Key facts
- FedEx expects revenue to grow about 11% by 2026.
- The company forecasts earnings per share in the range of $16.90 to $18.10.
- FedEx reported a fourth-quarter adjusted profit of $6.31 per share, up from $6.07 a year prior.
- Quarterly revenue rose 12.6% to $25 billion, aided by strong domestic demand and increased rates.
- FedEx spun off its freight trucking unit on June 1 as part of a streamlining effort.
- The company is changing its fiscal year to align with the calendar year.
Global delivery firm FedEx announced it expects revenue to grow approximately 11% by 2026, alongside new annual earnings per share targets of $16.90 to $18.10. This outlook follows a reported increase in fourth-quarter profit, which rose to $6.31 per share from $6.07 in the prior year, driven by higher rates and strong domestic demand. Quarterly revenue climbed 12.6% to $25 billion.
The company is adjusting its fiscal year to align with the calendar year, a move that comes weeks after the June 1 spinoff of its freight trucking unit. This strategic streamlining aims to simplify operations and reduce costs. FedEx's core express segment saw a 14% revenue increase, while the now-spun-off freight business grew 5%.
FedEx, like rival UPS, is navigating evolving U.S. trade policies, including the end of duty-free, 'de minimis' shipments from major Chinese e-commerce retailers such as Shein and Temu, which has impacted shipping volumes. The company operates a fleet of 391 cargo jets and 317 turboprop planes, and reported a 66% surge in fuel costs during the quarter.