Shares of FedEx (NYSE: FDX) gained more than 2% on Friday after the delivery giant posted quarterly earnings above Wall Street expectations and issued a full-year forecast that bracketed analyst estimates.
The Memphis-based company benefited from aggressive cost-cutting measures, which helped offset weaker international volumes following the expiration of a tariff exemption on certain low-value consumer shipments.
FedEx reported first-quarter earnings of $3.83 per share, surpassing consensus estimates of $3.68. Revenue rose to $22.2 billion, ahead of forecasts of $21.69 billion.
For fiscal 2026, the company projected earnings of $17.20 to $19.00 per share, compared with Wall Street’s estimate of $18.25. On an adjusted basis, excluding restructuring and accounting charges, FedEx guided EPS between $14.20 and $16.00.
Revenue growth was forecast at 4% to 6% year-over-year, while capital expenditures were set at $4.5 billion, focused on network optimization and automation. FedEx also cut its expected pension contributions to as much as $400 million from a prior $600 million and maintained its effective tax rate forecast at 25%.
