- FedEx reported adjusted earnings per share (EPS) of $4.82 for the second quarter, surpassing last year’s $4.05 and estimates of $4.12.
- The company’s revenue reached $23.5 billion, which is a 6.8% increase compared to the previous year, and exceeded the estimate of $22.8 billion.
- Federal Express segment revenue rose by 8.4% year-over-year to $20.43 billion, beating the estimated $19.72 billion.
- FedEx Freight revenue slightly decreased by 1.7% to $2.14 billion, aligning with estimates.
- Adjusted operating income climbed by 17% to $1.61 billion, surpassing the estimated $1.36 billion.
- The adjusted operating margin improved to 6.9% from last year’s 6.3%, outperforming the forecasted 6.07%.
- FedEx forecasts its 2026 adjusted EPS to be in the range of $17.80 to $19, slightly adjusted from the previous projection of $17.20 to $19, compared to the estimate of $18.28.
- Capital expenditure for 2026 is expected to be $4.5 billion, consistent with the prior estimates.
- The company now projects a 5% to 6% annual revenue growth rate, up from the previous forecast of 4% to 6%.
- FedEx reaffirms achieving $1 billion in permanent cost reductions through transformation-related savings from structural cost reductions and the advancement of Network 2.0.
FedEx Corp on Smartkarma
On Smartkarma, independent analysts like Baptista Research are providing valuable insights into FedEx Corp. Baptista Research recently published a bullish report titled “FedEx Battles $1B Trade Headwinds With Smart Strategy!” analyzing FedEx’s first-quarter results for fiscal 2026. The report highlights a 3% year-over-year revenue increase driven by strong performance in U.S. domestic package services. However, challenges persist for FedEx due to global trade uncertainties and the expiration of a key contract with the U.S. Postal Service, impacting the company’s financial outlook.
A look at FedEx Corp Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 3 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.6 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores, FedEx Corp seems to have a positive long-term outlook. With a strong score of 4 for Growth and 5 for Momentum, the company appears to be well-positioned for future expansion and market performance. Additionally, its Value, Dividend, and Resilience scores of 3 indicate a solid foundation and stability in the company’s financial health. Overall, FedEx Corp‘s efficient global network and diversified range of services could contribute to its continued growth and success in the delivery and logistics industry.
FedEx Corp, a global leader in package delivery and logistics services, operates a comprehensive network that spans across various countries and territories. Offering a wide range of delivery options, supply chain management services, and e-commerce solutions, the company remains a key player in the global logistics market. With strong scores in Growth and Momentum, FedEx Corp is poised to leverage its established presence and innovative solutions for sustained growth and performance in the long term.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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