FedEx (FDX) Q1 2026 Earnings

FedEx beat on the top and bottom lines in its fiscal first-quarter earnings report on Thursday.

The stock rose more than 5% in after-hours trading on Thursday.

“Despite significant volatility and uncertainty around the global trade environment, our results demonstrate the resilience we have built into our network,” CEO Raj Subramaniam said in a call with analysts Thursday. “They also reflect the dedication of our world class team, who have adapted quickly to serve customers with excellence through an evolving demand environment.”

Here’s how the company performed in the first fiscal quarter, compared with what Wall Street was expecting based on a survey of analysts by LSEG:

• Earnings per share: $3.83 adjusted vs. $3.59 expected
• Revenue: $22.24 billion vs. $21.66 billion expected

The package delivery company posted net income of $820 million, or $3.46 per share, for the first fiscal quarter ended Aug. 31, compared to $790 million, or $3.21 per share, in the year-ago period. Adjusted for FedEx Freight spin-off costs and other changes, the company posted net income of $910 million or $3.83 per share.

Average daily volumes in the U.S. saw an increase of 6% overall, the company reported. FedEx said segment operating results saw improvements this quarter due to higher domestic package volumes, but the FedEx Freight segment operating results fell due to lower revenue and higher wages.

The company said it sees revenue growth in 2026 in the range of 4% to 6%, compared with a Wall Street estimate of 1.2%. FedEx expects full-year earnings per share for fiscal year 2026 at $17.20 to $19, which is a midpoint of $18.10, compared with an estimate of $18.21.

Subramaniam said on Thursday that the outlook reflects what remains to be a “dynamic global operating environment.” The company said it incurred $150 million in headwinds from the global trade environment.

FedEx is continuing the process of spinning off FedEx Freight into a new publicly traded company, with an expected completion date of June 2026, the company said.

Subramaniam said FedEx moves 17 million packages through its network daily. He added that the company was flexible in the first quarter, adapting to the changing macroeconomic environment.

Last month, the “de minimis” exception, which permitted shipments under $800 to enter the U.S. duty-free, came to an end globally after President Donald Trump issued an executive order. As a result, FedEx announced it was slightly raising shipping fees.

The company said the majority of its headwinds in the first quarter were due to the loss of the de minimis exception.

“Given a significant portion of our de minimis volume exposure previously came from China, we were able to use learnings from experiences in May to help shippers elsewhere navigate the more recent exemption elimination,” Subramaniam said on the call.