FedEx raises FY26 adjusted EPS guidance to $17.80-$19
FedEx reported strong Q2 FY26 results with 19% adjusted EPS growth, raised full-year guidance despite MD-11 grounding and trade headwinds. Management highlighted B2B revenue wins (Amazon, BMW), network flexibility during peak, and progress on Network 2.0 and Freight spinoff. Q2 adjusted EPS of $4.82 (+19% YoY); raised FY26 EPS guidance to $17.80–$19.
Buzzberg 분석FedEx raises FY26 adjusted EPS guidance to $17.80-$19FedEx reported strong Q2 FY26 results with 19% adjusted EPS growth, raised full-year guidance despite MD-11 grounding and trade headwinds. Management highlighted B2B revenue wins (Amazon, BMW), network flexibility during peak, and progress on Network 2.0 and Freight spinoff. Q2 adjusted EPS of $4.82 (+19% YoY); raised FY26 EPS guidance to $17.80–$19.전체 분석 보기분석 접기
FedEx reported strong Q2 FY26 results with 19% adjusted EPS growth, raised full-year guidance despite MD-11 grounding and trade headwinds. Management highlighted B2B revenue wins (Amazon, BMW), network flexibility during peak, and progress on Network 2.0 and Freight spinoff. Q2 adjusted EPS of $4.82 (+19% YoY); raised FY26 EPS guidance to $17.80–$19.
MD-11 grounding cost $25M in Q2, expected total ~$175M with heavy Q3 impact; lost ~4% of global cargo capacity during peak.
FEC revenue +8% YoY, driven by 12% US domestic package growth; B2B contributed nearly half of revenue growth.
Won incremental B2B business from BMW and Amazon heavyweight; healthcare and data center verticals gaining traction.
Revenue$23.469B
+6% QoQ
EPS$4.82
+26% QoQ
Gross margin26.42%
reported
Op margin5.87%
reported
이번 분기에 달라진 점
01
Guidance
FedEx raises FY26 adjusted EPS guidance to $17.80-$19
Guidance · revenue to 5.5%
02
Supply
MD-11 grounding pressures Q3 and pushed back return to Q4
Q2 adjusted EPS of $4.82 (+19% YoY); raised FY26 EPS guidance to $17.80–$19.
03
Spin-off
FedEx Freight spinoff on track for June 1, 2026
MD-11 grounding cost $25M in Q2, expected total ~$175M with heavy Q3 impact; lost ~4% of global cargo capacity during peak.
04
Demand
B2B services drove nearly half of FEC revenue growth
Management frequently emphasized strong execution, resilience, and raised full-year EPS guidance despite headwinds, projecting confidence in their transformation and market position.
AI, 자본지출 및 수요 분석
AI
플랫폼 및 수익화
FedEx is scaling AI adoption to all employees and pursuing commercialization of its proprietary logistics data insights, exemplified by the ServiceNow collaboration.
수요
수주 및 전환
B2B services drove nearly half of FEC revenue growth. Management frequently emphasized strong execution, resilience, and raised full-year EPS guidance despite headwinds, projecting confidence in their transformation and market position.
자본지출
투자 및 생산능력
CAPEX for FY26 is targeted at $4.5 billion, with year-to-date spend of $1.4 billion, directed primarily toward aircraft and vehicle fleet maintenance, Network 2.0 facility enhancements, and hub modernization.
톤 · Confident
Management frequently emphasized strong execution, resilience, and raised full-year EPS guidance despite headwinds, projecting confidence in their transformation and market position.
공급망 알파
A1
FedEx grounded 25 of 34 MD-11 aircraft during peak, losing ~4% of global cargo capacity. Costs of $175M are concentrated in Q3, impacting peak season capacity and forcing expensive outsourced lift.
FedEx cut trans-Pacific Asia bond capacity by 25% and third-party lift by 35%, shifting capacity to Asia-Europe lanes which have over 75% B2B mix and high load factors.
“We reduced our purple tail trans-Pacific Asia bond capacity by about 25% year over year. We also decreased our third party or white tail capacity by nearly 35%.”
FedEx grounded 25 of 34 MD-11 aircraft during peak, losing ~4% of global cargo capacity. Costs of $175M are concentrated in Q3, impacting peak season capacity and forcing expensive outsourced lift. — Temporary air cargo capacity loss of 4% in peak season could shift some demand to competitors like UPS and increase costs for shippers, while Boeing's involvement in inspection protocols may affect fleet return timing.
“The onboarding of our new Amazon business, which is focused on large and heavyweight shipments, is also going well.”
