FedEx Corporation ( FDX ) shares are trading higher Friday. The company reported better-than-expected earnings on Thursday after the market closed.

What To Know: The company reported adjusted earnings per share of $3.83, beating the consensus estimate of $3.62. In addition, FedEx ( FDX ) reported sales of $22.20 billion, beating the consensus estimate of $21.66 billion.

FedEx ( FDX ) reported first-quarter net income of $1.21 billion, or $4.90 per share, compared with $1.08 billion, or $4.23 per share, a year ago.

Operating income rose to $1.87 billion from $1.68 billion in the prior-year period. Consolidated operating margin improved to 8.4% from 7.9%.

The company said the quarter reflected benefits from cost reductions and stronger U.S. package revenue.

FedEx ( FDX ) returned $500 million to shareholders through stock repurchases and declared a quarterly dividend of $1.38 per share.

The company reaffirmed its plan to complete the spin-off of FedEx Freight by June 2026.

FY26 Outlook: The company sees adjusted earnings per share from $17.20 to $19.00 and sales from $91.44 billion to $93.20 billion, versus the consensus estimate of $89.05 billion.

Analyst Changes: Following the earnings report, multiple analysts issued price target adjustments.

B of A Securities analyst Ken Hoexter maintained a Neutral rating on FedEx ( FDX ) and raised the price target from $240 to $244.

Wells Fargo analyst Christian Wetherbee maintained an Equal-Weight rating on FedEx ( FDX ) and raised the price target from $235 to $250.

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FDX Price Action: At the time of writing, FedEx ( FDX ) shares are trading 2.72% higher at $232.76, according to data from Benzinga Pro.

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