FedEx FDX-N forecast annual profit above estimates on Wednesday after reporting a 28-per-cent rise in third-quarter earnings, driven by improved pricing, higher volumes and cost-saving measures.
However, its shares dropped nearly 4 per cent in extended trading after quarterly operating margin at its core U.S. express delivery segment fell to 6.6 per cent from 6.8 per cent the year before.
The Memphis-based company expects 2026 adjusted profit in the range of US$18-$18.60 per share, above analysts’ expectation of US$17.73 per share, according to data compiled by LSEG.
FedEx switched to reporting on a calendar rather than fiscal-year basis beginning in the latest quarter.
It said results improved due to better returns on packages, higher volumes and ongoing cost savings. Those factors were partly offset by the cost of hiring additional transportation, increased employee wages and compensation as well as changing U.S. tariff policies.
“We remain committed to disciplined operational execution to reduce our cost-to-serve while focusing on profitable growth,” CEO Raj Subramaniam said.
FedEx, a bellwether for global trade, reported third-quarter adjusted profit of US$3.74 per share, up from US$2.93 per share the year before.
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