FedEx smashes earnings forecasts with $5.25 per share in Q3

FedEx has delivered stronger-than-expected financial results for its third fiscal quarter. The company's adjusted earnings reached $5.25 per share, well above the $4.14 predicted by analysts. Following the announcement, its shares jumped 8% in after-hours trading.

The quarter saw revenue climb to $24 billion, surpassing market expectations of $23.4 billion. Higher pricing, increased package volumes in the U.S., and cost-cutting measures all contributed to the strong performance. However, challenges remained, including the grounding of FedEx's MD-11 fleet due to an FAA flight ban, which impacted operations.

The Middle East conflict also disrupted air cargo routes, affecting around 8% of the company's international export volume. Despite these setbacks, FedEx now expects its 28 MD-11 aircraft to return to service by the end of May.

Looking ahead, the company has raised its annual adjusted earnings forecast to between $19.30 and $20.10 per share, up from the previous range of $17.80 to $19.00. Revenue growth for the fiscal year is now projected at 6.0–6.5%, a significant increase from earlier estimates.

This financial boost has also shifted market dynamics. On March 19, 2026, FedEx overtook UPS in market capitalisation for the first time, reaching approximately $82.23 billion. The company's shares have surged nearly 40% over the past two years, while UPS has seen a comparable decline.

FedEx's latest results have strengthened its position in the logistics sector. With higher earnings, improved revenue forecasts, and a growing market cap, the company continues to outperform expectations. The return of its grounded fleet and ongoing cost controls will likely shape its performance in the coming months.