FedEx Dismisses Direct Impact From Ongoing Tensions In Middle East But Raises Concerns On Rising Fuel Price

• The company now expects 6.0% to 6.5% revenue growth rate year-over-year in fiscal 2026 and raised its diluted earnings per share estimate.
• The planned spin-off of FedEx Freight into a new publicly traded company is on track for June 1, 2026, the company said.
• For Q3, diluted and adjusted earnings per share for the quarter came at $5.25.

FedEx (FDX) said on Thursday that it does not see ongoing geopolitical conflicts in the Middle East impact its operations, despite the global nature of its operations.  

“While we do not expect ongoing geopolitical conflicts between Russia and Ukraine and in the Middle East, or escalations or expansions thereof, to have a direct material effect on our business or results of operations, the broader consequences, including increased fuel prices and volatility in shipping patterns, are adversely affecting the global economy and may also have the effect of heightening other risks,” FedEx said in a filing.

The company clarified the impact after posting a third-quarter (Q3) earnings beat and announcing raised guidance. Shares of the company rallied 9% after-hours at the time of writing.

Q3 Earnings

FedEx Q3 revenue came in at $24 billion, compared to $22.2 billion in the corresponding quarter of fiscal 2025, and above an analyst estimate of $23.4 billion, according to data from Fiscal AI.

Diluted and adjusted earnings per share for the quarter came at $5.25, up from $4.51 reported in the same quarter of last fiscal year, and above an analyst estimate of $4.07.

FY26 Outlook

The company now expects 6.0% to 6.5% revenue growth rate year-over-year in fiscal 2026. It raised its diluted earnings per share estimate to $19.30 to $20.10 after excluding costs, compared to its prior forecast of $17.80 to $19.00.

The company also lowered its capital spending estimate down to $4.1 billion from its older estimate of $4.5 billion.

The planned spin-off of FedEx Freight into a new publicly traded company is on track for June 1, 2026, the company said.

How Did Stocktwits Users React?

On Stocktwits, retail sentiment around FDX stock stayed within the ‘bullish’ territory over the past 24 hours while message volume increased from ‘low’ to ‘normal’ levels.

FDX stock has risen by 44% over the past 12 months.  

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