10-K · July 20, 2026
FedEx delivered a favorable FY26 inflection, with revenue up 7.7%, Federal Express operating income up 21.0%, and free cash flow up to $5.116B. The strategic focus is a more efficient integrated express network through…
Earnings analysis · 10-Q
FDX earnings analysis
Filed October 28, 2026 · Our reading of the company's report
The latest report
FedEx delivered $22.855 billion of revenue and adjusted diluted EPS of $3.74, beating consensus estimates of $22.544 billion and $3.36, respectively. Management raised calendar 2026 revenue growth guidance to…
Read full summary
FedEx delivered $22.855 billion of revenue and adjusted diluted EPS of $3.74, beating consensus estimates of $22.544 billion and $3.36, respectively. Management raised calendar 2026 revenue growth guidance to approximately 12% and adjusted EPS guidance to $18.00-$18.60, although the filing’s quarterly history shows operating margin declining to 5.6% from 6.1% sequentially and 5.8% year over year. Free cash flow remained positive at $1.04 billion, while a $1.238 billion investment loss, $130 million of restructuring costs, and substantial repurchases remain important risks.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Reported figures
- Earnings per share
- $3.74
What stood out
-
Revenue and adjusted EPS beat estimates
Revenue was $22.855 billion, exceeding the $22.544 billion consensus estimate by approximately $311 million, while adjusted diluted EPS of $3.74 exceeded the $3.36 estimate by $0.38, or 11.3%.
-
Full-year outlook was raised
Calendar 2026 adjusted diluted EPS guidance increased to $18.00-$18.60 from $16.90-$18.10, while revenue growth guidance increased to approximately 12% from approximately 11%.
-
Margins remained under pressure
The quarterly history indicates a 74.7% gross margin and 5.6% operating margin, with operating margin down from 6.1% in the preceding period and below 5.8% in the comparable prior-year period.
-
Cash generation remained positive
Free cash flow was $1.04 billion, compared with $1.19 billion in the preceding period and $1.01 billion in the comparable prior-year period, indicating positive but sequentially lower cash generation.
-
Shareholder returns remained substantial
FedEx repurchased 6.3 million shares for an aggregate purchase price of $2.0 billion during the four-month period ended September 30, 2026.
-
New repurchase capacity was available
As of October 28, 2026, approximately $4.3 billion remained available under the new $5.0 billion 2026 share-repurchase authorization.
What to watch
-
Investment volatility and restructuring costs
The filing states that there have been no material changes from the risk factors disclosed in the Annual Report, limiting evidence of a newly elevated filing-specific risk. The company nevertheless reported a $1.238 billion investment loss and $130 million of restructuring costs in the accompanying earnings disclosure.
-
Large capital allocation commitment
The company repurchased 6.3 million shares for $2.0 billion while also authorizing a new $5.0 billion program; approximately $4.3 billion remained available as of October 28, 2026. Continued repurchases could reduce financial flexibility if operating conditions weaken.
-
Debt and interest-rate exposure
FedEx filed debt instruments on September 14, 2026, including senior notes bearing coupons of 4.000% due 2030, 4.625% due 2034, and 5.750% due 2036. Higher-for-longer interest rates could increase the cost of refinancing or new borrowing.
-
Foreign-exchange sensitivity
Foreign-exchange exposure spans the euro, Chinese yuan, Canadian dollar, British pound, Australian dollar, Mexican peso, Hong Kong dollar, and Japanese yen; the filing states the stronger U.S. dollar had a slightly positive effect during the four-month period ended September 30, 2026, which may not persist.
-
Fuel-price exposure
The company remains exposed to vehicle and jet fuel prices, although the filing states this risk is largely mitigated by indexed fuel surcharges. Fuel-price volatility can still affect margins and customer demand.
Management's outlook
Calendar 2026 adjusted diluted EPS guidance was raised to $18.00-$18.60 from $16.90-$18.10, and revenue growth guidance was raised to approximately 12% from approximately 11%. GAAP diluted EPS guidance is $35.30-$35.90 versus prior guidance of $16.55-$17.75. Pension contributions of $475 million and capital spending of $3.9 billion were unchanged. Revenue guidance fields are null because the outlook was expressed as a growth rate rather than a dollar range.
Earlier filings 1
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.