FedEx reported quarterly earnings that beat Wall Street expectations on both the top and bottom lines, and raised its full-year outlook. The report covers the period ended Sept. 30 and is the first of the company's realigned fiscal year, which moved the calendar end from May 31 to Dec. 31.
Net income for the quarter was $290 million, or $1.21 per share, compared with $650 million, or $2.73 per share, a year earlier. Adjusted for one-time items, including losses on short-term investments, gains on debt extinguishment and certain restructuring costs, FedEx reported adjusted earnings per share of $3.74.
FedEx said its express U.S. segment operating income increased in the quarter, driven mainly by higher package yields and volume.
CEO Raj Subramaniam said in a statement: "As our strong operating results and adjusted free cash flow demonstrate, FedEx is winning across high-value market segments while we optimize our network, driving an increase to our full-year outlook."
The company now expects adjusted earnings per share of $18 to $18.60 for the full year, up from a prior range of $16.90 to $18.10. It also raised its 2026 revenue growth expectation to roughly 12% year over year, from 11%.
Shares fell slightly in extended trading. The report follows the spinoff of FedEx Freight into a separate publicly traded company.
Earlier this week, FedEx named Jamere Jackson, a former AutoZone executive, as its new chief financial officer, effective Nov. 30. He succeeds Claude Russ, who had served as interim CFO since June 1.