05:05 PM EDT, 09/18/2025 (MT Newswires) -- FedEx's ( FDX ) fiscal first-quarter results rose more than expected, buoyed by domestic package revenue gains and cost reductions.

Adjusted per-share earnings increased to $3.83 in the three months ended Aug. 31 from $3.60 a year earlier. The FactSet-polled consensus was for $3.61. Revenue climbed to $22.2 billion from $21.6 billion, compared with Wall Street's $21.65 billion view.

Shares were up 7.9% in after-hours trading.

Consolidated operating results improved due to strength in US domestic package revenue and continued cost cuts, FedEx ( FDX ) said.

Operating results at Federal Express rose. The freight segment's results decreased amid lower revenue, higher wage rates and additional sales staff for less-than-truckload operations.

FedEx ( FDX ) expects fiscal 2026 adjusted EPS at $17.20 to $19, excluding business optimization costs, retirement plan adjustments and the planned separation of its freight division. Revenue is pegged at 4% to 6% growth year-over-year. Analysts polled by FactSet project normalized EPS of $18.36.

In December, FedEx ( FDX ) announced plans to spin off its freight operations into a separate publicly listed company. That plan is expected to be executed by June 2026, FedEx ( FDX ) said late Thursday.

Parcel and LTL shipping rates will increase by an average of 5.9%, effective Jan. 5, 2026.