FedEx (NYSE:FDX – Get Free Report) announced its quarterly earnings data on Tuesday. The shipping service provider reported $6.31 EPS for the quarter, beating the consensus estimate of $5.91 by $0.40, Zacks reports. The firm had revenue of $25.01 billion during the quarter, compared to analysts’ expectations of $24.04 billion. FedEx had a net margin of 4.88% and a return on equity of 16.76%. The business’s revenue for the quarter was up 12.5% compared to the same quarter last year. During the same quarter last year, the business earned $6.07 earnings per share. FedEx updated its FY 2027 guidance to 16.900-18.100 EPS.
Here are the key takeaways from FedEx’s conference call:
- FedEx reported a strong FY2026, with revenue and adjusted operating income both up 8% for the year and adjusted EPS of $20.24, while Q4 adjusted EPS of $6.31 came in above the high end of guidance.
- The company said its transformation efforts are paying off, noting it exceeded the $1 billion transformation-savings target and remains on track for $2 billion of savings by CY2027.
- Management highlighted continued strength in premium business-to-business and high-value consumer segments, with FEC revenue up 14% in Q4 and gains across healthcare, automotive, aerospace, and data center-related demand.
- FedEx initiated calendar-year 2026 guidance for adjusted EPS of $16.90 to $18.10, implying about 20% growth in the June-to-December transition period, and expects revenue growth of roughly 11%.
- FedEx Freight was spun off on June 1, and the company said it expects to monetize its remaining stake tax-efficiently within 24 months while separately addressing stranded costs and other transition items over time.
FedEx Trading Down 3.0%
Shares of FedEx stock opened at $319.06 on Wednesday. The company has a debt-to-equity ratio of 0.77, a current ratio of 1.47 and a quick ratio of 1.44. FedEx has a 1 year low of $172.88 and a 1 year high of $345.36. The company has a market capitalization of $76.13 billion, a P/E ratio of 16.98, a P/E/G ratio of 1.49 and a beta of 1.28. The business has a 50 day moving average price of $366.57 and a 200 day moving average price of $345.88.
FedEx Cuts Dividend
Key Headlines Impacting FedEx
Here are the key news stories impacting FedEx this week:
- Positive Sentiment: FedEx delivered a solid fiscal Q4 beat, reporting revenue of about $25.0 billion and EPS above estimates, supported by stronger package volumes, premium revenue growth, and better cash flow. FedEx Reports Strong Fourth Quarter and Full-Year Results
- Positive Sentiment: Management highlighted cost savings, margin-improvement efforts, and the ability to grow revenue despite tariff and trade headwinds, suggesting the company’s turnaround strategy is still working. FedEx Revenue Rises on Growth in Package Yields, Volume
- Neutral Sentiment: FedEx is entering a “new phase” after spinning off its freight business, and investors are evaluating whether the remaining parcel business can sustain growth and efficiency gains on its own. FedEx drops on margin hit as investors gauge freight spin-off fortunes
- Negative Sentiment: The main drag on the stock is FedEx’s fiscal 2027 EPS guidance, which came in below analyst expectations, raising concerns that profit growth may slow after a strong quarter. FedEx shares drop on weak profit forecast as Q4 results top estimates
- Negative Sentiment: Some investors are also worried about a margin squeeze at the core delivery segment and complications tied to the freight spinoff, which could make the transition period choppier than expected. FedEx drops on margin hit as investors gauge freight spin-off fortunes
Insider Buying and Selling
In other news, EVP Kawal Preet sold 4,900 shares of the business’s stock in a transaction on Tuesday, April 14th. The stock was sold at an average price of $367.89, for a total value of $1,802,661.00. Following the completion of the transaction, the executive vice president directly owned 10,953 shares of the company’s stock, valued at $4,029,499.17. The trade was a 30.91% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, EVP Gina F. Adams sold 20,450 shares of the stock in a transaction on Tuesday, April 14th. The shares were sold at an average price of $366.45, for a total value of $7,493,902.50. Following the sale, the executive vice president directly owned 19,403 shares in the company, valued at approximately $7,110,229.35. The trade was a 51.31% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 48,104 shares of company stock worth $17,599,006 in the last 90 days. Corporate insiders own 0.53% of the company’s stock.
Institutional Inflows and Outflows
Several institutional investors have recently added to or reduced their stakes in the company. EFG International AG acquired a new stake in shares of FedEx during the 4th quarter worth about $27,000. Wilkerson Advisory Group LLC acquired a new position in shares of FedEx in the fourth quarter valued at approximately $29,000. Intesa Sanpaolo Wealth Management purchased a new position in shares of FedEx during the fourth quarter valued at approximately $33,000. Wealth Watch Advisors INC purchased a new position in shares of FedEx during the third quarter valued at approximately $28,000. Finally, Uniplan Investment Counsel Inc. acquired a new stake in FedEx during the fourth quarter worth approximately $36,000. Institutional investors and hedge funds own 84.47% of the company’s stock.
Wall Street Analysts Forecast Growth
A number of research analysts have issued reports on FDX shares. Raymond James Financial began coverage on shares of FedEx in a report on Wednesday, June 3rd. They issued an “outperform” rating and a $180.00 target price for the company. HSBC lowered their price target on FedEx from $360.00 to $289.89 and set a “hold” rating on the stock in a report on Monday, June 1st. BNP Paribas Exane dropped their price objective on FedEx from $335.00 to $269.76 and set a “neutral” rating for the company in a research note on Tuesday, June 2nd. Jefferies Financial Group began coverage on FedEx in a report on Tuesday. They set a “buy” rating and a $200.00 price objective for the company. Finally, Rothschild & Co Redburn lowered their target price on FedEx from $375.00 to $344.00 and set a “neutral” rating on the stock in a report on Tuesday, June 2nd. Eighteen analysts have rated the stock with a Buy rating, nine have issued a Hold rating and two have given a Sell rating to the company’s stock. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target of $358.14.
Read Our Latest Analysis on FDX
About FedEx
FedEx Corporation (NYSE: FDX) is a global logistics and courier company headquartered in Memphis, Tennessee. Founded by Frederick W. Smith in 1971 and beginning operations in the early 1970s, the company pioneered overnight express shipping and has since expanded into a diversified portfolio of transportation, e-commerce and supply-chain services. FedEx operates an integrated air-and-ground network that moves parcels, freight and documents for businesses and consumers worldwide.
FedEx’s core operating segments include express parcel delivery via its FedEx Express division, domestic and residential parcel delivery through FedEx Ground, less-than-truckload (LTL) freight services, and logistics and supply-chain management solutions.
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