Higher

2026

Stronger

Billion

<h2 id="tldr">TLDR</h2>
<ul>
 <li>FedEx revenue climbs 12% to $22.9 billion as adjusted earnings rise in Q3 2026.</li>
 <li>FedEx repurchases $2 billion in shares as $4.3 billion remains for future buybacks.</li>
 <li>FedEx raises 2026 revenue growth guidance to 12% and adjusted EPS to $18.60.</li>
 <li>FedEx GAAP earnings fall sharply after a $1.2 billion loss on its Freight investment.</li>
 <li>FedEx stock drops 2.40% after hours to $297.27 despite stronger adjusted results.</li>
</ul>
<p>FedEx (FDX) reported stronger quarterly revenue and adjusted earnings, increased share repurchases and raised its 2026 financial outlook. However, the stock faced selling pressure after closing at $304.58, down 0.82%, before falling to $297.27 after hours, a decline of 2.40%. The results reflected stronger package demand, cost savings, and improved operating performance, although a large investment loss reduced reported earnings.</p>
<p><a href="https://knockoutstocks.com/stock/FDX" rel="noopener noreferrer nofollow"><br><img src="https://knockoutstocks.com/api/stocks/FDX/embed" alt="FDX Stock Card"></a><a href="https://knockoutstocks.com/stock/FDX" rel="noopener noreferrer nofollow">FedEx Corporation, FDX<br></a></p>
<h2 id="revenue-growth-and-adjusted-earnings-strengthen-operating-results">Revenue Growth and Adjusted Earnings Strengthen Operating Results</h2>
<p><a href="https://blockonomi.com/fedex-corporation-fdx-stock-plunge-as-global-trade-navigator-expands-digital-shipping-tools/" rel="noopener noreferrer nofollow">FedEx</a> generated $22.9 billion in revenue for the quarter ended September 30, 2026, compared with $20.4 billion a year earlier. The increase represented approximately 12% annual growth, supported by higher package volumes, stronger base yields, and continued cost reductions. Additionally, adjusted operating income rose 16% to $1.20 billion, compared with $1.03 billion in the previous year’s quarter.</p>
<p>Adjusted diluted earnings per share increased to $3.74 from $2.93, representing growth of approximately 28%. Meanwhile, adjusted operating margin improved to 5.3% from 5.1%, reflecting stronger underlying performance despite higher operating expenses. Higher transportation rates, wage costs, variable compensation, and global trade policy changes partially offset these improvements.</p>
<p>GAAP diluted earnings per share fell to $1.21 from $2.73, while net income declined approximately 55% to $290 million. FedEx recorded a $1.2 billion loss on its retained FedEx Freight investment following the June spin-off. The valuation loss reduced quarterly diluted earnings per share by $5.18, while a debt-extinguishment gain and restructuring adjustments affected the reported results.</p>
<h2 id="2-billion-buybacks-support-capital-returns">$2 Billion Buybacks Support Capital Returns</h2>
<p>FedEx repurchased approximately 6.3 million shares for $2 billion between June and September 2026. The company reported that reduced outstanding shares contributed $0.02 to quarterly diluted earnings per share. Furthermore, FedEx retained $4.3 billion in authorization for additional share repurchases at the end of September.</p>
<p>The company held $8 billion in cash on September 30, including approximately $2.7 billion in tariff refunds reserved for customers. <a href="https://blockonomi.com/fedex-fdx-shares-decline-nearly-4-amid-1-4-billion-logistics-unit-sale-negotiations/" rel="noopener noreferrer nofollow">FedEx</a> also used a dividend of approximately $4.1 billion from FedEx Freight, alongside existing cash, to fund debt tender offers. Those transactions covered approximately $4.9 billion in outstanding debt principal and generated a $627 million pretax gain.</p>
<p>Meanwhile, FedEx completed the sale of FedEx Supply Chain to CMA CGM Group on October 1 for approximately $1.4 billion. The transaction followed the Freight spin-off and advanced the company’s strategy to simplify its business portfolio. These moves reflect FedEx’s efforts to streamline operations, manage its balance sheet, and direct capital toward long-term priorities.</p>
<h2 id="higher-2026-guidance-sets-a-stronger-financial-outlook">Higher 2026 Guidance Sets a Stronger Financial Outlook</h2>
<p>FedEx raised its 2026 revenue growth forecast to approximately 12%, up from its previous estimate of 11%. The company also increased its adjusted diluted earnings per share guidance to 18.00-18.60, compared with 16.90-18.10 previously. These revisions reflect stronger operating results and continued savings from network optimization and business transformation initiatives.</p>
<p><a href="https://blockonomi.com/fedex-fdx-stock-plunges-7-despite-strong-earnings-what-spooked-wall-street/" rel="noopener noreferrer nofollow">FedEx</a> projected GAAP diluted earnings per share of 35.30-35.90 for continuing operations. However, the previous GAAP forecast excluded certain Freight investment valuation effects and debt-extinguishment gains, limiting direct comparisons between the ranges. The company also lowered its expected effective tax rate to approximately 22.5% from 23%.</p>
<p>FedEx maintained its 2026 capital spending forecast at $3.9 billion and pension contribution estimate at $475 million. Planned investments will support network efficiency, facility modernization, fleet upgrades, and automation. Despite the stronger outlook, the stock’s after-hours decline highlighted the contrast between improving adjusted performance and weaker reported earnings.</p>
<p>&nbsp;</p>
<p>The post <a href="https://blockonomi.com/fedex-fdx-stock-revenue-growth-2-billion-buybacks-and-higher-2026-guidance/" rel="noopener noreferrer nofollow">FedEx (FDX) Stock: Revenue Growth, $2 Billion Buybacks and Higher 2026 Guidance</a> appeared first on <a href="https://blockonomi.com" rel="noopener noreferrer nofollow">Blockonomi</a>.</p>

FedEx (FDX) Stock: Revenue Growth, $2 Billion Buybacks and Higher 2026 Guidance

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