FedEx Beats With a Record $25B Quarter — but Guidance Spooks Investors
FedEx posted a record $25.0B Q4 (revenue +12.6%) and beat on EPS in its first report after the FedEx Freight spin-off, but cautious guidance sent shares down ~6%.
TL;DR — FedEx closed fiscal 2026 with a record $25.0B fourth quarter (revenue +12.6% YoY) and beat on earnings in its first report after spinning off FedEx Freight — but cautious "transition year" guidance sent shares down about 6% after hours.
FedEx ended its fiscal year on a high note — a record quarter and an earnings beat — but its outlook did the talking, and investors didn’t love it.
The numbers
FedEx reported fiscal Q4 (ended May 31) revenue of $25.0 billion, up about 12.6% from $22.2 billion a year earlier, with adjusted EPS of $6.31, beating the ~$5.92 consensus. Full-year FY2026 revenue was $94.7 billion. It was FedEx’s first report after spinning off FedEx Freight on June 1, 2026. Cautious "transition year" guidance, however, sent shares down roughly 6% after hours.
| Metric | Q4 FY2025 | Q4 FY2026 |
|---|---|---|
| Revenue | $22.2B | $25.0B (+12.6%) |
| Adjusted EPS | — | $6.31 (beat ~$5.92) |
| FY revenue | $87.9B | $94.7B |
What they said
"Our profitable growth strategy is working... I have never been more confident on our path ahead." — Raj Subramaniam, President & CEO, FedEx
Why it matters
- Beat-and-drop. Strong results were overshadowed by cautious guidance — a classic market reaction.
- A leaner FedEx. The Freight spin-off reshapes the company; this is the first look at the remaining business.
- A read on freight demand. FedEx volumes are a barometer for global trade and industrial activity.
FAQ
How did FedEx do in Q4 fiscal 2026?
Revenue rose about 12.6% to a record $25.0 billion and adjusted EPS was $6.31, beating the roughly $5.92 consensus. Full-year FY2026 revenue was $94.7 billion. It was FedEx’s first quarter after spinning off FedEx Freight.
Why did FedEx shares fall despite the beat?
Cautious "transition year" guidance overshadowed the earnings beat, sending shares down roughly 6% after hours — a common reaction when forward outlook disappoints even after strong results.
Sources
Image: “FedEx trucks” by Elliott Plack, CC BY-SA 2.0, via Wikimedia Commons.
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