Shares of FedEx (NYSE:FDX) rose in premarket U.S. trading Friday after the Memphis-based shipping giant reported quarterly earnings that exceeded Wall Street forecasts and issued a full-year outlook aligning with analyst estimates.
The company’s focus on reducing costs helped offset weak international volumes, particularly after the expiration of a tariff exemption for certain low-value products shipped directly to consumers.
As part of a plan to cut $1 billion in expenses this fiscal year, FedEx has closed facilities, reorganized divisions, and grounded some aircraft. These measures, along with signs of consumer resilience amid concerns over tariff-driven price hikes, boosted the company’s closely watched operating margin.
FedEx posted first-quarter earnings of $3.83 per share, surpassing the analyst consensus of $3.68, on revenue of $22.2 billion, compared with expected revenue of $21.69 billion.
For fiscal 2026, FedEx projected earnings per share of $17.20 to $19.00, close to Wall Street’s $18.25 forecast. Excluding certain accounting and restructuring costs, EPS is expected to range from $14.20 to $16.00.
The company anticipates revenue growth of 4% to 6% year-on-year and plans to maintain capital spending at $4.5 billion, prioritizing network optimization and automation. Pension contributions were reduced to up to $400 million from a prior $600 million, and the effective tax rate forecast remains at 25%.
“Our first quarter results demonstrate our commitment to improving stockholder returns while executing on our strategic initiatives,” Chief Financial Officer John Dietrich said in a statement.
Analysts at Jefferies added: “Coming after the fourth-quarter double-whammy of a miss and no guide, we’re pleased by the fiscal first-quarter results, which came in better than feared and also came with a full-year 2026 outlook to help investors frame earnings expectations for the year.”
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