FedEx reported Q4 earnings and revenue that beat Wall Street expectations.
- FedEx completed the spin-off of its FedEx Freight unit on June 1, receiving a $4.1 billion cash dividend and sharpening its focus on parcel and express operations.
- Despite the upbeat results, FedEx’s calendar 2026 outlook fell short of expectations.
- The company projected around 11% revenue growth on a continuing-operations basis and adjusted diluted EPS in the $16.90 to $18.10 range.
FedEx (FDX) shares fell more than 5% in after-hours trading on Tuesday after the company posted strong fourth-quarter and full-year results but issued forward guidance that disappointed Wall Street.
The stock’s reaction came as investors digested the company’s first quarterly report since completing the spin-off of its FedEx Freight business into a separate publicly traded company (FDXF) on June 1. CEO Raj Subramaniam said in a call with analysts that Freight is “extremely well positioned” as an independent company.
FDX Q4 FY2026 Financial Metrics
FedEx reported fourth-quarter revenue of $25 billion, up 12.6% year over year and above estimates of $24 billion, according to Fiscal.ai. Adjusted earnings per share came in at $6.31, beating analyst expectations of $5.95.
For the full fiscal year ended May 31, revenue climbed 7.8% to $94.7 billion, with adjusted EPS rising to $20.24 from $18.19.
B2B services drove the majority of quarterly revenue growth, supporting high profit flow-through. Management was especially encouraged by progress and pipelines in the key healthcare, automotive, aerospace, and data center verticals. The gains stemmed from higher package volumes and pricing power in the core Express business, plus more than $1 billion in cost savings from the company’s multi-year transformation program.
FedEx also completed the spin-off of its FedEx Freight unit on June 1, receiving a $4.1 billion cash dividend and sharpening its focus on parcel and express operations.
FDX Outlook
Despite the upbeat results, FedEx’s calendar 2026 outlook fell short of expectations. The company projected roughly 11% revenue growth on a continuing-operations basis and adjusted diluted EPS in the $16.90 to $18.10 range, below an analyst estimate of $19.86 per share.
CEO Raj Subramaniam described the results as an “impressive finish” and said the profitable-growth strategy is delivering, positioning the company for continued revenue and earnings momentum alongside stronger free cash flow.
FedEx plans $3.9 billion in capital spending next year, directed at network optimization, fleet modernization, and automation. It also raised its dividend 5% and authorized up to $1 billion in share repurchases.
FDX Stock: What Retail Traders Feel
On Stocktwits, retail sentiment around FDX stock jumped from ‘bullish’ to ‘extremely bullish’ over the past 24 hours, while message volume increased from ‘high’ to ‘extremely high’ levels.
A Stocktwits user anticipated further selloff, citing an increase in operating expenses.
Another user highlighted that rising gas prices are a major negative for the courier company. Fuel expenses in FedEx’s core Federal Express segment rose sharply in the fourth quarter, climbing 70% year-over-year to $1.275 billion from $750 million a year earlier, driven by higher jet fuel prices.
FDX stock has gained 34% year-to-date.
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