FedEx reported stronger-than-expected earnings for its fiscal first quarter on Thursday, surpassing Wall Street estimates for both revenue and profit. Following the announcement, FedEx shares jumped more than 5% in after-hours trading, signaling renewed investor confidence in the logistics giant’s operational resilience.

Chief Executive Officer Raj Subramaniam emphasized the company’s ability to stay strong despite ongoing uncertainty in global trade. “Our performance this quarter highlights the strength and flexibility we’ve built into our network,” he told analysts. “It’s also a testament to our world-class team, who continue to adapt quickly to serve our customers with excellence in a shifting demand environment.”

For the fiscal quarter ended August 31, FedEx reported adjusted earnings per share of $3.83, beating analyst expectations of $3.59, according to data from LSEG. Revenue reached $22.24 billion, above the projected $21.66 billion. Net income rose to $820 million, or $3.46 per share, up from $790 million, or $3.21 per share, a year earlier. When excluding costs related to the planned FedEx Freight spin-off and other adjustments, the company posted net income of $910 million, or $3.83 per share.

Domestic shipping activity remained a key driver of growth. Average daily package volume in the United States climbed by 6%, reflecting stronger demand across several sectors. The company noted that operating income improved across most business segments, particularly within domestic package delivery, though the FedEx Freight division experienced a decline due to softer revenue and higher labor expenses.

Looking ahead, FedEx projected revenue growth between 4% and 6% for fiscal 2026, well above Wall Street’s consensus estimate of around 1.2%. The company expects full-year earnings per share to range from $17.20 to $19, with a midpoint of $18.10, roughly in line with analysts’ expectations.

Subramaniam described the forecast as realistic, given the company’s exposure to what he called a “dynamic global operating environment.” FedEx cited approximately $150 million in challenges stemming from global trade disruptions during the quarter.

One of the most significant strategic developments at FedEx remains its plan to spin off FedEx Freight into an independent, publicly traded company. The separation is expected to be finalized by June 2026, a move intended to streamline operations and unlock additional shareholder value.

Subramaniam also highlighted the company’s scale, noting that FedEx handles about 17 million packages daily. He credited FedEx’s flexibility for helping it adjust rapidly to shifts in the global economy throughout the first quarter.

However, the company faced new regulatory challenges that affected its bottom line. The recent end of the “de minimis” exception—which had previously allowed shipments under $800 to enter the United States duty-free—created additional headwinds. The global elimination of this rule, following an executive order signed by President Donald Trump, led FedEx to implement a modest increase in shipping fees to offset rising costs.

According to FedEx, the loss of the de minimis exemption accounted for a significant portion of its first-quarter financial pressures. “Given that a large share of our de minimis volume originated from China, we drew on insights from earlier in the year to help shippers in other regions adapt to the new trade landscape,” Subramaniam said.

Despite these challenges, FedEx remains confident in its long-term strategy. The company’s continued investment in automation, network optimization, and digital logistics tools positions it to navigate global uncertainties while delivering steady growth in the years ahead.