NEW YORK: FedEx Corp has raised its profit and sales guidance for the year, another promising sign for parcel carriers heading into the all-important holiday shipping season.
Adjusted earnings will be US$18 to US$18.60 a share in 2026, up from a prior forecast range topping out at US$18.10, FedEx said in a statement as it reported quarterly results.
The company now sees revenue growth of about 12%.
The improved outlook is a boon for the company’s ongoing network overhaul and suggests shipping demand is holding strong heading into the busy year-end months, despite high prices and economic volatility.
FedEx echoed rival United Parcel Service Inc, which raised its sales and profit outlook earlier this week.
For the three months ending Sept 30, FedEx’s adjusted earnings rose to US$3.74 a share. Its revenue and operating margin improved as well.
While the report was positive, the stock was down in postmarket trading, possibly reflecting confusion around a change in FedEx’s reporting calendar that made it difficult to compare with analyst estimates.
After a brief drop of 7.1%, the shares pared declines and were trading 1.9% lower as of 4.45pm in New York.
This year has been one of transition for FedEx, which recently spun off its freight division and sold its supply-chain unit to CMA CGM Group, moves to allow FedEx to focus on its core parcel business. —Bloomberg
