MEMPHIS (dpa-AFX) - FedEx Corp. (FDX) on Wednesday reported a drop in profit for the third quarter; however, adjusted earnings and revenue increased from last year. The company also raised its full-year 2026 financial outlook, driven largely by stronger package yields, higher volumes, and continued cost reductions.
Net income for the quarter fell to $290 million or $1.21 per share from $645 million or $2.73 per share a year earlier. Adjusted net income rose to $896 million or $3.74 per diluted share from $693 million or $2.93 per share.
Revenue increased to $22.9 billion from $20.4 billion. Adjusted operating margin improved to 5.3% from 5.1%.
Reported results included a $1.2 billion loss on FedEx's retained investment in FedEx Freight following its June spin-off, partly offset by a $627 million gain from debt extinguishment.
FedEx raised its calendar 2026 revenue growth forecast to approximately 12%, from 11% previously. Adjusted earnings per share guidance has been increased to $18.00 - $18.60 from $16.90 - $18.10. The company expects capital spending of $3.9 billion.
FedEx also completed $2.0 billion in share repurchases during the quarter, with $4.3 billion remaining under its current repurchase authorization.
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