Q3 2026 FedEx Corp Earnings Call Transcript
Key Points
- FedEx Corp (FDX) reported an 8% year-over-year increase in revenue, driven by yield and volume strength across nearly all package services.
- The company achieved a 7% increase in adjusted operating income year-over-year, overcoming challenges such as changing global trade policies and weather-related service constraints.
- FedEx Corp (FDX) grew revenue by 10% at Federal Express Corporation (FEC) and expanded adjusted operating margin by 50 basis points, marking the sixth consecutive quarter of margin expansion.
- The company is on track to achieve $2 billion in cumulative savings from Network 2.0 and associated One FedEx initiatives by the end of 2027.
- FedEx Corp (FDX) raised its FY26 adjusted earnings outlook to $19.30 to $20.10 per diluted share, reflecting strong Q3 performance and positive trends expected to continue into Q4.
- FedEx Freight's results remain pressured due to ongoing LTL industry trends and increased separation-related expenses.
- The grounding of the MD-11 fleet led to a $120 million headwind in adjusted operating income for the quarter.
- FedEx Freight experienced a 5% decline in revenue, pressured by lower shipments and continued challenging LTL industry trends.
- The company anticipates a year-over-year headwind in Q4 of up to $55 million due to the continued impact of the MD-11 grounding.
- FedEx Corp (FDX) expects an EPS headwind from share dilution and higher interest costs due to recent debt issuance by FedEx Freight.
Good day, and welcome to the FedEx third-quarter fiscal 2026 earnings call. (Operator Instructions) Please note, this event is being recorded.
I would now like to turn the conference over to Jeni Hollander, Vice President, Investor Relations. Please -- .
Good afternoon, and welcome to FedEx Corporation's third-quarter earnings conference call. The third quarter earnings release, Form 10-Q and stat book are on our website at investors.fedex.com. This call and the accompanying slides are being streamed from our website. (Operator Instructions)
Certain statements in this conference call may be considered forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements.
For additional information on these factors,
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
