$FDX earnings report

FedEx reported broad top-line growth in the third quarter ended September 30, 2026. Total revenue rose 12% to $22.9 billion, with Express U.S. Domestic revenue up 10% to $14,710 million and Express International revenue up 17% to $7,465 million. U.S. Domestic growth reflected both volume and pricing, as total U.S. domestic average daily package volume increased 2% and composite revenue per package increased 7%. International revenue growth was supported by a 17% increase in composite package yield and 28% growth in freight revenue, despite a 4% decline in total international average daily package volume.

Profitability improved on an adjusted basis. GAAP operating income rose 10% to $1.07 billion and adjusted operating income increased to $1.20 billion from $1.03 billion, while adjusted operating margin expanded to 5.3% from 5.1%. Express U.S. Domestic operating income increased 7% to $946 million, although its GAAP operating margin declined to 6.4% from 6.6%. Express International operating income increased 15% to $220 million, while its GAAP operating margin declined to 2.9% from 3.0%. The release attributes operating improvement to yields, volumes, service mix, and structural cost reductions, while purchased transportation, wage rates, variable compensation, fuel, and trade-policy impacts remained offsets.

GAAP earnings were heavily affected by FedEx Freight-related items. Net income was $290 million, down 68%, and GAAP diluted EPS was $1.21, down 69%. The company recognized a $1,238 million loss on its retained FedEx Freight investment in the quarter, while also recording a $627 million non-GAAP, pre-tax gain on debt extinguishment. Adjusted diluted EPS from continuing operations increased to $3.74 from $2.93. FedEx completed the FedEx Freight spin-off on June 1, 2026, retained a 19.9% ownership interest, and reported a $3.3 billion carrying value for the equity security at September 30, 2026.

Cash deployment was significant. FedEx repurchased $2.0 billion of stock in June through September, covering approximately 6.3 million shares, and reported $4.3 billion remaining under its 2026 repurchase authorization. Nine-month operating cash flow was $7,448 million, while the company reported $7,961 million of cash and cash equivalents and $17,304 million of long-term debt, less current portion, at September 30. FedEx also used FedEx Freight dividend proceeds and cash on hand for tender offers on approximately $4.9 billion aggregate principal amount of debt securities.

FedEx raised its calendar 2026 revenue-growth forecast to ~12% YoY from ~11% and increased adjusted diluted EPS guidance to $18.00 to $18.60 from $16.90 to $18.10 per diluted share. The company forecasts GAAP diluted EPS from continuing operations of $35.30 to $35.90, an effective tax rate of ~22.5%, $475 million of pension contributions, and $3.9 billion of capital spending. The outlook excludes specified mark-to-market, debt-extinguishment, restructuring, and tax items and assumes no additional adverse economic, geopolitical, or international trade-related developments.

This filing supplies recast historical information rather than a current-period earnings release. FedEx changed its fiscal year-end from May 31 to December 31 and will report a seven-month Transition Period from June 1, 2026 through December 31, 2026. The figures also recast FedEx Freight as discontinued operations after the June 1, 2026 Spin-Off and establish Express U.S. Domestic and Express International as new reportable segments.

For the Second Quarter calendar 2026, total revenue was $22,930 million, compared with $20,788 million in the First Quarter calendar 2026. GAAP operating income was $1,327 million and GAAP operating margin was 5.8%, versus $919 million and 4.4%, respectively, in the First Quarter calendar 2026. Adjusted operating income was $1,622 million and adjusted operating margin was 7.1%, with $295 million of restructuring, exit and other costs excluded.

The U.S. Domestic business reported $14,927 million of revenue, $1,379 million of GAAP operating income, and a 9.2% GAAP operating margin. Its total U.S. domestic average daily package volume was 14,317 thousand and total U.S. domestic composite yield was $15.65. International reported $7,335 million of revenue, but its $108 million of GAAP operating income and 1.5% GAAP operating margin remain the key segment-level contrast with U.S. Domestic. International total average daily package volume was 2,854 thousand, while composite package yield was $29.98.

Reported GAAP earnings were materially affected by items outside core operations. Income from continuing operations was $6,074 million and diluted EPS from continuing operations was $25.05. The non-GAAP reconciliation identifies a $4,492 million gain on the retained FedEx Freight investment and a $604 million MTM retirement plans accounting adjustment. On the adjusted continuing-operations basis, net income was $1,207 million and diluted EPS was $4.98.

The release contains no forward financial guidance, cash flow figures, cash balance, debt balance, or share-repurchase data. The main reported strategic developments are the FedEx Freight separation, the expected reduction of retained stranded costs through transition services agreements and cost management, and the October 1, 2026 sale of FedEx Supply Chain to CMA CGM Group for $1.4 billion.