Oct 28 (Reuters) - FedEx forecast annual profit above estimates on Wednesday after it reported a 28% rise in third-quarter earnings, led by improved pricing, higher volumes and cost-saving efforts.
The Memphis-based company expects 2026 adjusted profit in the range of $18-$18.60 per share, above analysts' expectation of $17.73 per share, according to data compiled by LSEG.
FedEx switched to reporting on a calendar rather than fiscal-year basis beginning in the latest quarter.
It said results improved due to better returns on packages, higher volumes and ongoing cost savings. Those factors were partly offset by the cost of hiring additional transportation, increased employee wages and compensation as well as changing US tariff policies.
"We remain committed to disciplined operational execution to reduce our cost-to-serve while focusing on profitable growth," CEO Raj Subramaniam said.
FedEx, a bellwether for global trade, reported third-quarter adjusted profit of $3.74 per share, up from $2.93 per share the year before.
(Reporting by Lisa Baertlein and Nandan Mandayam; Editing by Pooja Desai)