# FedEx raises annual outlook as quarterly revenue grows

- **Source:** https://pelavox.com/fedex-raises-annual-outlook-as-quarterly-revenue-grows/
- **Publisher:** pelavox. (The voice of shipping)
- **Author:** Helena Pierce
- **Published:** 2026-10-30T03:00:00+00:00
- **Updated:** 2026-10-29T09:49:50+00:00
- **Section:** Business / Company Results
- **Type:** News
- **Topics:** Air Freight, CMA CGM, FedEx, FedEx Earnings, FedEx Freight, Financial Results, Freight Transportation, Logistics, Supply Chain, United States

FedEx reported higher revenue and operating income for the third quarter of 2026, supported by stronger package yields, increased shipping volumes and cost reductions, while raising its financial outlook for the full calendar year.

The US transportation and logistics group generated revenue of $22.9 billion for the three months ended September 30, compared with $20.4 billion in the corresponding period of 2025, representing an increase of approximately 12%. Reported operating income rose to $1.07 billion from $972 million, while adjusted operating income increased to $1.20 billion from $1.03 billion.

Despite the improvement in operating performance, reported net income from continuing operations declined to $290 million from $645 million a year earlier. Adjusted net income, which excludes specified financial and restructuring items, increased to $896 million from $693 million, with adjusted diluted earnings per share rising to $3.74 from $2.93.

The difference between reported and adjusted results primarily reflects financial items associated with the company’s restructuring, including a $1.2 billion loss on the valuation of its retained investment in FedEx Freight and a gain related to debt extinguishment.

## Freight operations and revised outlook

FedEx’s Express U.S. Domestic segment reported quarterly revenue of $14.71 billion, up 10% year on year, while operating income increased to $946 million from $884 million. Average daily domestic package volume rose by 2%, supported by growth in priority and commercial ground shipments.

The Express International segment recorded revenue of $7.47 billion, an increase of 17%, with operating income reaching $220 million compared with $192 million in the previous year. International freight revenue increased by 28%, while average daily international freight weight rose by 15%, reflecting higher volumes across priority and economy services.

The company attributed its stronger operating performance to improved package yields, higher volumes and ongoing structural cost reductions. These benefits were partly offset by increased purchased transportation costs, higher wages and the financial effects of changes in global trade policies.

FedEx subsequently raised its forecast for calendar year 2026 revenue growth to approximately 12%, compared with its previous expectation of 11%. The company also increased its adjusted diluted earnings per share forecast from $16.90–$18.10 to $18.00–$18.60, while maintaining planned capital expenditure of $3.9 billion.

Raj Subramaniam, President and Chief Executive Officer of FedEx, said the company’s operating results and adjusted free cash flow supported the decision to raise its annual outlook, as the group continues to optimise its transportation network and reduce operating costs.

## Portfolio restructuring and capital allocation

The results follow several changes to FedEx’s corporate structure. On June 1, 2026, the company completed the separation of FedEx Freight into an independent publicly traded business, retaining a 19.9% ownership interest.

On October 1, FedEx also completed the sale of FedEx Supply Chain to CMA CGM Group for approximately $1.4 billion. The transaction forms part of the company’s strategy to simplify its business portfolio and concentrate resources on its core transportation operations.

During the June–September period, FedEx repurchased $2 billion of its shares. Cash holdings stood at approximately $8 billion at the end of September, including around $2.7 billion in tariff refunds held for repayment to customers.

The company has also announced an average 5.9% increase in parcel shipping rates, effective January 4, 2027.

FedEx’s revised outlook assumes current economic and fuel price expectations and does not account for additional adverse developments in global trade, geopolitical conditions or the wider economy.

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Cite as: "FedEx raises annual outlook as quarterly revenue grows", pelavox., 30 October 2026, https://pelavox.com/fedex-raises-annual-outlook-as-quarterly-revenue-grows/