FedEx (NYSE: FDX) shares fell more than 5% following its Q4 fiscal year 2026 (FY2026) earnings release, raising the question of whether it’s time to get out of this recovery story or lean harder into the trade. The risk is a weaker-than-expected earnings outlook.
The offset is that the consensus estimate may not fully reflect the impact of the FedEx Freight spin-off and the improvements in cash flow it will bring, as well as potential caution in the guidance. FedEx Freight’s spin was completed in early June, setting the stage for accelerated growth and margin strength in upcoming quarters.