FedEx reported a third quarter in which the operating business and the reported bottom line told different stories. Revenue for the quarter ended September 30, 2026 rose to 22.9 billion dollars from 20.4 billion a year earlier, and adjusted earnings were 3.74 dollars a diluted share, up from 2.93 dollars, on adjusted net income of 0.90 billion dollars. Reported net income was only 0.29 billion dollars, or 1.21 dollars a share, because the quarter carried a 1.2 billion dollar loss on the company’s retained 19.9 percent stake in FedEx Freight, spun off on June 1 and marked as a short-term investment at 5.18 dollars a share of earnings impact, partly offset by a gain on extinguishment of debt worth 1.97 dollars a share and restructuring and exit costs of 0.68 dollars.
The operating improvement, FedEx said, came from higher package base yields, higher package volumes and continued structural cost reductions, partly offset by higher purchased transportation and wage rates and by the financial impact of global trade policy changes. The company completed 2 billion dollars of share repurchases in the June to September period. Chief executive Raj Subramaniam said the strong operating results and adjusted free cash flow show FedEx winning in high-value segments while it optimises its network.
On that basis the company raised its full year calendar 2026 forecast. Revenue growth is now expected at about 12 percent, up from about 11 percent, and adjusted diluted earnings at 18.00 to 18.60 dollars a share, up from a prior forecast of 16.90 to 18.10 dollars, with the effective tax rate trimmed to about 22.5 percent from about 23 percent.