AI Takeaway
FDX delivered solid Q3 FY2026 results with revenue rising 8.3% YoY to $24.0B and net income surging 16.2% to $1.06B, though operating margin edged slightly lower as cost pressures offset top-line growth.
Revenue
$24B
++8.30% YoY
EPS (Basic)
$4.46
++17.68% YoY
Operating Income
$1.35B
++4.33% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-Q filing
Revenue increased 8.3% YoY to $24.0B in Q3 FY2026 (vs. $22.16B in Q3 FY2025), reflecting improved package volumes and pricing across FedEx's network segments, signaling a meaningful demand recovery in the freight and express markets.
Source: Source: 10-Q Income Statement, Q3 FY2026
Net income grew 16.2% YoY to $1.056B and diluted EPS rose 17.3% to $4.41, outpacing revenue growth and suggesting meaningful operating leverage and/or below-the-line benefits such as lower interest expense or favorable tax items.
Source: Source: 10-Q Income Statement, Q3 FY2026
Operating margin declined modestly to 5.62% from 5.83% in the prior-year period, indicating that cost pressures — likely in labor, fuel, or network restructuring — partially offset the benefit of higher revenues.
Source: Source: 10-Q Income Statement & Key Ratios, Q3 FY2026
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Upgrade to unlockDespite strong revenue growth, operating margin declined YoY to 5.62%, suggesting that labor, fuel, or network transformation costs are rising faster than revenues. Sustained margin compression could weigh on profitability if cost initiatives do not deliver expected savings.
Source: Source: 10-Q Income Statement & Key Ratios, Q3 FY2026
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Upgrade to unlockReported EPS of $5.25 versus the $4.18 analyst consensus — a +25.7% beat for Q3 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $24B | $22.16B | +8.30% |
Operating Income | $1.35B | $1.29B | +4.33% |
Net Income | $1.06B | $909M | +16.17% |
EPS (Basic) | $4.46 | $3.79 | +17.68% |
EPS (Diluted) | $4.41 | $3.76 | +17.29% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $94.73B | $85.04B | +11.39% |
Current Assets | $25.48B | $17.21B | +48.00% |
Current Liabilities | $17.29B | $13.9B | +24.40% |
Stockholders' Equity | $29.8B | $26.71B | +11.59% |
Cash & Equivalents | $8.01B | $5.13B | +55.95% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash FlowYTD | $5.66B | $4.52B | +25.30% |
Investing Cash FlowYTD | $-2.44B | $-2.66B | +8.46% |
Financing Cash FlowYTD | $2.88B | $-3.17B | +190.67% |
Dividends PaidYTD | $1.03B | $1.01B | +1.98% |
Share BuybacksYTD | $796M | $2.52B | -68.38% |
D&A | $1.11B | $1.07B | +4.32% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Margin | 5.6% | 5.8% | -0.21% |
Net Margin | 4.4% | — | — |
ROE | 3.5% | — | — |
ROA | 1.1% | — | — |
Current Ratio | $1.474 | — | — |
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Based on the filing data, FDX reported diluted EPS of $4.41 in Q3 FY2026, up 17.3% YoY from $3.76, and net income of $1.056B, up 16.2% YoY. Whether this beat Wall Street consensus estimates would require comparison to analyst forecasts, which are not included in the filing itself.
FDX posted revenue of $24.0B (+8.3% YoY), net income of $1.056B (+16.2% YoY), and diluted EPS of $4.41 (+17.3% YoY) in Q3 FY2026. Cash and equivalents surged 55.9% to $8.0B, though operating margin dipped slightly to 5.62% from 5.83%, reflecting ongoing cost pressures in the business.
FedEx's revenue grew 8.3% YoY to $24.0B in Q3 FY2026, compared to $22.16B in Q3 FY2025, driven by improved package volumes and pricing across its transportation network. This marks a meaningful acceleration in top-line growth for the company.
Based on the financial data, key risks include margin compression (operating margin fell to 5.62% from 5.83%), a dramatic increase in financing cash flows suggesting higher debt levels, and a 68.4% YoY reduction in share buybacks to $796M YTD. Low ROA of 1.11% also signals that FDX's large $94.73B asset base is not yet generating strong returns.
FDX's financial health appears solid but with some areas to watch: the company holds $8.0B in cash (+55.9% YoY), has a current ratio of 1.47x, and generated $5.66B in YTD operating cash flow (+25.3% YoY). However, low ROE (3.54%) and ROA (1.11%), combined with slight operating margin compression, suggest the company is still working to optimize returns on its large capital base.