01:03 PM EDT, 03/20/2026 (MT Newswires) -- FedEx's ( FDX ) strong fiscal third quarter highlights momentum for a company that's growing market share in an uncertain global trade environment, BofA Securities said in a note sent to clients on Friday.

Late Thursday, FedEx ( FDX ) reported a surprise increase in fiscal third-quarter earnings as gains in domestic package volume helped lift revenue above Wall Street's estimates. The beat prompted the company to raise its full-year outlook.

The company logged its strongest profitable US market share growth in more than 20 years, FedEx ( FDX ) Chief Customer Officer Brie Carere said on a call with analysts conducted after the quarterly earnings release.

"FedEx ( FDX ) is showing solid momentum in winning share and managing its costs and network transformation in what remains a volatile global trade backdrop," BofA analyst Ken Hoexter wrote.

Earlier this year, US President Donald Trump announced 15% global tariffs after the Supreme Court ruled that he did not have the authority to impose duties under the International Emergency Economic Powers Act.

When asked about the potential impact of the Middle East conflict, Chief Executive Raj Subramaniam said the region constitutes "a relatively small part" of total revenue, but that the company will be monitoring the situation.

"We are assuming that the broader global demand from (the third quarter) continues into (the fourth quarter)," Subramaniam said on the call, according to a FactSet transcript. "And our first two weeks of March essentially are in line with that trend."

Following an Express-led beat, FedEx ( FDX ) increased the midpoint of its fiscal 2026 earnings per share outlook by 7%, Hoexter said. It's now estimating $19.30 to $20.10 for the full year, implying a fourth-quarter adjusted EPS of $5.39 to $6.19, according to the BofA report. That compared to Hoexter's initial estimate of $5.98 for the fourth quarter.

BofA raised its profit and revenue projections for FedEx ( FDX ) from fiscal 2026 to 2028. The brokerage now forecasts EPS of $19.85 on revenue of $93.46 billion this year, compared with $18.90 and $92.64 billion, respectively, previously expected.

BofA reiterated its buy recommendation on FedEx's ( FDX ) shares, while raising the price objective to $440 from $431. The stock was up 1.6% intraday Friday, taking the stock's year-to-date gain to 25%.

FedEx ( FDX ) said its plans to spin off the freight division on June 1 remain on track.

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