FedEx reported higher revenue and operating income for its quarter ended Sept. 30, with adjusted earnings per share rising to $3.74 from $2.93 a year earlier. The company also raised its full-year calendar 2026 earnings outlook and said it completed $2 billion in share repurchases from June through September.
The gap between reported and adjusted earnings was unusually wide this quarter, reflecting a large loss on a short-term investment and other excluded items.
Key details
- Revenue increased to $22.9 billion from $20.4 billion in the year-earlier quarter.
- Adjusted operating income rose to $1.20 billion from $1.03 billion, while adjusted operating margin improved to 5.3% from 5.1%.
- On a reported basis, operating income was $1.07 billion, compared with $0.97 billion a year earlier. Reported operating margin edged down to 4.7% from 4.8%.
- Adjusted net income was $900 million, up from $690 million, and adjusted diluted earnings per share climbed to $3.74 from $2.93.
- Reported net income fell to $290 million from $650 million. Reported diluted earnings per share was $1.21, down from $2.73.
- The company’s adjustment figures include a $5.18-per-share loss on a short-term investment, a $1.97-per-share gain from extinguishing debt, and a $0.68-per-share restructuring, exit and other-cost adjustment. These items help explain why reported EPS was far below adjusted EPS.
- FedEx attributed the improvement in operating results to higher package yields and volumes, along with cost reductions from business optimization. Those gains were partly offset by higher purchased transportation and wage costs, increased variable compensation, and effects from global trade policy changes.
- Management said the stronger results supported an increase to its full-year calendar 2026 earnings outlook. The announcement provided here does not give the revised outlook figure.
- FedEx completed $2 billion of share repurchases during the June-to-September period.
What it means
FedEx’s adjusted results show improved operating performance, with revenue growth and a higher adjusted margin. The reported earnings decline reflects the quarter’s investment and other specified items rather than the direction of adjusted operating income. The share repurchases represent a substantial return of capital to shareholders during the period.