FedEx reported strong third quarter results driven by solid operational execution, cost savings from transformation initiatives, and improved yields. The company raised its full-year earnings outlook and is on track for the FedEx Freight spin-off, indicating positive momentum and strategic progress.
Total Revenue increased 8% year-over-year to $24.0 billion.
positiveDiluted EPS increased 17% year-over-year to $4.41.
positiveFederal Express segment operating income increased 21% to $1.57 billion, with operating margin improving by 70 bps to 7.4%.
positiveRaised full-year fiscal 2026 diluted EPS outlook to $16.05-$16.85 (before MTM adjustments).
positiveCash provided by operating activities increased to $5.66 billion for the nine months ended Feb 28, 2026, up from $4.52 billion in the prior year.
positiveFedEx Freight segment operating income decreased 97% year-over-year to $8 million, with operating margin compressing from 12.5% to 0.4%.
negativeFedEx Freight segment revenue decreased 5% year-over-year to $1.99 billion.
negativeBusiness optimization costs were $65 million in Q3 FY2026, compared to $179 million in Q3 FY2025, indicating ongoing transformation expenses.
attentionSeparation and other costs were $202 million in Q3 FY2026, compared to $5 million in Q3 FY2025, related to the FedEx Freight spin-off.
attentionMargin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.
| Segment | Current | Prior Yr | YoY | % Total |
|---|---|---|---|---|
Federal Express segment | N/A | — | — | — |
FedEx Freight segment | N/A | — | — | — |
Other and eliminations | N/A | — | — | — |
| Total Revenue | $0.00M | — | — | 100.0% |
Segment performance shows business unit health and growth drivers.
Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.
Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.
Team FedEx delivered another quarter of strong financial results and excellent service for our customers, powered by disciplined operational execution, the resilience of our global network, and the accelerating impact of our advanced digital solutions.
We are the industrial network that powers the global economy, and our network and digital transformation is enabling us to make supply chains smarter for everyone.
Our strategy not only strengthens our operations but also drives robust free cash flow, positioning FedEx to deliver durable, long-term value for stockholders.
Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.
Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.