FedEx Reports Q3 2026 Financial Results, Completes $2B in Share Buybacks, and Raises Full-Year Outlook

Executive Summary

On October 28, 2026, FedEx Corporation filed a Form 8-K under Item 2.02 (Results of Operations and Financial Condition) furnishing its financial results for the quarter ended September 30, 2026.

Key Financial Highlights (Three Months Ended September 30, 2026)

• Revenue: Reported at $22.9 billion, up from $20.4 billion in the prior-year period.
• Operating Income: $1.07 billion GAAP ($1.20 billion Adjusted) compared to $0.97 billion GAAP ($1.03 billion Adjusted) in Q3 2025.
• Operating Margin: 4.7% GAAP / 5.3% Adjusted (vs. 4.8% GAAP / 5.1% Adjusted in Q3 2025).
• Net Income: $0.29 billion GAAP ($0.90 billion Adjusted), affected by a $1.2 billion ($5.18 per diluted share) loss on retained short-term investment in FedEx Freight, partially offset by a $1.97 per share gain on debt extinguishment.
• Diluted EPS: $1.21 GAAP ($3.74 Adjusted) compared to $2.73 GAAP ($2.93 Adjusted) in Q3 2025.

Corporate Actions & Capital Allocation

• Share Repurchases: Repurchased $2.0 billion of common stock (~6.3 million shares) from June through September 2026, contributing $0.02 to Q3 EPS. $4.3 billion remains under the 2026 repurchase authorization.
• FedEx Freight Spin-Off: Completed on June 1, 2026; FedEx retained a 19.9% stake carried at $3.3 billion at quarter-end.
• Debt Extinguishment: Used proceeds from FedEx Freight's ~$4.1 billion dividend and cash on hand to retire ~$4.9 billion in debt, generating a pre-tax non-GAAP gain of $627 million.
• FedEx Supply Chain Sale: Finalized sale to CMA CGM Group on October 1, 2026, for ~$1.4 billion.
• Rate Increases: Announced a 5.9% average parcel shipping rate increase effective January 4, 2027.

Raised Calendar Year 2026 Guidance

• Revenue Growth: ~12% YoY (up from ~11%).
• GAAP Diluted EPS: $35.30 to $35.90.
• Adjusted Diluted EPS: $18.00 to $18.60 (up from $16.90 to $18.10).
• Effective Tax Rate: ~22.5% (down from ~23%).
• Capital Spending: Unchanged at $3.9 billion.