On Tuesday, FedEx Corporation (NYSE:FDX) reported adjusted earnings per share of $6.31, beating the consensus estimate of $5.96.

The company reported revenue of $25.00 billion, beating the consensus estimate of $24.04 billion.

FedEx expects revenue growth of 11% year-over-year for calendar year 2026 and guided for adjusted earnings in the range of $16.90 to $18.10 per share.

FedEx Calendar-Year Transition Clouds Near-Term Comparisons

In January 2025, the FedEx board approved a change in the company’s fiscal year-end from May 31 to December 31. The fiscal year change became effective for the period beginning June 1.

Bank of America (BofA) said FedEx’s after-hours decline appears tied more to confusion around its transition to calendar-year reporting than to the underlying quarter, noting that the company delivered a strong fiscal fourth-quarter earnings beat driven by pricing strength, favorable shipment mix and disciplined cost execution.

The brokerage noted that FedEx shares fell about 6% after the company outlined a second-half 2026 calendar-year outlook calling for roughly 20% year-over-year earnings growth.

However, its calendar 2026 adjusted EPS guidance of $16.90 to $18.10 appeared lower than investors’ fiscal 2027 expectations, creating initial uncertainty as FedEx shifts from a May fiscal year-end to a December calendar year-end.

BofA said the newly introduced transition-period guidance has added near-term noise to earnings comparisons and made year-over-year analysis more complicated.

Despite the market reaction, the firm characterized the quarter as fundamentally strong, supported by continued momentum in pricing, mix and operational execution.

BofA Sees Healthy Underlying Fundamentals

FedEx expects EPS of $11.30 for June-December 2026, up 20% year over year, which supports its calendar 2026 EPS outlook of $16.90-$18.10, implying roughly 17% growth at the midpoint.

BofA said the outlook reflects solid underlying business trends and normal seasonality, although early 2026 results will be pressured by incentive compensation expenses and stranded costs related to FedEx Freight.

Analyst Raises Forecast On Long-Term Outlook

Analyst Ken Hoexter reiterated a Buy rating and raised the price forecast to $378 from $376, based on a 17.5x multiple of his revised calendar 2027 EPS estimate. Hoexter lifted his 2027 EPS forecast by 6% to $21.60 from $20.28.

BofA said its valuation multiple remains near the upper end of its historical range, supported by expectations for mid-teens operating income CAGR through 2029, continued progress in network integration, profitable market share gains, and disciplined pricing.

Separately, UBS maintained its Buy rating while lowering its price forecast to $350 from $445. Stifel also maintained a Buy rating and reduced its price forecast to $326 from $442.

FedEx Price Action

FDX Stock Price Activity: FedEx shares were down 1.76% at $311.65 at the time of publication on Wednesday, according to Benzinga Pro data.

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