FedEx Corporation (NYSE:FDX) reported third-quarter financial results Wednesday after market close.
Here are the highlights.
FedEx Q3 Financials
FedEx reported third-quarter revenue of $22.90 billion, up 12.3% year-over-year. The revenue total beat a Street consensus estimate of $22.54 billion, according to data from Benzinga Pro.
The company reported adjusted earnings per share of $3.74, beating a Street consensus estimate of $3.36.
FedEx said the quarterly results include increased package base yields and higher package volumes offset by increased transportation rates and higher wages.
The company completed the spin-off of FedEx Freight (NYSE:FDXF) on June 1. FedEx retains a 19.9% ownership interest in the company. A loss of $1.2 billion was recognized in the quarter on short-term investment for the income statement for this ownership.
“FedEx is winning across high-value market segments while we optimize our network, driving an increase to our full-year outlook,” FedEx CEO Raj Subramaniam said.
What’s Next for FedEx
The company completed the sale of its FedEx Supply Chain business for $1.4 billion to CMA CGM Group. The company said this was another important step in unlocking shareholder value.
FedEx is raising parcel shipping rates by an average of 5.9% effective Jan. 4, 2027.
The company updated its full-year guidance, now expecting revenue growth of around 12%, up from a prior guide of growth of around 11%.
FedEx now sees adjusted earnings per share of $18 to $18.60 for the full year based on the spinoff and other moves. This is up from a prior range of $16.90 to $18.10.
“We remain committed to disciplined operational execution to reduce our cost-to-serve while focusing on profitable growth. We have the right strategy in place to continue to be the world’s premier B2B parcel and air freight provider, leverage our digital insights to unlock new markets, and use disciplined capital allocation to create additional stockholder value,” Subramaniam said.
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FedEx Stock Price Action
FedEx stock is down 2.82% to $296 in after-hours trading Wednesday versus a 52-2eek trading range of $199.31 to $345.37.
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