MW FedEx is getting more upbeat about the year - despite surging fuel costs
By Bill Peters
Management said the company is on track to spin off its FedEx Freight segment on June 1
FedEx reported quarterly results on Thursday.
Shares of FedEx rose in extended trading Thursday after the package-delivery giant said it expected slightly better sales and profits for this year, even as the Iran war threatens larger shipping disruptions and drives fuel prices higher.
Management also said the company was on pace to spin off its FedEx Freight segment into a new publicly traded company on June 1.
FedEx $(FDX)$ said it expects a sales gain of 6% to 6.5% for its 2026 fiscal year, which runs through May. Previously, the company had forecast a 5% to 6% increase. The company said it expects to permanently cut "more than $1 billion" in costs this year - part of a years-long effort to lean down - compared with a prior forecast for $1 billion.
FedEx also predicted full-year earnings per share of $19.30 to $20.10, compared with earlier expectations for $17.80 to $19.00.
Shares of FedEx were up 1.6% after hours on Thursday.
Heading into the company's results, Wall Street's focus was largely on oil (CL00) (BRN00), since FedEx's trucks and planes use a lot of it. The war in Iran has sent oil and gas prices higher and upended shipping in the Middle East. FedEx earlier this month said it had resumed pickup and delivery services in the region, after halting some operations there, but warned of shipping delays.
Those disruptions have followed a stretch of subdued shipping demand ever since Russia's invasion of Ukraine in 2022, when prices for raw materials and home essentials spiked and people and businesses pulled back on product orders. FedEx since then has tried to cut costs and make its network more efficient. The company is also suing for a tariff refund after the Supreme Court struck down President Donald Trump's emergency-powers tariffs last month.
Still, FedEx said its results got better during its third quarter, as it was able to charge more per package in the U.S. and internationally. U.S. package volumes rose over that period.
FedEx on Thursday reported $24 billion in revenue for that quarter, above analysts' estimates for $23.49 billion. The company reported adjusted earnings per share of $5.25, above forecasts for $4.15. FedEx's fiscal third quarter ran through February.
As of the close of trading on Thursday, shares of FedEx were up 44.6% over the past 12 months.
-Bill Peters
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(END) Dow Jones Newswires
March 19, 2026 16:48 ET (20:48 GMT)
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