FedEx (NYSE: FDX) reported fiscal second-quarter results that exceeded Wall Street expectations on both earnings and revenue and raised its full-year guidance, citing stronger package pricing, higher U.S. volumes, and continued cost-cutting initiatives.

The parcel delivery company posted adjusted earnings of $4.82 per share for the quarter, well above analysts' expectations of $4.11. Revenue increased to $23.5 billion, surpassing the consensus estimate of $22.78 billion.

FedEx said consolidated operating performance improved as pricing strengthened across U.S. domestic and International Priority services, U.S. domestic package volumes grew, and structural cost reductions remained on track. These gains were partially offset by higher wage and transportation expenses, the impact of global trade policy changes, and costs associated with grounding the MD11 aircraft fleet.

The core FedEx Express segment delivered stronger operating results, supported by pricing gains, cost efficiencies, and higher U.S. domestic volumes. The unit's operating margin expanded by 100 basis points to 7.7%, exceeding the consensus expectation of 6.4%.

Results at the FedEx Freight segment declined due to lower shipment volumes and rising wage expenses, as well as hiring activity related to preparations for the business's planned separation. The freight unit incurred $152 million in one-time spin-off-related costs during the quarter.

FedEx said the planned spin-off of FedEx Freight remained on schedule for June 1, 2026, with the business expected to trade on the New York Stock Exchange under the ticker symbol FDXF.

For fiscal 2026, the company raised its revenue growth forecast to 5%-6% from a prior range of 4%-6% and increased its adjusted earnings outlook to $14.80-$16.00 per share before mark-to-market pension adjustments, compared with the previous range of $14.20-$16.00.