FedEx stock price rises on strong earnings report and optimistic outlook

MaticHoleFiller · 2026-03-29T13:03:24+00:00

FedEx stock price rose by 1.9%, with third fiscal quarter earnings exceeding expectations, revenue reaching $24 billion, and adjusted earnings per share of $5.25. The company has raised its full-year revenue and profit forecasts and expects to save over $1 billion in costs. Although analysts are optimistic about the outlook for the courier business, the freight division remains volatile. The company plans to spin off the freight business into an independent company.

MaticHoleFiller

2026-03-29 13:03:24

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FedEx’s stock price rose 1.9% in early trading on Friday. This followed the company’s release of its third-quarter earnings, which includes the busy holiday shopping season, with both revenue and profit exceeding Wall Street expectations. In this quarter, FedEx’s revenue grew by 8% to $24 billion, and adjusted earnings per share were $5.25, both higher than the consensus of analysts compiled by Visible Alpha.

The shipping giant reported that its average daily package volume increased by 3% year-over-year, and revenue per package rose by 6%. The company also raised its full-year revenue growth and profit expectations, and stated that its latest cost-cutting plan is expected to save over $1 billion, higher than the previously forecasted $1 billion.

Friday’s increase indicates that investors are satisfied with FedEx’s recent performance. Earlier, concerns about President Trump’s tariff policies potentially affecting shipping demand had pressured the stock for most of last year.

Morgan Stanley analysts noted that Thursday’s results showed FedEx experienced an “exceptionally strong peak season,” but warned that, due to the express business exceeding expectations while the freight business remained below expectations, FedEx’s earnings still face volatility. These analysts maintained their “underweight” rating but raised their price target from $220 to $230. The new price target implies about a 35% decline from Thursday’s closing price.

FedEx stated that the work to spin off its freight business into an independently listed company (stock code “FDXF”) is expected to be completed by June 1, and announced that the new freight company will hold its first Investor Day on April 8.

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