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Aug 31, 2025
FedEx Q1 2026 Earnings Report
FedEx posted earnings growth in Q1 2026 driven by stronger U.S. domestic package revenue and continued cost reductions.
Key Takeaways
FedEx reported solid Q1 2026 results with higher earnings and revenue, aided by improved domestic performance and transformation initiatives.
Reported revenue rose to $22.2 billion, up from $21.6 billion a year earlier.
Adjusted EPS came in at $3.83, above the GAAP EPS of $3.46.
Net income increased to $820 million, with adjusted net income at $910 million.
FedEx repurchased $500 million in shares during the quarter, reducing share count by 2.2 million.
Forward Guidance
FedEx reaffirmed FY2026 guidance with EPS expected between $14.20 and $16.00 (excluding MTM adjustments), supported by structural cost savings and a focus on efficiency.
Positive Outlook
- Reaffirmed FY26 EPS guidance before MTM adjustments: $14.20–$16.00.
- Expecting 4–6% revenue growth YoY.
- Planned cost reductions of $1 billion through transformation initiatives.
- Capital spending of $4.5 billion focused on efficiency and modernization.
- FedEx Freight spin-off on track for June 2026.
Challenges Ahead
- Outlook excludes MTM retirement plan adjustments due to unpredictability.
- Higher wage and transportation costs remain a pressure point.
- FedEx Freight segment performance declined YoY.
- Expiring USPS contract impacted international package volume.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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