FedEx announced a substantial increase in full-year 2026 diluted EPS guidance to $35.30–$35.90 and expects revenue growth of approximately 12%. It also highlighted the execution of cost savings through DRIVE and Network 2.0 and a shift in its business mix toward higher-value areas.
FedEx substantially raised its full-year revenue and EPS guidance. Diluted EPS for 2026 is expected to be $35.30–$35.90, while revenue is projected to grow by approximately 12%. This is said to have strengthened the execution case for the financial outlook.
Near-term factors include the delivery of cost savings through DRIVE and Network 2.0 and a shift in the business mix toward higher-value areas such as healthcare and AI-related freight. Volume and pricing pressure in core markets have been identified as risk factors.
Market consensus points to annual revenue growth of 1.0% over the next 3 years and an increase in margins from the current 4.7% to approximately 5.7%. Revenue of $97.7 billion, earnings of $5.6 billion and EPS of $24.41 are projected for 2029.
Under this consensus, the target price is based on an assumed 2029 P/E of 19.7x, above the current P/E of 16.2x. The share price valuation assumes both earnings growth and a higher market multiple.