Bre CarreriExecutive Vice President and Chief Customer Officer
… execution in Q2 led to a 7% year-over-year revenue growth across the enterprise. Busy, busy, busy. At FEC, revenue was up 8%, driven by 12% U.S. domestic package revenue growth with strength across all services. FedEx freight revenue declined 2%, pressured by lower average daily shipments. We grew average daily domestic volume by 6%. Our recent B2B healthcare win supported robust growth in the United States priority and deferred express services. The onboarding of our new Amazon business, which is focused on large and heavyweight shipments, is also going well. As expected, international export volumes declined, driven again by lower volumes on the China to U.S. lane. Raj mentioned how we're shifting some capacity to the Asia-Europe lane, which along with strong growth on the intra-Asia lane is providing a partial offset. Additionally, we continued to grow U.S. international outbound revenue, which further offered another offset, and, of course, it has high flow-through. At FedEx Freight, weakness in the industrial economy again weighed on our average daily shipments, which were down 4%. This dynamic remains consistent with broader LTL industry trends. Importantly, our growing …
Bre CarreriExecutive Vice President and Chief Customer Officer
… our sustained commitment to maintaining industry-leading yields. Now, let me share a few highlights on our commercial priorities. As part of our B2B focus, we have developed vertical strategies, each with dedicated leadership and resources in our targeted growth areas. That B2B contributed to nearly half our revenue growth this quarter demonstrates this strategy is working. It is helping us sustain and win new business in priority areas like healthcare and automotive. For example, this quarter, we won incremental B2B business from BMW. This win is a result of our global reliability and scale, our strong service for time critical aftermarket and production deliveries, and our collaborative shipping tool. Further, technology companies are investing extraordinary amounts of CapEx in global data center infrastructure over the next several years. As such, we have formalized our work in creating a data center and infrastructure vertical team. This will better support existing customers and also help us acquire new high-tech customers. I am confident our dedicated sales and solutions team will enable FedEx leadership in this high-value market with significant growth ahead. We are very …
FedEx's partnership with ServiceNow aims to monetize logistics data by integrating into procurement workflows, opening a new revenue stream.
“Our recently announced strategic collaboration with ServiceNow marks an important milestone designed to make life easier for those who manage complex sourcing and procurement operations.”
… challenges more effectively than ever before. Importantly, we are customizing the curriculum to be directly relevant to each team member's specific role, experience level, and existing AI fluency. We also continue to explore new approaches that leverage our real-world operational data platform. We are actively pursuing opportunities to bring digital solutions to the market, starting with logistics intelligence insights. Our recently announced strategic collaboration with ServiceNow marks an important milestone designed to make life easier for those who manage complex sourcing and procurement operations. Through this collaboration, we're giving businesses a single system that anticipates, adapts, and acts before they experience supply chain disruptions. And by integrating into ServiceNow's procurement and supply chain solutions, we are beginning to monetize the proprietary insights that only FedEx can provide. Enterprises need access to real-world logistics intelligence to power their AI systems and workflows. And this partnership demonstrates market demand for what we have built. In closing, I want to recognize our team for delivering another strong quarter while navigating a …
FedEx grounded 25 of 34 MD-11 aircraft during peak, losing ~4% of global cargo capacity. Costs of $175M are concentrated in Q3, impacting peak season capacity and forcing expensive outsourced lift. — Temporary air cargo capacity loss of 4% in peak season could shift some demand to competitors like UPS and increase costs for shippers, while Boeing's involvement in inspection protocols may affect fleet return timing.
“We are working closely with Boeing and FAA to ensure the safety of our own MD-11 fleet.”
FedEx grounded 25 of 34 MD-11 aircraft during peak, losing ~4% of global cargo capacity. Costs of $175M are concentrated in Q3, impacting peak season capacity and forcing expensive outsourced lift. — Temporary air cargo capacity loss of 4% in peak season could shift some demand to competitors like UPS and increase costs for shippers, while Boeing's involvement in inspection protocols may affect fleet return timing.
… types of aircraft within our FedEx-owned fleet, adding capacity via third-party lift, and adjusting the timing of maintenance for our remaining fleet while staying compliant with regulatory guidelines. As a result, we were able to mitigate the operational and financial impacts of the MD-11 groundings, which ultimately pressured our Q2 adjusted operating income by about $25 million. For the final week of peak, we have additional contingencies in place. We lost about 4% of our global cargo capacity before mitigating actions during our busiest season. As a result, our cross-functional teams are working around the clock to minimize any service disruption. And looking beyond peak, they're extremely focused on maintaining high service levels, the benefit of more time to plan. We'll keep you posted on the expected timing of the MD-11 return to service. Network transformation remains a key priority for us. In support of this ongoing transformation, in October, we named Kawal Preet as Executive Vice President of Planning, Engineering, and Transformation. Kawal is known for creating high-performance cultures. With nearly 30 years of institutional and industry expertise, The depth of …
FedEx cut trans-Pacific Asia bond capacity by 25% and third-party lift by 35%, shifting capacity to Asia-Europe lanes which have over 75% B2B mix and high load factors.
… truly showcased the importance of network integration and optimization, along with the power of a resilient industrial network, both shifting Global trade patterns and the unexpected grounding of our MD11 fleet required significant changes to our network, which we implemented swiftly and successfully. To that end, let me provide a quick update on how we flexed our network during the quarter. From a global trade perspective, We reduced our purple tail trans-Pacific Asia bond capacity by about 25% year over year. We also decreased our third party or white tail capacity by nearly 35%. We continue to shift some of our capacity to the Asia to Europe lane. And importantly, these flights typically have an attractive B2B mix of over 75% with high load factors. When we grounded our MD-11 fleet, our focus as always was on safety above all, making sure our planes would be inspected and as safe as possible. We're also focused on helping our customers and providing technical support to the regulators. Of the 34 MD-11s we own, 25 were in operation at the time of the groundings. Our network planning team immediately implemented contingencies, prioritizing protecting our customer …
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