FedEx (FDX) Q1 2027 earnings summary

Executive summary

• Q3 CY26 revenue rose 12% YoY to $22.855B; adjusted operating income increased 16% to $1.197B and adjusted EPS rose 28% to $3.74.

• Higher base yields, B2B and premium B2C demand, and network efficiencies supported growth; higher transportation, wage and fuel costs partly offset gains.

• CY26 adjusted EPS guidance was raised and narrowed to $18.00–$18.60, with revenue growth forecast at ~12%.

Financial highlights

• Q3 adjusted operating margin was 5.3%, up from 5.1%; GAAP operating income was $1.067B versus $972M a year earlier.

• Reported net income declined YoY, reflecting a $1.238B unrealized loss on the retained Freight stake.

• Adjusted results included $100M in pilot-agreement costs and $75M in variable compensation headwinds.

Outlook and guidance

• CY26 adjusted EPS guidance is $18.00–$18.60; the $18.30 midpoint implies 23% YoY growth, while adjusted operating margin is expected to increase slightly.

• CY26 revenue growth forecast is ~12%, including ~4 percentage points from fuel surcharges; effective tax rate is ~22.5%.

• Adjusted free cash flow forecast is $3.955B; capex is expected to be $3.9B, with 90% directed to maintenance or efficiency.

• Q4 adjusted EPS range is $6.03–$6.63; International margin is expected to expand YoY and U.S. Domestic margin to decline moderately.

• CY26 outlook assumes no additional adverse economic, geopolitical or trade developments; fuel, labor, purchased transportation and execution risks remain.