March 19 - FedEx, which is widely known for its overnight, air-reliant delivery services, raised its full-year adjusted earnings forecast on Thursday after reporting a rise in third-quarter profit and revenue. The company credited a pickup in deliveries during the critical holiday quarter for much of the improvement.
For the fiscal year ending May 31, FedEx now expects adjusted earnings per share of $19.30 to $20.10. In December the company had projected annual adjusted earnings of $17.80 to $19.00 per share, a change that reflected an upward adjustment to the low end of an earlier $17.20 to $19.00 range.
Management said operating results in its Express segment improved in the third quarter, supported by stronger U.S. and international package pricing, higher domestic package volumes and continued cost-reduction efforts. Those gains were partially offset by higher wages and incentive pay, rising transportation costs, the effects of global trade policy changes, and expenses tied to the grounding of MD-11 aircraft.
Adjusted earnings for the winter holiday quarter rose to $5.25 per share, up from $4.51 a year earlier. The company noted that this performance came even as it absorbed millions of dollars in unanticipated costs to replace trucks and planes after its MD-11 fleet was grounded following a fatal cargo plane crash in November 2025.
At the time of the grounding, FedEx had 28 Boeing MD-11 freighter jets in operation. The Federal Aviation Administration grounded those aircraft after a crash that killed 14 people, including three pilots on board. Company executives have previously indicated that they expect the MD-11 fleet to be returned to service by the end of May.
FedEx also raised its full-year revenue outlook, now expecting top-line growth in the range of 6.0% to 6.5% year-over-year, up from its earlier forecast of 5% to 6% growth.
The company is in the midst of a multi-year restructuring that includes cutting billions of dollars in costs, combining its separate Ground and Express delivery operations, introducing additional automation in some parts of its network, and spinning off its Freight trucking business on June 1.
The report also referenced a valuation tool used by some market analysts. That tool reportedly uses a mix of 17 industry valuation models to estimate fair value for stocks, including FedEx, though this note was presented as an informational addendum rather than as part of the company disclosure.
What this means
FedEx's upgraded profit and revenue guidance reflects improved pricing and volume trends in its Express unit during the holiday quarter, tempered by higher operating costs and the short-term impact of the MD-11 grounding. The company continues structural changes intended to reshape operations and reduce costs over multiple years.