FedEx shares drop on weak 2026 outlook despite strong Q4 earnings beat
FedEx reported Q4 fiscal 2026 earnings above estimates (adjusted EPS $6.31 vs. $5.92 expected, revenue $25B vs. $24.01B) but shares fell 5-6% after issuing a fiscal 2027 profit forecast ($16.90-$18.10 EPS) well below consensus ($19.86). The company cited trade policy uncertainty, rising costs, shrinking margins (8.4% vs. 9.1%), and e-commerce headwinds from Chinese import rule changes. The FedEx Freight spinoff and AI/data center growth were highlighted as positives, alongside a $1B buyback and 5% dividend hike.
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FedEx Q4 2026 Earnings Beat Estimates but Stock Falls on Weak Guidance
FedEx reported fiscal fourth-quarter earnings that exceeded Wall Street expectations, with adjusted EPS of $6.31 versus $5.96 consensus and revenue of $25.01 billion, a 13% year-over-year increase. However, the stock dropped roughly 6% in after-hours trading as the company's forward profit outlook for calendar 2026 came in slightly below expectations. The company guided for adjusted diluted EPS of $16.90-$18.10 on approximately 11% revenue growth for the year, reflecting only continuing operations after the spin-off of FedEx Freight. Operating margins in the core Federal Express segment fell to 7.7% from 8.4% due to higher wage, transportation, and fuel costs. Fuel expenses nearly doubled to $1.43 billion. The company announced a $1 billion stock buyback plan and a 5% dividend increase.
Yahoo FinanceFedEx Shares Fall After 2026 Outlook Disappoints Despite Strong Fourth-Quarter Results
FedEx shares fell over 6% in premarket trading on June 24, 2026, after the company issued a fiscal 2026 earnings forecast of $16.90-$18.10 per share, well below the Wall Street consensus of $19.86. This overshadowed stronger-than-expected fourth-quarter results, which showed adjusted earnings of $6.31 per share (vs. $5.92 estimate) and revenue of $25 billion (vs. $24.01 billion estimate). The company cited ongoing market headwinds including the removal of duty-free treatment for low-value Chinese imports affecting e-commerce volumes. Management emphasized transformation progress, including the spin-off of FedEx Freight and cost reduction initiatives. Analysts at Stifel viewed the quarter positively despite the guidance miss, noting the results underscore success in the company's multi-lever transformation strategy. Investors are increasingly focused on the performance of FedEx's higher-margin premium overnight delivery services to offset softness in traditional package delivery.
Yahoo FinanceFedEx stock sinks as trade policy whiplash weighs on results
FedEx shares fell over 1.5% after reporting fiscal Q4 earnings that beat analyst expectations but revealed a shrinking operating margin, which dropped to 8.4% from 9.1% a year earlier. The company posted adjusted earnings of $6.31 per share versus the expected $5.97, and revenue rose 13% to $25 billion. However, rising transportation costs, wages, and shifting global trade policies offset gains from higher yields and package volumes. The results follow the spin-off of FedEx Freight. Management highlighted double-digit revenue growth from AI and data center services as a key growth driver. FedEx is considered a bellwether for the broader economy.
Yahoo FinanceFedEx stock falls as trade policy uncertainty weighs on earnings results
FedEx shares tumbled over 6% in pre-market trading after the company reported fiscal fourth-quarter earnings that beat expectations but revealed shrinking margins and headwinds from volatile global trade policy. Adjusted earnings came in at $6.31 per share against an expected $5.97, while revenue rose 13% to $25 billion. However, operating margin contracted to 8.4% from 9.1% a year earlier, driven by higher transportation costs, wages, and trade policy impacts. The results come after FedEx completed the spinoff of FedEx Freight, which reports separately on Thursday. Despite the near-term pressure, management highlighted double-digit revenue gains from AI and data centers and expressed optimism about future growth and cost optimization. CEO Raj Subramaniam emphasized the company's positioning for long-term value creation following the Freight spinoff.
Yahoo FinanceFedEx stock sinks as trade policy whiplash weighs on results
FedEx shares fell over 1.5% on Wednesday after the company reported fiscal fourth-quarter earnings that beat expectations but revealed margin compression. Adjusted earnings per share were $6.31, above the $5.97 consensus, while revenue rose 13% to $25 billion. However, operating margin shrank to 8.4% from 9.1% a year ago, as higher yields and package volumes were offset by rising transportation costs, wages, and the impact of shifting global trade policy. The results follow the completion of the FedEx Freight spin-off. Despite the near-term headwinds, management highlighted double-digit revenue gains from AI and data center demand, calling it a rapidly scaling growth engine. FedEx is considered a bellwether for the broader economy.
Yahoo FinanceFedEx Keeps Finding Ways to Unlock Value, McNally Says
FedEx reported fiscal fourth-quarter earnings that exceeded Wall Street estimates, and the courier company forecasts profit growth in the coming year. The results indicate that ongoing cost-cutting initiatives are proving effective. Peter McNally, an analyst at Third Bridge, discussed the earnings report on Bloomberg The Close, emphasizing that FedEx continues to find ways to unlock shareholder value. The positive outlook has generated investor interest, with shares showing slight movement. The analysis highlights the company's strategic focus on operational efficiency and value creation.
Yahoo FinanceFedEx shares drop on weak profit forecast as Q4 results top estimates
FedEx shares fell nearly 5% in after-hours trading on Tuesday after the company issued fiscal 2027 earnings guidance below Wall Street expectations, overshadowing stronger-than-expected fourth-quarter results. FedEx projected fiscal 2027 adjusted diluted EPS of $16.90 to $18.10, below the consensus estimate of $19.86, while forecasting 11% revenue growth. For Q4 fiscal 2026, FedEx reported adjusted EPS of $6.31 on revenue of $25 billion, exceeding analyst estimates of $5.92 per share and $24.01 billion in revenue. Revenue increased 12.6% year-over-year, and adjusted EPS rose from $6.07. CEO Raj Subramaniam highlighted the successful spin-off of FedEx Freight and the company's transformation initiatives, positioning for growth and robust free cash flow.
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