FedEx reported full fiscal year 2026 revenue of $94.7 billion, up 7.7% from the prior year, driven by growth in parcel and delivery services [1]. Adjusted diluted earnings per share rose 11.3% to $20.24, while adjusted operating profit reached $6.61 billion for the year [1].
For the fourth quarter, revenue increased 12.6% year-over-year to $25 billion. Adjusted diluted EPS climbed 3.9% to $6.31 for Q4 2026 [1, 2]. However, the Federal Express core delivery segment saw its operating margin fall to 7.7% in Q4 from 8.4% the previous year. FedEx attributed this decline to rising employee salaries and benefits, outsourced transportation, and fuel costs [3, 2].
On June 1, FedEx spun off its trucking unit, FedEx Freight, focusing future operations on delivery and parcel segments [3, 2]. The company said the market will need time to adjust to the spin-off and its shift to a calendar-year fiscal reporting period. JP Morgan analysts noted, "We recognize FedEx could experience an overhang during the time it will take for the market to sort through the different moving pieces of the Freight spin-off and shift to a calendar year reporting period" [3]. Morgan Stanley analysts added, "It will be difficult to judge numbers for a few quarters given the noise, but focus will be on fundamental debates" [3].
FedEx cited challenges from changes in global trade policies. The loss of duty-free treatment for low-value cross-border e-commerce shipments from China-related sellers negatively impacted volume [3, 2]. Following the earnings release June 23, FedEx's stock dropped about 6-7% due to investor concerns over margin pressures and spin-off uncertainties [3, 2].
FedEx CFO Claude Russ said the company expects margins to improve as payroll-related burdens ease, stating, "隨著薪酬相關負擔下降，利潤率將逐步改善。" [2]. The company also announced a share buyback program of up to $1 billion to take place within 2026 [2].
FedEx forecasted adjusted EPS for fiscal 2027 to be between $16.90 and $18.10 per share, reflecting alignment with the calendar year fiscal schedule [3, 2]. The next key update will occur with the release of fiscal 2027 quarterly results in 2027.
