FDX
The quarter was solid. The applause was... polite.
FedEx came in with a fourth-quarter beat, posting $25 billion in revenue and adjusted EPS of $6.31, both ahead of expectations. That should’ve been a clean victory lap. Instead, the market got the classic “nice quarter, but let’s talk about the future” treatment.
The part Wall Street actually cared about
The not-so-fun detail: operating margin in the Federal Express segment slipped to 7.7% from 8.4% a year ago. That’s the kind of narrowing that makes analysts squint at the spreadsheet and reach for the target-cut button.
Management still sounded upbeat, calling its profitable growth strategy a winner and guiding for calendar 2026 adjusted EPS of $16.90 to $18.10. But the stock didn’t exactly moonwalk higher — shares dipped 0.7% to $314.57, which is basically the market saying, “Thanks, now show me the next act.”
The analyst shrug, in stereo
Two big-name shops followed the earnings print with lower price targets:
- UBS kept a Buy, but cut its target from $445 to $350
- Stifel also kept a Buy, trimming its target from $442 to $326
So yes, the message is mixed: FedEx is still doing better operationally than many feared, but analysts are lowering expectations on how much upside is left. Big picture: beating estimates gets you a nod; protecting margins gets you the standing ovation.