FedEx Corporation (FDX.US) Delivers First Results After Freight Spin-Off: Revenue and Profit Both Beat Expectations, Raises Full-Year Guidance, and Announces New CFO

FedEx Corporation (FDX.US) released its quarterly earnings report for the period ended September 30, 2026, on Wednesday, October 28, Eastern Time. Benefiting from higher package yields, volume growth, and continued progress on structural cost-reduction measures, the company's revenue and profit for the quarter both beat Wall Street expectations, and it raised its full-year earnings outlook for calendar year 2026. However, the company's share price edged lower in after-hours trading following the release. Core Results: Revenue and Profit Both Beat Expectations According to the earnings data, under US Generally Accepted Accounting Principles (GAAP), the company's net profit for the quarter was US$290 million, or US$1.21 per diluted share, down from US$650 million (US$2.73 per share) in the year-ago period. The sharp fluctuation in profit was mainly due to one-off items, including losses related to short-term investments, gains on debt extinguishment, and certain restructuring costsexcluding these items, adjusted earnings per share were US$3.74, up about 28% from US$2.93 in the year-ago period and better than the market expectation of US$3.36. The report showed that the company generated revenue of US$22.9 billion for the quarter, up about 12% from US$20.4 billion in the year-ago period and above the market expectation of US$22.42 billion; adjusted operating profit was US$1.2 billion, with an adjusted operating margin of 5.3%. The difference between GAAP net profit and adjusted net profit mainly stems from the one-off impact of the spin-off of FedEx Corporation's freight business (FedEx Freight): the company completed the spin-off and listing of FedEx Freight on June 1, 2026 (the new company trades on the NYSE under the ticker "FDXF"), retaining a 19.9% equity stake, and recognized a US$1.2 billion book loss on that equity investment in the quarter; meanwhile, using the approximately US$4.1 billion dividend received following the spin-off and its own cash, the company completed a tender offer repurchase of approximately US$4.9 billion of debt, generating a pre-tax gain of US$627 million. First Report Card After Fiscal-Year Change Shines It is worth noting that this is FedEx Corporation's first quarterly report after changing its fiscal yearthe company's fiscal year-end has been changed from the original May 31 to December 31, so this reporting period is now aligned with calendar-year quarters. In addition, this report is also the company's first full quarterly report released after successfully spinning off FedEx Freight as an independent listed company. By business segment, FedEx Corporation's US domestic express business posted operating profit growth in the quarter, mainly driven by higher package yields and volume growth; the international business benefited from growth in international export volumes, but this was partly offset by the effects of wage increases, higher purchased transportation costs, and changes in global trade policy. FedEx Corporation President and Chief Executive Officer Raj Subramaniam said in a statement: "Strong operating results and adjusted free cash flow demonstrate that FedEx Corporation continues to win share in high-value segments while continuously optimizing its network, which drove us to raise our full-year outlook." Raises Full-Year Guidance and Announces New CFO to Take Office Next Month Based on strong quarterly performance, FedEx Corporation raised its calendar year 2026 adjusted earnings per share forecast to US$18 to US$18.60 from the previous US$16.90 to US$18.10; it also raised its 2026 revenue growth forecast to about 12% year-on-year from the previous 11%. On capital returns, the company completed US$2 billion of share repurchases between June and September. As of September 30, the company held US$8 billion in cash, of which about US$2.7 billion was IEEPA tariff refunds held on behalf of customers. In addition, the company completed the sale of its subsidiary FedEx Supply Chain to CMA CGM on October 1 for approximately US$1.4 billion; effective January 4, 2027, FedEx Corporation's parcel shipping rates will increase by an average of 5.9%. Earlier this week, FedEx Corporation announced the appointment of former AutoZone executive Jamere Jackson as the company's new Chief Financial Officer, effective November 30. He will succeed Claude Russ, who has served as interim CFO since June 1. The previous interim CFO, John Dietrich, announced in April this year that he would step down from the role. Market analysts noted that after completing the spin-off of its freight business, the sale of its supply chain business, and the adjustment of its fiscal-year structure, FedEx Corporation is focusing on its core high-value B2B parcel and air freight businesses, and the results of its transformation are gradually materializing on the earnings side; however, uncertainty in global trade policy and cost-side pressures still warrant continued attention.