FedEx beats expectations with record earnings and raised forecasts

FedEx has reported stronger-than-expected financial results for its third fiscal quarter, sending its shares up by 8% in after-hours trading. The company also raised its annual earnings forecast, beating earlier market predictions. Investors reacted positively to the news, which included higher revenues and improved cost management.

The delivery giant posted adjusted earnings of $5.25 (around €4.45) per share, well above the $4.14 analysts had expected. Revenue for the quarter reached $24 billion, surpassing the $23.4 billion forecast. The strong performance came from higher pricing, increased package volumes in the U.S., and continued cost-cutting efforts.

Despite these gains, FedEx faced challenges, including the grounding of its 28 MD-11 aircraft due to safety concerns. This disruption impacted operations, though the company expects the full fleet to return by the end of May. Additionally, rising air cargo rates caused by the Middle East conflict affected about 8% of its international export volume. FedEx now projects annual adjusted earnings of $19.30 to $20.10 per share, up from its previous range of $17.80 to $19.00. This new forecast exceeds analysts' earlier estimate of $18.69 per share. The company also raised its revenue growth outlook for the fiscal year to between 6.0% and 6.5%. In March 2026, FedEx overtook rival UPS in market capitalisation for the first time, reaching approximately $82.23 billion. This shift followed a 25% rise in FedEx's stock over the year, while UPS saw a 2% decline in the same period.

The latest results and revised forecasts suggest FedEx is on stronger footing than previously expected. With its fleet set to return and demand holding steady, the company appears well-positioned for the rest of the fiscal year. Shareholders have already responded with increased confidence in the business.