Dec 18 (Reuters) – FedEx posted higher second-quarter profit and revenue on Thursday and lifted the low end of its full-year earnings outlook, as peak-season pricing actions and cost-cutting efforts helped offset softer shipment volumes.
The Memphis-based package delivery company reported an adjusted profit of $1.14 billion, or $4.82 per share, for the second quarter ended November 30, up from $990 million, or $4.05 per share, a year earlier.
FedEx has been pursuing a multi-year cost overhaul since 2023, aiming to take billions out of its operating base by idling aircraft, shuttering sites and integrating its formerly separate Ground and Express operations. For the fiscal year ending in May 2026, the company is targeting an additional $1 billion in savings.
The company now projects annual profit of $17.80 to $19.00 per share, raising the low end of its previous $17.20 to $19.00 range.
It also lifted its 2026 revenue outlook, calling for 5% to 6% year-over-year growth, versus its earlier forecast of 4% to 6%.
After three consecutive years of flat or shrinking sales, FedEx caught Wall Street off guard with 3% year-over-year revenue growth in the quarter ended August — and it has kept that momentum going with another quarter of revenue growth.
At the close of trading on Thursday, shares in FedEx were up 2% year-to-date, while shares in rival UPS were down 19%.
(Reporting by Lisa Baertlein in Los Angeles and Abhinav Parmar in Bengaluru; Editing by Alan Barona)
