TLDR
- FedEx shares fall despite stronger quarterly revenue and adjusted EPS growth
- FDX drops after hours as calendar 2026 guidance fails to support the stock
- FedEx posts $25 billion revenue while its stock extends late-session losses
- Cost savings and higher package yields support FedEx fourth-quarter results
- FedEx Freight spin-off reshapes cash levels and future capital allocation plans
FedEx Corporation (FDX) shares fell sharply despite stronger quarterly revenue, adjusted earnings growth, and continued progress across its global delivery network. FDX closed 3.51% lower at $317.24 before dropping another 4.92% to $301.62 after hours. The decline followed the company’s fourth-quarter report and its calendar 2026 financial outlook.
FedEx Reports Higher Fourth-Quarter Revenue
FedEx generated fourth-quarter revenue of $25 billion, up from $22.2 billion during the same period last year. Adjusted operating income increased to $2.09 billion from $2.02 billion, while adjusted operating margin reached 8.4%. Adjusted diluted earnings rose to $6.31 per share from $6.07 per share.
The Federal Express segment benefited from stronger domestic and International Priority package yields during the quarter. Higher domestic and international export volumes also supported the segment’s performance and strengthened consolidated adjusted operating income. However, increased transportation costs, higher wages and incentive compensation expenses limited further operating gains.
Global trade policy changes also affected fourth-quarter results and increased pressure across several operating areas. FedEx continued its transformation program and reduced structural costs across its delivery and logistics network. These measures supported earnings despite higher expenses and changing international trade conditions.
Full-Year Earnings Rise as Costs Decline
FedEx reported full-year revenue of $94.7 billion, compared with $87.9 billion in fiscal 2025. Adjusted operating income reached $6.61 billion, up from $6.12 billion during the previous fiscal year. Adjusted diluted earnings increased to $20.24 per share from $18.19 per share.
The company exceeded its $1 billion transformation savings target and reduced costs across its global operations. Capital spending declined 6% to $3.8 billion, which represented 4% of annual revenue. That spending ratio marked the lowest annual level in the company’s history.
FedEx also returned about $2.2 billion to stockholders through dividends and share repurchases during fiscal 2026. The company spent $776 million on repurchases and distributed approximately $1.4 billion through dividend payments. Furthermore, FedEx retained $1.3 billion under its existing 2024 share repurchase authorization.
Freight Spin-Off and Outlook Shape Market Reaction
FedEx completed the FedEx Freight spin-off on June 1, creating a separate publicly traded freight company. FedEx Freight paid a $4.1 billion cash dividend to its former parent before completing the transaction. Consequently, FedEx ended the fiscal year with $13.3 billion in cash and cash equivalents.
For calendar 2026, FedEx expects revenue growth of about 11% from its recast calendar 2025 baseline. The company forecast adjusted diluted earnings between $16.90 and $18.10 from continuing operations. It also expects capital spending of $3.9 billion and an effective tax rate near 23%.
FedEx plans to focus spending on network efficiency, automation, aircraft modernization, and facility improvements. However, the forecast assumes stable economic conditions, expected fuel prices, and no new trade or geopolitical disruptions. FDX shares still extended losses after hours despite revenue growth, stronger adjusted earnings, and lower structural costs.
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