March 19, 2026 — FedEx Corp. (NYSE: FDX) has announced robust consolidated financial results for the third quarter ending February 28, 2026, showcasing the effectiveness of its ongoing transformation initiatives and the resilience of its global network. This press release highlights key financial metrics, strategic updates, and projections for the future.

1. Financial Highlights

For the third quarter of fiscal 2026, FedEx reported the following results:

Metric	Fiscal 2026	Fiscal 2025
Revenue	$24.0 billion	$22.2 billion
Operating Income	$1.35 billion	$1.29 billion
Operating Margin	5.6%	5.8%
Net Income	$1.06 billion	$0.91 billion
Diluted EPS	$4.41	$3.76

FedEx’s adjusted measures, which exclude certain expenses, also reflect strong performance, with adjusted operating income rising to $1.62 billion for fiscal 2026 compared to $1.51 billion for fiscal 2025.

Operational Insights

The surge in operating income can be attributed to several factors:

Higher yields from U.S. domestic and International Priority packages.

Continued cost savings from transformation initiatives.

An increase in U.S. domestic package volume.

However, these gains were somewhat offset by rising variable incentive compensation expenses, wage rate increases, the impact of global trade policy changes, and increased purchased transportation rates.

CEO Statement

Raj Subramaniam, President and CEO of FedEx Corp., expressed confidence in the company's trajectory, stating, “Team FedEx delivered another quarter of strong financial results and excellent service for our customers, powered by disciplined operational execution... Our strategy not only strengthens our operations but also drives robust free cash flow, positioning FedEx to deliver durable, long-term value for stockholders.”

2. FedEx Freight Spin-Off Update

A significant highlight from the press release is the planned spin-off of FedEx Freight into a new publicly traded company, slated for June 1, 2026. The spin-off is positioned to enhance operational focus and shareholder value. On February 5, 2026, FedEx Freight completed the issuance of $3.7 billion in senior notes, which will facilitate the transition by contributing to FedEx Corporation’s asset contribution to FedEx Freight.

FedEx Freight is scheduled to host an Investor Day in New York City on April 8, 2026, to discuss the spin-off and its strategic implications.

3. Strategic Investments

In a notable move, FedEx, in collaboration with Advent International, A&R Investments, and PPF Group, announced a conditional agreement to acquire InPost for €15.60 per share. This transaction is expected to close in the second half of 2026 and is anticipated to be accretive to FedEx's earnings shortly after the acquisition.

4. Revised Fiscal Outlook

FedEx has revised its fiscal 2026 outlook, now expecting:

Revenue growth of 6.0% to 6.5%, up from the previous forecast of 5% to 6%.

Diluted earnings per share (EPS) of $16.05 to $16.85, adjusted for various costs, compared to the previous range of $14.80 to $16.00.

Permanent cost reductions exceeding $1 billion from transformation-related savings.

The effective tax rate is projected to be approximately 24% before accounting adjustments, showing an improvement from the previously forecasted 25%.

CFO Commentary

John Dietrich, Executive Vice President and CFO, remarked, “Our third quarter results and improved financial outlook reflect the resilience of our business and outstanding execution against our strategy to drive profitable growth... We are very well positioned to drive higher profitability and generate strong free cash flow.”

5. Conclusion

FedEx Corp.'s third-quarter results demonstrate a strong rebound in its financial performance amid ongoing transformation initiatives and strategic investments. With a promising outlook for the remainder of the fiscal year, FedEx is poised to enhance its operational efficiency and deliver value to its shareholders. As the company continues to adapt to evolving market conditions, its commitment to innovation and customer service remains at the forefront of its strategy.

Original press release