- FedEx’s forecast for fiscal year adjusted earnings per share (EPS) ranges from $17.20 to $19, with an estimated average of $18.25.
- Expected capital expenditure remains at $4.5 billion, which aligns with estimates.
- For the first quarter, adjusted EPS reached $3.83, surpassing last year’s $3.60 and the estimate of $3.59.
- First quarter revenue increased 2.8% year over year to $22.2 billion, exceeding the estimate of $21.67 billion.
- Federal Express division revenue grew 4.4% to $19.12 billion, above the $18.47 billion estimate.
- FedEx Freight revenue decreased by 3.1% to $2.26 billion, slightly below the estimate of $2.27 billion.
- Adjusted operating income rose by 7.4% year over year to $1.30 billion, exceeding the estimate of $1.21 billion.
- The adjusted operating margin improved to 5.8% from 5.6% last year, surpassing the estimated 5.62%.
- FedEx anticipates fiscal 2026 revenue growth of 4% to 6%.
- The company plans to spin off FedEx Freight by June 2026.
- FedEx is unable to provide an EPS or effective tax rate outlook for fiscal 2026 on a GAAP basis due to an inability to forecast mark-to-market retirement plan accounting adjustments.
- Results were adversely affected by a non-recurring income tax expense of $16 million, or $0.07 per diluted share, primarily due to an examination of prior-year tax return filings.
FedEx Corp on Smartkarma
Analysts on Smartkarma, including Baptista Research, have been closely following FedEx Corporation’s performance. In their recent report titled “FedEx’s $600 Million Secret: Cost Cuts, Controversy, and a Game-Changing Split!“, analysts highlighted the company’s third-quarter fiscal 2025 performance. The report emphasizes a balanced mix of operational successes and challenges, showcasing a 2% year-over-year revenue increase driven by operational efficiency initiatives such as the DRIVE savings program, which achieved $600 million in savings for the quarter. This efficiency boost led to a 12% increase in adjusted operating income and a 17% rise in adjusted EPS compared to the previous year.
A look at FedEx Corp Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.2 |
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 balanced long-term outlook. The company scores a 3 in Value, Dividend, Growth, and Resilience, indicating solid performance across these key factors. In terms of Momentum, FedEx Corp scores a 4, suggesting a strong upward trend in the company’s stock price. With a well-rounded scorecard, FedEx Corp appears positioned for steady growth and stability in the future.
FedEx Corp is a global leader in delivering packages and freight across the world. The company offers a wide range of services including express delivery, small-parcel delivery, freight delivery, supply chain management, customs brokerage, and e-commerce solutions. With its diversified portfolio of services and a solid Smartkarma Smart Scores profile, FedEx Corp is well-equipped to navigate market dynamics and maintain its position as a key player in the logistics industry.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Analytics and News
- ✓ Events & Webinars
