FedEx (NYSE:FDX) Shares Gap Up After Earnings Beat

FedEx Corporation (NYSE:FDX) shares gapped up prior to trading on Friday following a stronger than expected earnings report. The stock had previously closed at $356.11, but opened at $380.82. FedEx shares last traded at $363.7220, with a volume of 2,339,451 shares trading hands.

The shipping service provider reported $5.25 earnings per share for the quarter, beating the consensus estimate of $4.12 by $1.13. FedEx had a return on equity of 16.63% and a net margin of 4.81%.The business had revenue of $24 billion for the quarter, compared to analysts’ expectations of $23.44 billion. During the same period in the previous year, the firm posted $4.51 EPS. The business’s revenue was up 8.3% on a year-over-year basis.

FedEx Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, April 1st. Investors of record on Monday, March 9th will be given a dividend of $1.45 per share. The ex-dividend date is Monday, March 9th. This represents a $5.80 annualized dividend and a dividend yield of 1.6%. FedEx’s payout ratio is currently 31.97%.

FedEx News Summary

Here are the key news stories impacting FedEx this week:

• Positive Sentiment: Q3 beat and guidance raise — FedEx reported $5.25 EPS on $24B revenue, topping consensus and raised FY26 profit outlook; investors cheered resilient demand and a stronger-than-expected holiday peak. FedEx shares surge as investors cheer resilient demand, higher profit forecast
• Positive Sentiment: Analyst upgrades and higher price targets — TD Cowen raised its price target to $426 and upgraded to Buy; other firms (e.g., JPMorgan) also raised targets recently, supporting upside expectations.
• Positive Sentiment: Strategic execution — Management reaffirmed key actions (including the freight spin‑off plan) and emphasized cost controls and yield improvement, which support margin outlook. FedEx Tops Q3 Estimates, Freight Spin-Off Remains On Track
• Neutral Sentiment: Demand and geopolitical risks — CEO said global demand has held through early March despite the Iran war; fuel surcharges are cushioning cost increases but guidance assumes no further major disruptions. This is reassuring but leaves exposure if the conflict worsens. FedEx sees global demand holding amid Iran war, raises profit outlook
• Neutral Sentiment: Network adjustments — FedEx is closing nine New York parcel centers as it optimizes capacity; this may lower costs long term but could cause near‑term disruption and execution risk. FedEx to shutter 9 New York parcel centers
• Negative Sentiment: Analyst downgrade — Zacks moved FDX from “strong‑buy” to “hold,” flagging valuation and near‑term risks despite the beat; some analysts warn the stock’s run-up makes valuation more stretched. Zacks.com
• Negative Sentiment: Safety/regulatory risk — The NTSB is investigating a close call between FedEx and an Alaska Airlines jet at Newark; while not a financial issue now, it introduces operational/regulatory scrutiny. NTSB investigating close call between FedEx, Alaska Airlines jets

Analyst Upgrades and Downgrades

Several brokerages have commented on FDX. Citigroup raised their price objective on FedEx from $327.00 to $401.00 and gave the company a “buy” rating in a research report on Thursday, February 5th. Barclays upped their target price on shares of FedEx from $360.00 to $450.00 and gave the stock an “overweight” rating in a research report on Tuesday, February 10th. Raymond James Financial lifted their price target on shares of FedEx from $305.00 to $410.00 and gave the company an “outperform” rating in a research report on Friday, February 13th. Rothschild & Co Redburn boosted their price objective on shares of FedEx from $317.00 to $371.00 and gave the stock a “neutral” rating in a research note on Tuesday, February 24th. Finally, Weiss Ratings restated a “buy (b-)” rating on shares of FedEx in a report on Monday, December 29th. One equities research analyst has rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating, nine have issued a Hold rating and three have assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average price target of $376.33.

Hedge Funds Weigh In On FedEx

Hedge funds have recently bought and sold shares of the company. Vanguard Group Inc. raised its holdings in FedEx by 13.2% in the third quarter. Vanguard Group Inc. now owns 23,442,049 shares of the shipping service provider’s stock worth $5,527,870,000 after buying an additional 2,741,723 shares during the last quarter. Dodge & Cox grew its holdings in shares of FedEx by 12.0% during the third quarter. Dodge & Cox now owns 16,225,160 shares of the shipping service provider’s stock valued at $3,826,055,000 after buying an additional 1,742,666 shares during the last quarter. State Street Corp increased its position in shares of FedEx by 4.2% during the fourth quarter. State Street Corp now owns 9,521,691 shares of the shipping service provider’s stock valued at $2,763,824,000 after acquiring an additional 382,848 shares in the last quarter. Franklin Resources Inc. increased its position in shares of FedEx by 6.6% during the fourth quarter. Franklin Resources Inc. now owns 5,133,231 shares of the shipping service provider’s stock valued at $1,482,785,000 after acquiring an additional 318,293 shares in the last quarter. Finally, Geode Capital Management LLC raised its holdings in FedEx by 0.9% in the 4th quarter. Geode Capital Management LLC now owns 4,985,778 shares of the shipping service provider’s stock worth $1,443,666,000 after acquiring an additional 45,818 shares during the last quarter. Institutional investors own 84.47% of the company’s stock.

FedEx Price Performance

The firm has a market capitalization of $85.06 billion, a P/E ratio of 19.86, a PEG ratio of 1.66 and a beta of 1.29. The company has a debt-to-equity ratio of 0.72, a quick ratio of 1.23 and a current ratio of 1.27. The firm has a 50-day moving average of $350.29 and a 200-day moving average of $289.94.

About FedEx

FedEx Corporation (NYSE: FDX) is a global logistics and courier company headquartered in Memphis, Tennessee. Founded by Frederick W. Smith in 1971 and beginning operations in the early 1970s, the company pioneered overnight express shipping and has since expanded into a diversified portfolio of transportation, e-commerce and supply-chain services. FedEx operates an integrated air-and-ground network that moves parcels, freight and documents for businesses and consumers worldwide.

FedEx’s core operating segments include express parcel delivery via its FedEx Express division, domestic and residential parcel delivery through FedEx Ground, less-than-truckload (LTL) freight services, and logistics and supply-chain management solutions.