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FedEx Sees Growth Despite Trade Uncertainty

[ June 26, 2026   //   ]

FedEx reported stronger fourth-quarter and full-year results, driven by higher package yields, improving international export volumes and more than US$1 billion in transformation-related cost savings, while forecasting continued revenue and earnings growth through the remainder of calendar 2026.

For the fiscal fourth quarter ended May 31, revenue increased to US$25.0 billion from US$22.2 billion a year earlier. Adjusted operating income rose to US$2.09 billion, while adjusted diluted earnings per share increased to US$6.31 from US$6.07.

The company said improved results reflected continued strength in U.S. Domestic and International Priority package yields, higher domestic and international export package volumes and ongoing savings generated through its network transformation initiatives.

“Team FedEx delivered an impressive finish to a strong fiscal year,” President and CEO Raj Subramaniam said. “Our profitable growth strategy is working.”

For the full fiscal year, revenue climbed to US$94.7 billion, up from US$87.9 billion, while adjusted operating income increased to US$6.61 billion from US$6.12 billion. FedEx said it exceeded its goal of US$1 billion in transformation-related cost savings during the year.

The quarter also marked a significant corporate milestone with the completion of the spin-off of FedEx Freight into a separate publicly traded company on June 1. The company said the move positions FedEx to focus on optimizing its global parcel and logistics network while improving long-term free cash flow.

Looking ahead, FedEx introduced its first calendar-year outlook following the company’s transition from a May 31 fiscal year-end to a Dec. 31 reporting calendar. Management expects about 11 percent year-over-year revenue growth during calendar 2026 and adjusted earnings per share of US$16.90 to US$18.10.

The outlook assumes no additional adverse economic, geopolitical or international trade developments beyond those currently anticipated. Management cited uncertainty surrounding global trade policy as one of the principal risks to its forecast but said continued revenue and earnings growth momentum is expected through the company’s June-to-December transition period.

FedEx plans about US$3.9 billion in capital spending during calendar 2026, focused on network optimization, fleet modernization and automation initiatives.

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