FedEx earnings
FedEx's next results are expected on October 28, 2026. FedEx must show that Network 2.0 savings are becoming durable margin while service remains reliable.
What has FedEx guided for calendar 2026?
The weighted path is weak at first and positive by the final date, hinging on recurring network savings, reliable service, and stronger margins. Calendar 2026 guidance calls for 11% revenue growth and diluted EPS of $16.55–$17.75. Adjusted diluted EPS is $16.90–$18.10. The 2029 framework targets about $98 billion of revenue and $8 billion of operating income. It targets an 8% operating margin. FedEx targets about $2 billion of cumulative Network 2.0 and One FedEx savings by the end of 2027.
Management’s calendar-year forecast uses recast 2025 continuing operations, which excludes FedEx Freight after its spin-off. It also gave a separate estimate for the transition period and said most of that period’s adjusted operating income would arrive in the final quarter, following the company’s usual peak-season pattern.
| Period guided | Low | High | Date given | |
|---|---|---|---|---|
| Revenue Growth | Calendar 2026 | 11.0% | 11.0% | Jun 23, 2026 |
| Diluted EPS (Continuing Operations) | Calendar 2026 | 16.55 | 17.75 | Jun 23, 2026 |
| Adjusted Diluted EPS (Continuing Operations) | Calendar 2026 | 16.90 | 18.10 | Jun 23, 2026 |
| Capital Spending | Calendar 2026 | 3,900 | 3,900 | Jul 20, 2026 |
| Aircraft spend | Calendar 2026 | 1,000 | 1,000 | Jul 20, 2026 |
| savings from the plan | Calendar 2026 | 150 | 150 | Jul 20, 2026 |
What this means. The company’s adjusted earnings per share leaves out unusual costs, so it may look higher than earnings per share after all listed costs.
Has FedEx kept its past promises?
Raj Subramaniam has led FedEx as CEO since 2022, after joining the company in 1991 and becoming chief operating officer in 2019. His main project is DRIVE, a cost and operating transformation introduced in December 2022. FedEx says it exceeded its $1 billion transformation-savings target for fiscal 2026, but lasting savings matter more than a single milestone.
What should FedEx watch for in its next results?
The call covers June through September, so management should explain how those results fit the seven-month transition estimate and the full calendar-year outlook. The important evidence will not be EPS alone. Operating cash flow, capex and service performance will show whether the plan is producing the intended operating improvement.
UPS reported an adjusted operating margin of 9.8% for full-year 2025, offering useful context for the efficiency gap. FedEx must now show that its savings remain after implementation costs and labor pressure. Management promises a denser network and lower costs; analysts offer a limited earnings yardstick; the decisive proof will be recurring cash and improving margins.