FedEx Corporation Q3 2026 Earnings Recap

FedEx raised its calendar 2026 outlook after a quarter of revenue and adjusted operating income growth, while the stock rose a relatively modest 1.1% after earnings. The outlook and results were positive, but the market reaction was roughly flat by the stated threshold.

Key Takeaways

• Revenue increased 12% year over year and adjusted operating income grew 16%, according to the company.
• Express U.S. Domestic revenue rose 10% and adjusted operating income 7%; Express International revenue rose 17% and adjusted operating income 52%.
• FedEx raised and tightened its calendar 2026 adjusted EPS outlook to $18–$18.60 and expects approximately $4 billion in adjusted free cash flow.
• Network 2.0 now covers nearly 65% of eligible volume across about 630 optimized stations; FedEx expects nearly $1 billion of Network 2.0 and associated One FedEx savings by year-end.
• The company has repurchased $2 billion of its stock since June and is targeting a $650 million Europe-driven improvement in International adjusted operating income by the end of 2029.