FedEx reported better-than-expected revenue for its second quarter of fiscal year 2026, with sales rising 12.5% year on year to $25.01 billion, exceeding analyst estimates of $23.98 billion. Adjusted earnings per share came in at $6.31, a 6.6% beat over the consensus estimate of $5.92. However, the company issued adjusted EPS guidance for the upcoming financial year 2027 of $17.50 at the midpoint, missing analyst estimates by 7.4%. Operating margin declined to 6.2% from 8.1% a year earlier, while free cash flow margin improved to 7.2% from 3.4%. Shares fell 4.7% to $302.94 following the announcement.
FedEx CorporationFull-year EPS guidance missed estimates by 7.4%, and operating margin declined.