FedEx posts higher quarterly results, raises low end of full-year profit forecast

It lifted its 2026 revenue outlook, calling for 5 to 6 per cent year-over-year growth

FEDEX posted higher second-quarter profit and revenue on Thursday and lifted the low end of its full-year earnings outlook, as peak-season pricing actions and cost-cutting efforts helped offset softer shipment volumes.

The Memphis-based package delivery company reported an adjusted profit of US$1.14 billion, or US$4.82 per share, for the second quarter ended Nov 30, up from US$990 million, or US$4.05 per share, a year earlier.

FedEx has been pursuing a multi-year cost overhaul since 2023, aiming to take billions out of its operating base by idling aircraft, shuttering sites and integrating its formerly separate Ground and Express operations.

For the fiscal year ending in May 2026, the company is targeting an additional US$1 billion in savings.

The company now projects annual profit of US$17.80 to US$19.00 per share, raising the low end of its previous US$17.20 to US$19.00 range.

It also lifted its 2026 revenue outlook, calling for 5 per cent to 6 per cent year-over-year growth, versus its earlier forecast of 4 per cent to 6 per cent.

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After three consecutive years of flat or shrinking sales, FedEx caught Wall Street off guard with 3 per cent year-over-year revenue growth in the quarter ended August - and it has kept that momentum going with another quarter of revenue growth.

At the close of trading on Thursday, shares in FedEx were up 2 per cent year-to-date, while shares in rival UPS were down 19 per cent. REUTERS

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