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2w ago

FedEx Beats Q1, Restores Outlook, Flags $1 Billion Trade Hit

The restored outlook reflects cost cuts with rising U.S. volumes offsetting new tariff pressures.

A FedEx last-mile delivery van is seen near a FedEx Ground distribution center in Carson, California, U.S., September 16, 2022. REUTERS/Bing Guan/File Photo
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Overview

  • Adjusted EPS came in at $3.83 on revenue of about $22.2 billion, topping Wall Street estimates for fiscal Q1 2026.
  • FedEx reinstated full-year guidance, projecting 4%–6% revenue growth and adjusted EPS of $17.20 to $19.00 after suspending its outlook in June.
  • The end of the de minimis exemption and related trade shifts are expected to create roughly a $1 billion FY26 headwind, including a $150 million hit in Q1, with international export volumes down about 3%.
  • U.S. average daily volumes rose roughly 5% and the operating margin improved to about 6%, supported by ongoing network consolidation and a $1 billion permanent cost-savings program for FY26.
  • Management said the FedEx Freight spin-off remains on track for mid-2026 as shares rose roughly 5%–6% in after-hours and premarket trading following the report.