FDX US S&P 500Russell 1000 Earnings call
FedEx (FDX) · Q2 2026 results and valuation
Share price: $322.63 · 2026-11-11
FedEx provides a portfolio of transportation, e-commerce, and business services to customers and businesses worldwide. The company operates an integrated global network that includes express transportation and freight forwarding services. Source: 10-K annual report (2026-07-20)
Results Q2 2026 vs Q1 2026 · previous quarter · fiscal Q4 2026 · published 23 Jun 2026 and 19 Mar 2026
Net income turned to a loss from a profit last quarter. Management sounded about as positive as a typical company call, in its script and in answers to analysts.
1 · Numbers
Turned loss
Net income vs Q1 2026
Outlook given
Net income -2.84B vs 1.06B
Revenue +4.2%
Why Against the same quarter last year, net income decreased because the results include a noncash impairment charge of $23 million related to the decision to permanently retire an additional 10 jet aircraft.
2 · How management spoke
Typical
Less upbeat than 62% of company calls
Answers to analysts: very upbeat, in line with the script.
Last call it was different: the answers were more upbeat than the script.
3 · What stood out
FedEx expects calendar year 2026 adjusted earnings from continuing operations to be between $16.90 and $18.10 per diluted share based on current assumptions.
Valuation
Is FedEx undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2026-05-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 1.7% growth a year (3-year revenue growth), the model's fair value is $229.60 a share — the stock trades 41% above it. Today's price assumes 5.6% growth a year.
Current price
$322.63
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+5.6% for 10 yrs
Fair value / share
$229.60
Buy below
$172.20
Price vs fair value
Overvalued 41%
Price vs buy-below price
Overvalued 87%
Read between the lines
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Guidance
The company expects calendar year 2026 adjusted earnings from continuing operations to be $16.90 to $18.10 per diluted share based on current assumptions.
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Figure
SEC revenue increased by 14% due to yield strength across all services and volume growth aligned with the company's commercial strategy.
Source quote
“SEC revenue was up 14%. Supported by yield strength across all services, and volume growth aligned with our commercial strategy.”
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Guidance
Consolidated adjusted operating income improved $491 million or 8% for the full year.
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Figure
Transition year assumptions result in an estimated $11.30 of adjusted EPS for the June-December 2026 period, representing 20% year over year growth.
Source quote
“Transition year assumptions translate to an estimated $11.30 of adjusted EPS for the June-December 2026 period, representing 20% year over year growth.”
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Figure
The company reported 19% profit growth at the midpoint of the range and 20% earnings per share growth for the period.
Source quote
“And that is reflected in our 19% at the midpoint of the range of our profit growth and 20% EPS growth.”
4 more
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Guidance
The company exceeded its $1 billion transformation related savings target through progress and a sharp focus on structural cost reduction.
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Figure
FedEx aims to achieve $1 in savings from Network 2.0 by the end of this calendar year and a total of $2 billion by the end of CY 27.
Source quote
“Helping us set up Network 2.0 and associated 1 FedEx savings by the end of this calendar year. And the full $2 billion by the end of CY 27.”
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Guidance
The company remains committed to achieving its target of $6 billion in adjusted free cash flow for calendar year 2026.
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Key theme
The significant majority of incremental profit from yield was due to base price increases.
Source quote
“In fact, the significant majority of our incremental profit from yield was due to base price increases.”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“But overall, from an overall perspective, excited about the momentum and see both international and domestic having absolute profit improvement as well as margin improvement in the transition in the...”
“Strong value proposition, and an outstanding execution of our profitable growth strategy which is translating to strong free cash flow and value creation.”
“Supporting our customers with innovation and reliability, growing in key high value verticals, and delivering profitable revenue growth.”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-05-31)
| Metric | Q2 2026period end 2026-05-31 | Q1 2026period end 2026-02-28 | Change | Q2 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 25.01B | 24.00B | +4.2% | 22.22B | +12.5% |
| Operating income | 1.55B | 1.35B | +15.1% | 1.79B | −13.5% |
| Net income | -2.84B | 1.06B | Turned loss | -2.44B | Loss widened |
| EPS | 6.64 | 4.41 | +50.6% | 6.82 | −2.6% |
| P/E today 8.6 | 17.9 | 16.6 | +1.3 | 10.5 | +7.4 |
Topics
Most discussed now
- FEC posted higher f y 2026 results year over year with adjusted operating income up $940 million on almost $7...
- On a consolidated basis in FY 2026, FedEx delivered $20.24 in adjusted earnings per share.
- FedEx expects very strong absolute performance in June Q3 will just traditionally will be its weakest quarter from an absolute...
- From an underlying year over year growth perspective, FedEx is confident in the moment momentum of the business driven by...
- In Europe, FedEx has a very disciplined growth strategy.
Faded since Q1 2026
- Fading As FedEx recently outlined at its Investor Day, the entire FEC organization is aligned and making progress across its 4...
- Fading International export package revenue also grew a strong 8%.
- Fading FedEx continues to win profitable share in the global airfreight market, delivering 14% growth in international priority and economy…
- Fading FedEx looks at those as good cost incurrences primarily because they're related to building out its IT infrastructure, which it...
Latest announcements
Official filings, newest first. Summaries are generated from each filing and its attachment; every figure is checked against the source.
- Results of operations · SEC 8-K
- Results of operations · SEC 8-K
- Director or officer change · SEC 8-K
FedEx appointed Jamere Jackson as Executive Vice President and Chief Financial Officer effective November 30, 2026, succeeding Claude Russ, while the company reports annual revenue of $86 billion.
- Shareholder vote results; Other events · SEC 8-K
Stockholders approved the election of eleven directors, the executive compensation, and the appointment of Ernst & Young LLP as the independent auditor.
- Other events · SEC 8-K
- Director or officer change · SEC 8-K
FedEx Corporation approved a new Executive Severance Plan on July 20, 2026, to govern all future executive separations and replace previous Management Retention Agreements.
- Results of operations · SEC 8-K
FedEx changed its fiscal year end to December 31, 2026, and spun off its less-than-truckload freight transportation services business into a new publicly traded company on June 1, 2026.
- Other events · SEC 8-K
Catalyst calendar
management-stated targets — from the latest earnings call; plans, not promises.
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June 25
FedEx Freight separate earnings call
Source quote
“FedEx Freight will host a separate earnings call on June 25.”
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before peak
full fleet of MD-11 aircraft back in service
Source quote
“We expect to have the full fleet back in service before peak.”
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calendar year 2026
adjusted earnings from continuing operations
Source quote
“Based on our current assumptions, we expect calendar year 2026 adjusted earnings from continuing operations to be $16.90 to $18.10 per diluted share.”
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June through December
transition year adjusted EPS growth
Source quote
“This range implies 20% adjusted EPS growth in the June through December transition year.”
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2029
Investor Day commitments
Source quote
“We remain firmly on track to achieve our Investor Day commitments for 2029 with clear proof points in the quarter.”