FedEx shares fell about 4% in after-hours trading on Tuesday after the package delivery company issued a fiscal 2027 profit forecast that missed Wall Street expectations, even though its fourth-quarter results outperformed estimates.
For the fourth quarter, FedEx reported adjusted earnings per share of $6.31, topping analysts' estimates of $5.92. Revenue for the period was $25 billion, ahead of the consensus forecast of $24.01 billion, driven in part by higher shipping rates.
Despite the stronger quarterly headline numbers, the company projected fiscal 2027 earnings per share in a range of $16.90 to $18.10 - below the analysts' average estimate of $19.86. FedEx said it expects revenue to increase by about 11% in the coming fiscal year.
The contrast between the quarterly beat and the forward outlook underscores the continuing challenges facing the global delivery sector. FedEx and rival United Parcel Service are navigating shifting U.S. trade policies and a decline in e-commerce shipping demand. The end of duty-free "de minimis" treatment for lower-value imports originating from China-linked retailers such as Shein and Temu has been cited as a factor pressuring volumes tied to cross-border online shopping.
Investors remain focused on whether growth in FedEx’s premium overnight delivery offerings can counteract weakness in core package volumes tied to e-commerce. The company’s quarterly results also incorporated the trucking business that FedEx spun off earlier this month.
Shares had closed at $316.83 before the earnings release and were down roughly 4% in extended trading after the company issued its fiscal 2027 guidance.
Contextual summary: FedEx delivered a fourth-quarter performance that beat consensus on both earnings and revenue, yet the company’s fiscal 2027 EPS outlook fell short of analyst expectations. Management expects about 11% revenue growth next year, but market reaction was negative as investors digested the gap between guidance and estimates amid industry headwinds.