FedEx Earnings Preview: What to Expect

Company Overview - FedEx Corporation (FDX) has a market capitalization of $66.6 billion and operates globally in transportation, e-commerce, and business services through its Federal Express and FedEx Freight segments [1] Upcoming Earnings Report - FedEx is scheduled to report its Q2 2026 results on December 18, with analysts expecting an adjusted EPS of $4.05, consistent with the same quarter last year [2] - For fiscal 2026, analysts forecast an adjusted EPS of $18, a slight decline of over 1% from $18.19 in fiscal 2025, but anticipate a growth of 13.8% year-over-year to $20.48 in fiscal 2027 [3] Stock Performance - Over the past 52 weeks, FedEx shares have experienced a marginal decline, underperforming compared to the S&P 500 Index, which increased nearly 12%, and the Industrial Select Sector SPDR Fund, which gained 13.5% [4] Recent Financial Results - Following the Q1 2026 results released on September 18, FedEx shares rose by 2.3% due to strong year-over-year earnings growth, with adjusted operating income reaching $1.30 billion and adjusted EPS increasing to $3.83, driven by robust U.S. domestic package revenue and cost reductions [5] - The fiscal 2026 outlook includes projected revenue growth of 4% to 6% and an adjusted EPS of $17.20 to $19, excluding certain costs [5] Share Repurchase and Spin-off Plans - FedEx completed $500 million in share repurchases during the quarter and is progressing towards the planned spin-off of FedEx Freight in June 2026 [6] Analyst Ratings - The consensus view on FedEx stock is cautiously optimistic, with a "Moderate Buy" rating. Among 29 analysts, 16 recommend "Strong Buy," 2 "Moderate Buys," 9 suggest "Hold," 1 has a "Moderate Sell," and 1 advises "Strong Sell" [7] - The stock is currently trading above the average analyst price target of $276.39 [7]