FedEx falls 4% as CY2026 profit forecast misses expectations despite Q4 beat

Investing.com -- FedEx shares fell about 4% in after-hours trading on Tuesday after the package delivery giant issued a calander year 2026 earnings outlook that came in below Wall Street expectations, overshadowing better-than-expected fourth-quarter results.

The company reported adjusted earnings per share of $6.31 for the fourth quarter, beating analysts' estimates of $5.92. Revenue came in at $25 billion, ahead of the consensus forecast of $24.01 billion, helped by higher shipping rates.

However, FedEx forecast fiscal 2026 earnings per share of $16.90 to $18.10, well below analysts' average estimate of $19.86. The company said it expects revenue to grow about 11% in the year ahead.

The outlook highlights the challenges facing the global delivery sector as FedEx and rival United Parcel Service contend with changing U.S. trade policies and weaker e-commerce shipping demand. The end of duty-free "de minimis" treatment for low-value imports from China-linked retailers such as Shein and Temu has pressured shipment volumes tied to cross-border online shopping.

While FedEx's core package delivery business continues to face softness in e-commerce, investors are looking for signs that growth in its premium overnight delivery segment can help offset weaker demand elsewhere.

The quarterly results also included the trucking business that FedEx spun off earlier this month. FedEx shares had closed at $316.83 before the earnings release and were down roughly 4% in extended trading following the company's guidance.

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