FedEx (FDX) Stock Tumbles After Earnings: Weak Guidance Sparks Investor Panic

Another 'growth story' hits the wall.

FedEx just delivered a brutal reality check to Wall Street—and shareholders are paying the price. The logistics giant's shares cratered after hours as its earnings report revealed softer-than-expected guidance, proving even legacy players aren't immune to economic headwinds.

Here's the damage:

- FDX down 8% post-market
- Q4 revenue misses whisper numbers
- FY2026 outlook slashed amid 'challenging macro environment' (corporate speak for 'we're screwed')

The real kicker? This comes just months after FedEx's much-hyped 'cost transformation plan.' Turns out you can't algorithm your way out of a global demand slump—who knew?

Meanwhile in Memphis: Execs are suddenly very interested in 'long-term value creation' (translation: pray the Fed cuts rates).

One bright spot? Short sellers are popping champagne. The rest of us? Stuck watching another blue-chip stock turn into a 'show me' story.

Bonus finance jab: Nothing says 'efficient markets' like a 10% swing because one CFO coughed during an earnings call.

Confident Investing Starts Here:

• Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions
• Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter

In addition, sales increased by 0.5% year-over-year, with revenue hitting $22.2 billion. This beat analysts’ expectations of $21.8 billion but did not seem to be enough for investors.

2026 Outlook

Looking forward, management now expects revenue growth in Q1 2026 to be 0% to 2% year-over-year, compared to expectations of -1.1%. Furthermore, adjusted earnings per share are anticipated to land between $3.40 and $4.00. For reference, analysts were expecting an adjusted EPS of $4.11.

As you can see, EPS guidance was worse than expected, which was enough to disappoint investors and send shares lower in after-hours.

Is FedEx a Buy, Sell, or Hold?

Turning to Wall Street, analysts have a Moderate Buy consensus rating on FDX stock based on 12 Buys, three Holds, and one Sell assigned in the past three months, as indicated by the graphic below. Furthermore, the average FDX price target of $268.07 per share implies 16.9% upside potential. However, it’s worth noting that estimates will likely change following today’s earnings report.