FedEx Corp (NYSE:FDX) stock rose 1.81% (As on March 20, 1:58:48 AM UTC-4, Source: Google Finance) after the company reported strong fiscal third-quarter earnings, exceeding optimistic analyst expectations, and raised full-year guidance once again. For the quarter, FedEx reported adjusted operating income of $1.62 billion, up 7% year over year. Consolidated operating income improved in the third quarter, reflecting strength in U.S. domestic and International Priority package yields, continued cost savings from transformation initiatives, and increased U.S. domestic package volume. Federal Express segment revenue grew 10% to $21.2 billion, with operating income up 21%to $1.6B. FedEx Freight, which will be spun off as a separate company in June 2026, saw revenue decline 5% to $2 billion and income plunge 97%. On February 5, 2026, FedEx Freight completed the issuance of $3.7 billion of senior notes.

Moreover, on February 9, 2026, FedEx announced that, together with Advent International, A&R Investments, and PPF Group, it reached a conditional agreement on a recommended all-cash offer to take InPost private at €15.60 per share. The transaction is subject to regulatory approvals and customary closing conditions and is expected to close in the second half of 2026. FedEx’s minority investment is anticipated to be accretive to FedEx earnings in the first year, with incremental accretion thereafter.

FDX in the third quarter of FY 26 has reported the adjusted earnings per share of $5.25, beating the analysts’ estimates for the adjusted earnings per share of $4.09. The company had reported the adjusted revenue growth of 8 percent to $24 billion in the third quarter of FY 26, beating the analysts’ estimates for revenue by $520 million.

FedEx said it now expects fiscal year 2026 revenue to grow 6.25% at the mid-range vs. prior forecast of 5.5%, with adjusted EPS of $19.30 to $20.10, up from the prior range of $17.80 to $19. FedEx now expects permanent cost reductions of more than $1 billion in transformation-related savings in FY26 based on structural cost reductions and the progress of its network integration effort, compared to the prior forecast of $1 billion. The Memphis, Tennessee-based parcel and logistics power plans to close 475 parcel terminals by the end of 2027, including 10 more in New York and Pennsylvania by this June. Capital spending is projected at $4.1 billion, down from the $4.5 billion forecast in December with a priority on investments in network optimization and efficiency improvement, including fleet and facility modernization and automation.