FedEx jumps after boosting full-year profit forecast

FedEx is up more than 7% in early trading on Friday after the delivery company posted strong sales and boosted its full-year guidance in its Q3 earnings results, released Thursday.

For fiscal year 2026, ending May 31, the company raised its:

• Revenue growth forecast, to be between 6% and 6.5% year over year, up from 5% to 6% previously and topping analyst estimates for 5.9% growth (compiled by Bloomberg).

• Adjusted earnings per share (excluding certain costs, including a planned spin-off of the Freight segment), to be between $19.30 to $20.10, up from a previous range of $17.80 to $19.00.

FedEx also reported better-than-expected results for the quarter ended February 28, 2026, including:

• Revenue of $24 billion, about 2% ahead of analyst forecasts of $23.5 billion.

• Diluted adjusted EPS of $4.41, also above Wall Street estimates of $4.17.

Celebrating “another quarter of strong financial results,” in the press release the company’s management highlighted its main Express segment, improved by “higher U.S. domestic and International Priority package yields, continued cost savings from transformation initiatives, and increased U.S. domestic package volume.” The company is planning a spin-off of its Freight division into a new publicly traded company on June 1, 2026.

Often seen as something of a bellwether, owing to its billions of touchpoints across both consumers and enterprises, FedEx’s results may offer some light relief to investors that the American consumption machine is still on track.