Toro Company vice president Amy Dahl to depart at end of September
FedEx Corporation shares are surging on September 19, 2025, following a strong first-quarter fiscal 2026 earnings report that exceeded Wall Street expectations on both revenue and profit. The package delivery giant reported adjusted earnings per share of $3.83, beating analyst estimates of $3.59, while revenue came in at $22.24 billion versus expectations of $21.66 billion. The company’s cost-cutting initiatives and improved operational efficiency have begun to pay dividends, with operating margins expanding to 6% from 5.2% in the prior year quarter, demonstrating management’s ability to navigate challenging global trade conditions while maintaining profitability.
Q1 Earnings Beat Driven by U.S. Volume Growth and Profit Gains
FedEx’s first-quarter fiscal 2026 results showcase the company’s resilience in a challenging operating environment marked by global trade uncertainties and tariff impacts. The company posted net income of $820 million, or $3.46 per share, compared to $790 million in the year-ago period, with adjusted net income reaching $910 million or $3.83 per share. CEO Raj Subramaniam emphasized that these results reflect FedEx’s commitment to improving customer experience and demonstrate the resilience built into their network despite significant volatility in global trade.
The company’s domestic operations proved to be a bright spot, with average daily volumes in the U.S. increasing by 6% overall and domestic package volumes rising by 5%. This growth helped offset the impact of international headwinds, particularly from the elimination of the “de minimis” exception that previously allowed shipments under $800 to enter the U.S. duty-free. While international export volumes declined by 3%, the strength in domestic deliveries and effective cost management enabled FedEx to exceed profit expectations and maintain solid revenue growth of 2% year-over-year.
Cost-Saving Plan Expands Margins and Strengthens Outlook
FedEx’s strategic cost-reduction initiatives are clearly bearing fruit, with the company successfully implementing its $1 billion cost-saving plan for fiscal 2026. The company has been parking planes, closing facilities, and merging operational units to streamline operations and improve efficiency. These efforts contributed to the expansion of operating margins from 5.2% to 6% year-over-year, demonstrating management’s ability to extract value from their network optimization strategies.
Looking ahead, FedEx has provided a cautiously optimistic outlook for fiscal 2026, forecasting revenue growth in the range of 4% to 6%, significantly above Wall Street’s estimate of 1.2%. The company expects full-year adjusted earnings per share between $17.20 and $19.00, with a midpoint of $18.10 that is slightly below analyst estimates of $18.21. Despite facing approximately $150 million in quarterly revenue headwinds from trade policy changes, particularly the loss of de minimis exemptions, FedEx continues to execute on its strategic initiatives, including the planned spin-off of FedEx Freight into a separate publicly traded company by June 2026.
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