FedEx has reinstated its full-year profit outlook, signalling increased clarity about the company’s future business direction amidst ongoing tariff pressures. The adjusted earnings per share for the 2026 fiscal year are projected to be between $US17.20 and $US19, according to the company’s statement detailing its first-quarter results. The midpoint of this range is slightly below the $US18.25 average of analyst estimates compiled by Bloomberg. FedEx provides transportation, e-commerce and business services. The company offers integrated business applications through its independently operated companies.
FedEx anticipates revenue to grow by as much as 6 per cent this year, significantly higher than the 1.2 per cent average gain forecast by analysts. This sales forecast indicates that FedEx expects strong package volumes during the holiday season, which is typically its busiest period. The company’s Express unit saw positive results, driven by higher-margin priority packages, increased US parcel volumes, and savings from ongoing cost-cutting initiatives.
However, the company also reported that tariffs had a negative impact on international export volumes. Despite these challenges, the reinstated outlook suggests that FedEx is gaining a firmer understanding of its business trajectory. The company is actively managing costs and capital expenditures to navigate the evolving economic landscape. This strategic approach aims to improve efficiency and profitability across its various business segments.
