Core Insights - FedEx Corporation (FDX) is scheduled to report its first-quarter fiscal 2026 results on September 18, 2025, after market close [1] - The Zacks Consensus Estimate for earnings is $3.68 per share, reflecting a 2.2% increase from the previous year, while revenues are expected to be $21.8 billion, indicating a 0.8% increase [2] Earnings Performance - FDX has a mixed earnings surprise history, with an average surprise of -5.53% across recent quarters [3][4] - The company is expected to face challenges in average daily shipments due to weak demand and tariff-related tensions [5] Segment Analysis - The Express unit, FDX's largest segment, is anticipated to experience volume weakness, although revenues may increase slightly compared to the first quarter of fiscal 2025 [6] - Cost-reduction initiatives from the DRIVE program are expected to aid bottom-line performance, despite a marginal increase in adjusted operating expenses [7] Strategic Developments - An update on FDX's multi-year deal with Amazon is anticipated, which involves delivering select large packages for the e-commerce giant [7][8] - The FDX-Amazon deal comes after rival UPS decided to lower its volumes with Amazon, indicating a strategic shift in partnerships [9] Market Position - FDX shares have outperformed the Zacks Transportation—Air Freight and Cargo industry, increasing by 5.9% in the first quarter of fiscal 2026, compared to a 3.2% decline in the industry [12] - FDX is trading at a discount based on forward Price/Sales (P/S) ratios compared to the industry average and UPS, with a Value Score of A [14] Long-term Outlook - Despite current challenges, FDX has a long-term earnings growth rate of 10.4%, higher than the industry average of 9.5% [19] - The company has raised its quarterly dividend by 5.1% to $1.45 per share, indicating a commitment to rewarding shareholders [18] Investment Considerations - Current market conditions and uncertainties suggest that it may not be the best time to purchase additional shares of FDX [19][20] - Investors are advised to wait for management's commentary on tariffs and updated guidance before making investment decisions [20]