FedEx Q3 Profit Falls on Freight Spin-Off Loss, Adjusted EPS Rises; Lifts 2026 Outlook

FedEx Corp. (FDX) reported lower third-quarter net income on Wednesday, though adjusted earnings and revenue rose year over year, prompting the company to raise its full-year 2026 outlook. Net income fell to $290 million, or $1.21 per share, from $645 million, or $2.73 per share, a year earlier. Adjusted net income climbed to $896 million, or $3.74 per diluted share, from $693 million, or $2.93 per share. Revenue rose to $22.9 billion from $20.4 billion, and adjusted operating margin improved to 5.3% from 5.1%. Reported results included a $1.2 billion loss on FedEx's retained stake in FedEx Freight following its June spin-off, partly offset by a $627 million gain from debt extinguishment. FedEx raised calendar 2026 revenue growth guidance to about 12% from 11% and lifted adjusted EPS guidance to $18.00-$18.60 from $16.90-$18.10. It expects capital spending of $3.9 billion and completed $2.0 billion in share repurchases during the quarter, with $4.3 billion remaining under authorization.