FDX
FedEx Corp (FDX) Q3 2026 Earnings Call Highlights: Strong Revenue Growth Amid Industry Challenges
Article Summary
BUY- FedEx Corp. (NYSE: FDX) posted strong revenue growth of 8% year-over-year, driven by yield and volume strength across nearly all package services, with adjusted operating income rising 7% and EPS rising 16%.
- Fedex grew revenue by 10% at Federal Express Corporation (FEC) and expanded adjusted operating margin by 50 basis points, marking the sixth consecutive quarter of margin expansion.
- FedEx Freight reported a 5% decline in revenue, pressured by lower shipments and continued LTL industry trends, while the grounding of the MD-11 fleet reduced operating income by $120 million.
- The company raised its FY26 adjusted earnings outlook to $19.30 to $20.10 per diluted share, reflecting strong Q3 performance and positive trends expected to continue into Q4.
- FDX is on track to achieve $2 billion in cumulative savings from Network 2.0 and associated One FedEx initiatives by the end of 2027, though the company expects an EPS headwind from share dilution and higher interest costs due to recent debt issuance by FedExFreight.
Free users see 3 BUY signals per day. Premium unlocks all of them, plus instant email alerts.
See Plans
Growth Stock Scoring Breakdown
| METRIC | VALUE | WEIGHT | ANALYSIS |
|---|---|---|---|
| Sales Growth TTM ? | 3.1% | 25% | 20.0 ptsMinimal (3.1%) - Very weak |
| EPS Growth Next 5Y ? | 11.6% | 25% | 35.0 ptsBelow Screener (11.6%) - Modest outlook |
| Target Price Upside ? | 11.6% | 20% | 50.0 ptsMeets Minimum (11.6%) - Target: $397.40 vs Current: $356.11 |
| Gross Margin % ? | 22.1% | 15% | 40.0 ptsModerate (22.1%) - Adequate margins |
| Drawdown from 52-Wk High ? | -9.4% | 15% | 20.0 ptsBarely a Dip (-9.4%) - Near recent highs |
Disclaimer: This rating is for informational purposes only and is not financial advice.
All data sourced from Finviz.
Always conduct your own research and consult with a financial advisor before making investment decisions.
Past performance does not guarantee future results.
About FDX
- FedEx Corporation, together with its subsidiaries, provides transportation, e-commerce, and business services in the United States and internationally.
- It operates through Federal Express and FedEx Freight segments.
- The company offers transportation services, including express, freight, less-than-truckload freight, and time-specific freight-shipping; and small-package ground delivery services.
- It also provides e-commerce and digital solutions; dataworks; printing and shipping management, including digital printing, professional finishing, document creation, design solutions, direct mail, signs and graphics, custom-branded boxes, copying, computer rental, free Wi-Fi, corporate print solutions, shredding, expedited U.S. passport processing and renewal, and digital notarization; packing services, as well as packing supplies and boxes; document and business services; and retail access for package transportation.
- In addition, the company offers logistics services, air and ocean freight-forwarding and cargo transportation, specialty transportation, customs brokerage and clearance, trade management tools and data, and door-to-door solutions; and third party logistics and supply chain management solutions, such as inbound logistics, warehousing and distribution, fulfillment, contract packaging and product configuration, systems integration, returns process and disposition, test, repair, refurbishment, and product liquidation.
- Further, it provides sales, marketing, administrative, information technology, and back-office support services.
- FedEx Corporation was founded in 1971 and is headquartered in Memphis, Tennessee.