FedEx | 8-K: FY2026 Q3 Revenue Beats Estimate at USD 24 B

Revenue: As of FY2026 Q3, the actual value is USD 24 B, beating the estimate of USD 23.48 B.

EPS: As of FY2026 Q3, the actual value is USD 4.41, beating the estimate of USD 3.6785.

Consolidated Financial Performance (GAAP)

Operating Income: For the third quarter ended February 28, 2026, operating income was $1.35 billion, up 4% from $1.29 billion in the prior-year quarter.
Operating Margin: The operating margin was 5.6% for the quarter, compared to 5.8% in the same period last year.
Net Income: Net income reached $1.06 billion, a 16% increase from $0.91 billion in the third quarter of fiscal 2025.

Consolidated Financial Performance (Adjusted Non-GAAP)

Operating Income: Adjusted operating income for the third quarter of fiscal 2026 was $1.62 billion, compared to $1.51 billion in the prior-year quarter.
Operating Margin: The adjusted operating margin was 6.7%, a slight decrease from 6.8% in the third quarter of fiscal 2025.
Net Income: Adjusted net income was $1.26 billion, up from $1.09 billion in the same period last year.

Segment Revenue

Federal Express Segment Revenue: Revenue for the Federal Express Segment was $21,154 million in the third quarter of fiscal 2026, an increase of 10% from $19,181 million in the prior-year quarter.
FedEx Freight Segment Revenue: Revenue for the FedEx Freight Segment was $1,991 million in the third quarter of fiscal 2026, a decrease of -5% from $2,089 million in the prior-year quarter.

Segment Operating Income and Margin (GAAP)

Federal Express Segment Operating Income: Operating income for the Federal Express Segment was $1,572 million, a 21% increase from $1,294 million in the prior-year quarter.
Federal Express Segment Operating Margin: The operating margin for the Federal Express Segment was 7.4%, up from 6.7% in the third quarter of fiscal 2025.
FedEx Freight Segment Operating Income: Operating income for the FedEx Freight Segment was $8 million, a -97% decrease from $261 million in the third quarter of fiscal 2025.
FedEx Freight Segment Operating Margin: The operating margin for the FedEx Freight Segment was 0.4%, down from 12.5% in the prior-year quarter.

Segment Operating Income and Margin (Adjusted Non-GAAP)

Federal Express Segment Operating Income: Adjusted operating income for the Federal Express Segment was $1,676 million, compared to $1,424 million in the prior-year quarter.
Federal Express Segment Operating Margin: The adjusted operating margin for the Federal Express Segment was 7.9%, up from 7.4% in the third quarter of fiscal 2025.
FedEx Freight Segment Operating Income: Adjusted operating income for the FedEx Freight Segment was $134 million.
FedEx Freight Segment Operating Margin: The adjusted operating margin for the FedEx Freight Segment was 6.7%.

Operating Costs (Consolidated, Three Months Ended)

Salaries and employee benefits: Increased by 12% to $8,819 million in fiscal 2026 from $7,879 million in fiscal 2025.
Purchased transportation: Increased by 8% to $6,084 million in fiscal 2026 from $5,634 million in fiscal 2025.
Fuel: Decreased by -4% to $856 million in fiscal 2026 from $889 million in fiscal 2025.
Business optimization costs: Decreased by -64% to $65 million in fiscal 2026 from $179 million in fiscal 2025.

Cash Flow (Nine Months Ended)

Cash provided by operating activities: Totaled $5,660 million for the nine months ended February 28, 2026, up from $4,517 million in the prior-year period.
Cash used in investing activities: Totaled -$2,435 million for the nine months ended February 28, 2026, compared to -$2,660 million in the prior-year period.
Cash provided by financing activities: Resulted in $2,876 million provided for the nine months ended February 28, 2026, a significant increase from -$3,172 million used in the prior-year period.
Capital Expenditures: Were $2,335 million for the nine months ended February 28, 2026, a decrease from $2,582 million in the prior-year period.
Net increase (decrease) in cash and cash equivalents, and restricted cash: Showed an increase of $6,186 million for the nine months ended February 28, 2026, compared to a decrease of -$1,366 million in the prior-year period.

Operational Metrics (Federal Express Segment, Three Months Ended)

Average Daily Package Volume (ADV): Total ADV increased by 3% to 18,455 thousand from 17,867 thousand in the prior-year quarter.
- U.S. domestic ADV increased by 5% to 15,496 thousand.
- International export ADV increased by 2% to 1,165 thousand.
Revenue per package (yield): Composite package yield increased by 6% to $16.65 from $15.69 in the prior-year quarter.
- U.S. domestic composite yield increased by 5% to $14.70.
- International export composite yield increased by 6% to $52.44.
Average daily freight pounds: Total average daily freight pounds increased by 4% to 18,408 thousand from 17,676 thousand in the prior-year quarter.
Revenue per pound (yield): Composite freight yield increased by 8% to $1.26 from $1.17 in the prior-year quarter.

Operational Metrics (FedEx Freight Segment, Three Months Ended)

Average daily shipments: Total average daily shipments decreased by -6% to 80.2 thousand from 85.1 thousand in the prior-year quarter.
Weight per shipment: Composite weight per shipment increased by 1% to 926 lbs from 917 lbs in the prior-year quarter.
Revenue per shipment: Composite revenue per shipment increased by 1% to $380.24 from $375.81 in the prior-year quarter.
Revenue per hundredweight: Composite revenue per hundredweight remained unchanged at $41.08.

Outlook / Guidance

[联邦快递] is revising its fiscal 2026 outlook, now expecting a 6.0% to 6.5% revenue growth rate year over year, an increase from the prior forecast of 5% to 6% growth. Diluted earnings per share are projected to be $16.05 to $16.85, an increase from the previous forecast of $14.80 to $16.00. The company anticipates permanent cost reductions of more than $1 billion in transformation-related savings and capital spending of no more than $4.1 billion, a reduction from the prior forecast of $4.5 billion.