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7h ago

FedEx Tops Q1 Estimates, Guides 2026 EPS Below Street on De Minimis Repeal

Management expects the end of duty-free treatment for sub-$800 imports to pressure volumes despite ongoing cost cuts.

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A FedEx truck is driven through downtown in Los Angeles, California, U.S., July 22, 2019. REUTERS/Mike Blake/File Photo
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Overview

  • FedEx reported adjusted earnings of $3.83 per share on revenue of $22.2 billion for the quarter ended Aug. 31, beating LSEG forecasts on both metrics.
  • The company projected fiscal 2026 adjusted EPS of $17.20 to $19.00, with a midpoint of $18.10 that sits just below the $18.21 consensus compiled by LSEG.
  • U.S. authorities ended the de minimis duty exemption for China and Hong Kong on May 2 and extended the removal to all countries on Aug. 29, an impact FedEx expects to show in results over the coming quarters.
  • About three-quarters of roughly 1.4 billion annual low-value shipments had entered the U.S. under the now-ended program, signaling potential pressure on cross-border e-commerce volumes.
  • Shares rose about 5% to 6% in extended trading as FedEx emphasized a $1 billion cost-savings plan for the fiscal year and continued work on a FedEx Freight spinoff targeted for June 2026.