FDX: Standing Alone; F4Q26 Earnings Preview

Research evidence excerpt

FDX: Standing Alone; F4Q26 Earnings Preview

6.86 E 20.35 E

Revenue 88,873 53,300 Prior 4.77 E 5.66 E 5.45 E 8.12 E 24.00 E

Source: Company Data, Wells Fargo Securities estimates, and Factset.

EBIT 6,169 3,486 NA = Not Available, NC = No Change, NE = No Estimate

Christian Wetherbee

EPS $18.10 $10.43 Equity Analyst | Wells Fargo Securities, LLC

Source: Company data; Wells Fargo Securities, LLC estimates Christian.Wetherbee@wellsfargo.com | 212-214-8053

Robert H. Salmon, CFA

Results More Important Than Guide - Over the last FY FedEx has established a Equity Analyst | Wells Fargo Securities, LLC

reputation for setting reasonable guidance and outperforming. The company did not walk Robert.H.Salmon@wellsfargo.com | 212-214-5016

expectations up during the quarter, but commentary has been constructive and overall Ryan Deveikis

data points appear supportive for earnings outperformance in F4Q. Assuming our $6.22 Associate Equity Analyst | Wells Fargo Securities, LLC

estimate is right, we think strong results will continue to be weighed heavily against what Ryan.Deveikis@wellsfargo.com | 212-214-8040

could be complex guidance given the corporate actions. Matthew Hortopan

Associate Equity Analyst | Wells Fargo Securities, LLC

Matthew.F.Hortopan@wellsfargo.com | 212-214-5009

Bridge to Earnings Acceleration - In spite of calendar and segment changes, we continue

to see opportunity for earnings growth to accelerate in the coming quarters as the

company laps trade headwinds and continues to unlock value from Network 2.0 and

DRIVE. Our FEC EPS estimates move to $18.10 for C26, $22.25 in C27 and ~$25 in C28

(pulling forward LT guidance by 1 year). Building blocks for legacy F27 are translated to

C26 in Exhibits 2 and 3 in this note.