Fedex 2026 Q1 Earnings Sustained Profitability and EPS Growth of 7.4%

FedEx (FDX) reported its fiscal 2026 Q1 earnings on September 18, 2025. The results showed a continuation of strong operational performance amid global trade volatility, with earnings and revenue both growing year-over-year. The company exceeded expectations in profitability and maintained its long-standing record of consistent quarterly earnings, reinforcing investor confidence.

FedEx generated $22.24 billion in total revenue for Q1 2026, a 3.1% increase compared to $21.58 billion in the same period last year. The Federal Express segment accounted for the bulk of the revenue at $19.12 billion, with FedEx Freight contributing $2.26 billion. The Corporate, other, and eliminations segment added $871 million, rounding out the total.

FedEx reported a net income of $824 million in Q1 2026, representing a 3.8% increase from $794 million in Q1 2025. Earnings per share (EPS) rose 7.4% to $3.48 from $3.24 a year ago, reflecting continued margin improvement and cost discipline. This marks the 21st consecutive year of positive earnings in the same quarter, underscoring the company’s resilience and operational efficiency.

The stock price of FedEx edged down 0.61% during the latest trading day, 1.01% over the most recent full trading week, and 0.54% month-to-date. While the shares declined slightly in the immediate post-earnings period, the broader market context and investor sentiment appear to reflect cautious positioning rather than a direct reaction to the earnings results.

Following the earnings release, CEO Raj Subramaniam highlighted the company’s “solid” Q1 performance, emphasizing the resilience of FedEx’s global network and ongoing cost-cutting initiatives. He pointed to progress on transformational strategies like Network 2.0 and Tricolor, which aim to enhance service efficiency and reduce operating costs. Subramaniam also noted the company’s investment in digital tools to drive growth in high-value sectors and underscored the role of data and AI in future revenue models. His tone was cautiously optimistic, acknowledging current freight challenges but expressing confidence in long-term growth and adaptability.

For FY2026, FedEx expects adjusted EPS to range between $17.20 and $19.00, with a midpoint of $18.10. The guidance assumes 5% revenue growth, $1 billion in transformation savings, and a 25% tax rate. Segment expectations include 6% growth for FedEx Express (FEC) with margin expansion, and flat to slightly higher revenue for FedEx Freight. Capital expenditures remain targeted at $4.5 billion annually, with the outlook incorporating potential headwinds from global trade volatility, the U.S. Postal Service contract expiration, and timing of industrial recovery.

Additional News
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