FedEx Corporation reported $22.9 billion in revenue for the third quarter of 2026, marking a 12% increase from $20.4 billion in the same period of 2025. The company's performance was driven by higher parcel yields, increased shipping volumes, and ongoing cost-cutting efforts. Operating income rose to $1.07 billion, up from $972 million in Q3 2025.
The company's net income from continuing operations declined to $290 million, down from $645 million, partly due to a non-cash loss related to its investment in FedEx Freight. However, adjusted net income from continuing operations increased to $896 million, compared to $693 million. Diluted adjusted earnings per share were $3.74, up from $2.93 in the previous year.
FedEx Express International achieved $7.47 billion in revenue, representing a 17% annual increase. International shipping revenue grew 28% to $1.44 billion, driven by higher shipment weights and improved yields. The average daily weight of international shipments rose 15%, while the segment's operating income increased 15% to $220 million.
The company also reported growth in its US operations, with FedEx Express US Domestic revenue rising 10% to $14.71 billion, fueled by increased parcel volumes and better yields. FedEx continued to implement initiatives to enhance its operational network and reduce costs during the quarter.
However, higher transportation costs, increased wages, and changes in global trade policies put pressure on operating expenses. On October 1, 2026, FedEx completed the sale of its FedEx Supply Chain unit to CMA CGM Group for approximately $1.4 billion. This move aligns with FedEx's strategy to streamline its business portfolio and focus on core transportation operations.
FedEx also completed the separation of FedEx Freight on June 1, 2026, retaining a 19.9% ownership stake in the new independent entity. Raj Subramaniam, FedEx's President and CEO, stated that the company's strong operational performance and adjusted free cash flow demonstrate its success in high-value market segments.
Following the quarterly results, FedEx raised its 2026 revenue growth forecast to around 12%, up from the previous estimate of 11%. The company also increased its adjusted earnings per share outlook to $18.00-$18.60, from $16.90-$18.10. During the June-September period, FedEx returned $2 billion to shareholders through stock buybacks.
Key points
- FedEx reports $22.9 billion in Q3 2026 revenue, a 12% increase from Q3 2025.
- International shipping revenue grew 28% to $1.44 billion, driven by higher shipment weights and improved yields.
- FedEx raised its 2026 revenue growth forecast to around 12% and increased its adjusted earnings per share outlook.
