FedEx Corp. offered investors a sign that Chief Executive Officer Raj Subramaniam’s turnaround plan may be worth the wait.

FedEx called for a fiscal 2026 revenue growth rate of 5% to 6% year over year, compared with a prior forecast of 4% to 6% revenue growth. It raised the lower end of its per-share earnings forecast to between $14.80 and $16 for the year, compared with its previous call of $14.20 to $16.

Parcel delivery company FedEx said it was planning for $175 million in unexpected peak-season costs to find trucks and planes to move goods that would have flown on its fleet of MD-11 cargo planes that were grounded after a deadly UPS crash last month.

FedEx beats Q2 earnings estimates, updates outlook, and advances its Freight spin-off plans. Get the latest on FDX stock performance and future projections.

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US cargo carrier Fedex Express has been forced into making massive operational changes since the crash of UPS Airlines Flight 2976 in early November, which precipitated the indefinite grounding of the global McDonnell Douglas MD-11 fleet.

FedEx has adjusted its air network and flying schedule to overcome the loss of grounded MD-11 freighter aircraft, but the changes have overwhelmed staff dedicated to supporting pilots laying over in destination cities.

Next year, USPS plans to ask for bids from other deliver services so those companies can pay and use the tried and true "Last Mile Infrastructure".

The results prompted the shipping company to raise the bottom end of its outlook for the full year, even as it navigates impacts from changes in global trade.

During FedEx Freight’s fiscal second quarter ended Nov. 30, revenue fell 1.7% year over year to $2.14 billion. A 2.8% decline in tonnage was partially offset by a 1.1% increase in revenue per hundredweight, or yield.