief financial officer. Jackson, a former executive at AutoZone, begins his role on Nov. 30. He succeeds Claude Russ, who has served as interim CFO since June 1. John Dietrich announced his departure from the position in April.