FedEx Stock Surges Over 5% as Q1 Earnings Outperform Wall Street Estimates
FedEx Stock Surges Over 5% as Q1 Earnings Outperform Wall Street Estimates
FedEx shares climbed more than 5% in after-hours trading on Thursday after the package delivery giant reported fiscal first-quarter earnings that significantly surpassed Wall Street’s expectations. The company demonstrated strong financial performance despite a challenging global trade environment.
For the first fiscal quarter, which concluded on August 31, FedEx posted adjusted earnings per share of $3.83, comfortably beating analysts’ estimates of $3.59. Revenue also came in strong at $22.24 billion, exceeding the anticipated $21.66 billion. Net income for the quarter stood at $820 million, or $3.46 per share, up from $790 million in the prior-year period.
CEO Raj Subramaniam attributed the robust results to the resilience built into FedEx’s network and the dedication of its team. “Despite significant volatility and uncertainty around the global trade environment, our results demonstrate the resilience we have built into our network,” Subramaniam stated during a call with analysts.
Looking ahead, FedEx projects revenue growth for fiscal year 2026 in the range of 4% to 6%, well above Wall Street’s 1.2% estimate. The company also provided an outlook for full-year earnings per share for fiscal year 2026 between $17.20 and $19.
The company acknowledged incurring $150 million in headwinds during the first quarter, primarily due to the global elimination of the “de minimis” exception last month, which previously allowed duty-free shipments under $800 into the U.S. However, FedEx noted it leveraged prior experience to help shippers navigate this change effectively. The ongoing spin-off of FedEx Freight into a new publicly traded entity is expected to be completed by June 2026.
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