FedEx (FDX) Beats Q1 Earnings Expectations, Stock Jumps

FedEx (FDX) exceeded expectations in its fiscal first-quarter earnings report, with earnings per share of $3.83 and revenue of $22.24 billion. The stock rose more than 5% in after-hours trading. CEO Raj Subramaniam credited strategic initiatives for the success, mentioning improvements in network flexibility and cost reduction.

The company posted net income of $820 million for the quarter, citing a 6% increase in average daily volumes in the U.S. Segment operating results improved due to higher domestic package volumes. FedEx anticipates revenue growth of 4% to 6% in 2026, surpassing Wall Street estimates of 1.2%.

FedEx expects earnings per share for fiscal year 2026 to be between $17.20 and $19, with the midpoint at $18.10. This projection differs slightly from the Wall Street estimate of $18.21. The company is in the process of spinning off FedEx Freight into a new publicly traded company, with completion expected by June 2026.