Should You Buy, Sell or Hold FedEx Stock Before Q2 Earnings?

Core Viewpoint - FedEx Corporation (FDX) is expected to report its second-quarter fiscal 2026 results on December 18, with earnings per share estimated at $4.05 and revenues at $22.9 billion, reflecting a year-over-year revenue increase of 4.1% [1][2][8] Earnings Estimates - The Zacks Consensus Estimate for second-quarter fiscal 2026 earnings has been revised upward by 1.5% over the past 60 days, with the current estimate matching the year-ago actual [2] - The earnings per share estimate has shown a consistent upward trend, increasing from $3.99 to $4.05 over the last 60 days [3] Performance Drivers - FDX's results are anticipated to benefit from high package volumes due to increased demand during the holiday shipping season, with management expecting a moderately strong peak season [5] - Cost-reduction initiatives from the DRIVE program, including reduced flight frequencies and staff cuts, are expected to support margins in the fiscal second quarter [6] Strategic Developments - An update on FDX's multi-year deal with Amazon, which involves delivering select large packages, is expected, especially following UPS's decision to lower its volumes with Amazon [7] - FDX's stock has outperformed UPS and the broader transportation industry in Q2, trading at a discount on a forward Price/Sales basis [11][14] Investment Appeal - FDX's strong earnings history and cost control measures are seen as positive indicators for investment, with management targeting $1 billion in transformation-related savings [19][20] - The company has raised its quarterly dividend by 5.1% to $1.45 per share, indicating a commitment to shareholder returns [18]