FedEx (NYSE:FDX) Issues Quarterly Earnings Results, Beats Expectations By $0.40 EPS

FedEx (NYSE:FDX) posted its quarterly earnings results on Tuesday. The shipping service provider reported $6.31 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $5.91 by $0.40, Zacks reports. The firm had revenue of $25.01 billion for the quarter, compared to analysts’ expectations of $24.04 billion. FedEx had a return on equity of 16.76% and a net margin of 4.88%.The company’s revenue for the quarter was up 12.5% compared to the same quarter last year. During the same period in the prior year, the business earned $6.07 EPS. FedEx updated its FY 2027 guidance to 16.900-18.100 EPS.

Here are the key takeaways from FedEx’s conference call:

• FedEx reported a strong FY2026, with revenue and adjusted operating income both up 8% for the year and adjusted EPS of $20.24, while Q4 adjusted EPS of $6.31 came in above the high end of guidance.
• The company said its transformation efforts are paying off, noting it exceeded the $1 billion transformation-savings target and remains on track for $2 billion of savings by CY2027.
• Management highlighted continued strength in premium business-to-business and high-value consumer segments, with FEC revenue up 14% in Q4 and gains across healthcare, automotive, aerospace, and data center-related demand.
• FedEx initiated calendar-year 2026 guidance for adjusted EPS of $16.90 to $18.10, implying about 20% growth in the June-to-December transition period, and expects revenue growth of roughly 11%.
• FedEx Freight was spun off on June 1, and the company said it expects to monetize its remaining stake tax-efficiently within 24 months while separately addressing stranded costs and other transition items over time.

FedEx Price Performance

NYSE FDX traded down $9.72 on Tuesday, reaching $319.06. 3,469,002 shares of the company’s stock traded hands, compared to its average volume of 2,270,611. The stock has a market cap of $76.13 billion, a PE ratio of 16.98, a P/E/G ratio of 1.48 and a beta of 1.28. FedEx has a 12 month low of $172.88 and a 12 month high of $345.36. The stock has a 50-day simple moving average of $367.67 and a 200 day simple moving average of $345.54. The company has a debt-to-equity ratio of 0.77, a current ratio of 1.47 and a quick ratio of 1.44.

FedEx Cuts Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, July 7th. Investors of record on Monday, June 22nd will be given a $1.22 dividend. The ex-dividend date is Monday, June 22nd. This represents a $4.88 dividend on an annualized basis and a yield of 1.5%. FedEx’s payout ratio is presently 25.97%.

Insider Buying and Selling at FedEx

In other news, EVP Gina F. Adams sold 20,450 shares of FedEx stock in a transaction that occurred on Tuesday, April 14th. The stock was sold at an average price of $366.45, for a total value of $7,493,902.50. Following the sale, the executive vice president directly owned 19,403 shares in the company, valued at approximately $7,110,229.35. This trade represents a 51.31% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Susan C. Schwab sold 5,795 shares of FedEx stock in a transaction that occurred on Wednesday, April 15th. The shares were sold at an average price of $369.00, for a total value of $2,138,355.00. Following the sale, the director directly owned 10,038 shares in the company, valued at approximately $3,704,022. The trade was a 36.60% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 48,104 shares of company stock worth $17,599,006 in the last 90 days. 0.53% of the stock is owned by company insiders.

Hedge Funds Weigh In On FedEx

Several large investors have recently made changes to their positions in FDX. EFG International AG bought a new position in FedEx during the 4th quarter valued at about $27,000. Wilkerson Advisory Group LLC bought a new stake in shares of FedEx in the fourth quarter worth approximately $29,000. Intesa Sanpaolo Wealth Management purchased a new position in shares of FedEx during the fourth quarter valued at approximately $33,000. Wealth Watch Advisors INC purchased a new position in shares of FedEx during the third quarter valued at approximately $28,000. Finally, Uniplan Investment Counsel Inc. bought a new position in FedEx during the fourth quarter valued at approximately $36,000. 84.47% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Ratings Changes

A number of analysts recently issued reports on the stock. Barclays decreased their price objective on shares of FedEx from $450.00 to $425.00 and set an “overweight” rating for the company in a report on Wednesday, June 17th. Deutsche Bank Aktiengesellschaft downgraded shares of FedEx from a “buy” rating to a “hold” rating in a research report on Wednesday, May 27th. Jefferies Financial Group began coverage on shares of FedEx in a research note on Tuesday. They set a “buy” rating and a $200.00 price target for the company. Zacks Research cut shares of FedEx from a “strong-buy” rating to a “hold” rating in a report on Wednesday, March 18th. Finally, Raymond James Financial started coverage on FedEx in a report on Wednesday, June 3rd. They set an “outperform” rating and a $180.00 price objective for the company. Eighteen investment analysts have rated the stock with a Buy rating, nine have issued a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average price target of $358.14.

Key Headlines Impacting FedEx

Here are the key news stories impacting FedEx this week:

• Positive Sentiment: FedEx beat fiscal Q4 earnings and revenue estimates, with EPS of $6.31 to $6.60 and revenue around $25.0 billion, helped by stronger package yields and volume. FedEx Reports Strong Fourth Quarter and Full-Year Results
• Positive Sentiment: Operating cash flow improved sharply, suggesting better cash generation and supporting the company’s cost-cutting and post-spin-off restructuring plan. FedEx Revenue Rises on Growth in Package Yields, Volume
• Neutral Sentiment: Management said the growth strategy is working and highlighted the impact of the FedEx Freight spin-off on network optimization and cost reductions. FedEx posts strong earnings results in last quarter with freight business
• Negative Sentiment: Despite the quarterly beat, shares fell because fiscal 2027 EPS guidance of $16.90 to $18.10 came in below Wall Street expectations, raising concern that profit growth may slow. FedEx shares drop on weak profit forecast as Q4 results top estimates
• Negative Sentiment: FedEx also traded against a broader risk-off market backdrop, with tech weakness and weaker futures adding pressure to sentiment around the stock. Dow Jones Futures: Nasdaq Breaks Support; FedEx, Cerebras Tumble Late With Micron Due

About FedEx

FedEx Corporation (NYSE: FDX) is a global logistics and courier company headquartered in Memphis, Tennessee. Founded by Frederick W. Smith in 1971 and beginning operations in the early 1970s, the company pioneered overnight express shipping and has since expanded into a diversified portfolio of transportation, e-commerce and supply-chain services. FedEx operates an integrated air-and-ground network that moves parcels, freight and documents for businesses and consumers worldwide.

FedEx’s core operating segments include express parcel delivery via its FedEx Express division, domestic and residential parcel delivery through FedEx Ground, less-than-truckload (LTL) freight services, and logistics and supply-chain management solutions.