FDX

FedEx (NYSE:FDX) is due to report results after the market closes next Wednesday, its first since the fiscal fourth-quarter report this summer. The company reporting will look different from the one investors knew a year ago. Its freight division now trades as a separate stock, and FedEx has moved to a calendar-year schedule. But a cleaner company is not automatically a cheaper one. Analysts expect FedEx's earnings to slip this year, yet the stock trades above its own five-year average multiple. The question is whether the cost savings FedEx is chasing arrive fast enough to justify that price. Federal Express, the segment that moves packages for businesses and online shoppers in the U.S. and abroad, is now the core of the company. The business looks better than it did, but the stock price already reflects part of the improvement. pio3 / Shutterstock.com The latest results show why investors like the new shape. Revenue in the fiscal fourth quarter reached $25.0 billion, up from $22.2 billion a year earlier, and Federal Express earned an adjusted operating margin of 8.9%. FedEx also said it beat its goal of $1 billion in transformation-related cost savings for the year. Before the split, the freight division also paid FedEx a cash dividend of about $4.1 billion. Over the past five years, revenue grew about 2.48% a year. Earnings per share shrank about 1.01% a year over the same stretch, a record built while the freight business was still inside the company. Against that, FedEx now expects about 11% revenue growth in calendar 2026, measured against a 2025 base that leaves freight out. If you're interested in more shipping and transport names, we recently compiled a report on 10 Best Logistics Stocks to Buy Right Now. Guidance explains why the next few quarters matter. FedEx expects adjusted earnings of $16.90 to $18.10 a share for calendar 2026. It also calls the rest of this year a transition period, so the company itself is not promising a clean run. Rising costs are the sticking point for the core business. In its latest release, FedEx said higher prices, cost savings and more export volume lifted the Federal Express margin. But the cost of buying outside transportation, higher wage rates, incentive pay and trade policy took part of those gains back. Those costs don't go away because the savings program is working, so the savings have to keep outrunning them. That limits how fast the improvement can show up more than it undoes it. Someone holding the stock is counting on the cost program to win that race, and the next reports will show how much of the gain survives. Investors who want more large, established names can see our ranking of 10 Most Active Blue Chip Stocks to Buy Right Now. At 16.82 times estimated calendar 2026 earnings, FedEx trades below the sector median of 19.08 but above its own five-year average of 13.96. Those multiples rest on adjusted earnings, which the company's outlook puts a little above its GAAP range. Growth is what makes the price harder to defend. The consensus expects earnings per share to fall 2.33% in 2026, so this year's numbers don't back the multiple. It rests on the savings showing up in earnings after the transition period ends. In plain terms, shareholders are paying more than FedEx's own history asks for, ahead of earnings that are expected to dip before they recover. For investors looking for cheaper ideas, our list of 10 Best Undervalued Stocks to Buy in Octoberis worth a look. So can earnings catch up to the price? They can, but not on this year's estimates. FedEx has built a leaner company, and next week's report will show whether the Federal Express margin is still rising after outside transportation, wages and trade costs take their share. While we acknowledge the risk and potential of FDX as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than FDX and that has 10,000% upside potential, check out our report about this cheapest AI stock. READ NEXT: Nvidia (NVDA): Can Paid Software Make Its Earnings Less Dependent on Hardware Sales? and Verizon (VZ): Can Fixed Wireless Grow Without Squeezing Mobile Network Returns? This article is originally published at Insider Monkey.

United Parcel Service UPS is scheduled to report its third-quarter 2026 results on Oct. 27, before the market opens. The Zacks Consensus Estimate for the to-be-reported quarter's earnings per share and revenues is pegged at $1.63 and $22.23 billion, respectively. The bottom-line projection indicates a year-over-year decline of 6.3%. The consensus mark for the to-be-reported quarter has remained stable over the past 60 days. The Zacks Consensus Estimate for quarterly revenues implies a year-over-year expansion of 3.8%. Image Source: Zacks Investment Research For 2026, the Zacks Consensus Estimate for UPS' revenues is pegged at $91.71 billion, implying a 3.4% year-over-year uptick. The consensus mark for 2026 EPS is pegged at $7.19, indicating a year-over-year improvement of 0.4%. This package delivery company's earnings beat estimates each of the past four quarters, with the average surprise being 12.4%. United Parcel Service, Inc. price-eps-surprise | United Parcel Service, Inc. Quote Our proven model predicts an earnings beat for UPS for the September quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is exactly the case here. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter. UPS has an Earnings ESP of +0.95% and a Zacks Rank #3. You can see the complete list of today's Zacks #1 Rank stocks here. We expect the still-ongoing macro uncertainty due to the Middle East conflict to have dented UPS' performance in the September quarter. The ongoing conflict in the Middle East has resulted in a sharp jump in oil prices. This has been naturally hurting the bottom line of transportation stocks, like UPS. This is because fuel expenses represent a key input cost for a transportation company. UPS' decision to scale back business with Amazon AMZN is expected to have kept third-quarter volumes muted. Management reached an agreement in principle with Amazon to reduce the e-commerce giant's volume by more than 50% by June 2026. CEO Carol Tome noted that Amazon was not the company's most profitable customer. The reduction in volumes is compelling UPS to right-size its network. We expect overall volumes to decline 5.4% year over year in the September quarter. That said, third-quarter results are likely to reflect UPS' efforts toward improving profitability over sheer volume, through its "Better, Not Bigger" strategy. Under the cost-cutting initiatives, UPS has substantially reduced its U.S. operational workforce and closed daily operations at multiple leased and owned buildings. Moreover, UPS has been focusing on increasing automation in sorting and operations and leveraging AI for logistics planning to boost efficiency. The shift in focus toward higher-margin areas such as small and medium-sized businesses or SMBs and healthcare logistics from low-margin volumes (like Amazon) is expected to be reflected in UPS' first-quarter results. Notably, SMBs contributed 34.5% to total U.S. volume in the June quarter, reflecting a 250-basis-point year-over-year improvement. We expect SMBs to have performed strongly in the September quarter as well, boosting results. Shares of UPS have declined marginally year to date ("YTD"), similar to the Zacks Transportation-Air Freight and Cargo industry. Shares of rival FedEx FDX have seen a single-digit (% -wise) rise in the same timeframe. Image Source: Zacks Investment Research On the basis of the forward 12-month Price/Sales (P/S), UPS' shares are trading at a discount compared with the industry average. FedEx is cheaper. UPS and FedEx each currently have a Value Score of B. Image Source: Zacks Investment Research UPS is looking to grow its per-package revenues by gaining more business in segments like healthcare. A few years back, UPS acquired Bomi Group, an industry-leading multinational healthcare logistics provider. Last year, UPS acquired Andlauer Healthcare Group as part of its commitment to offer global specialty capabilities. Because of this strategic shift, UPS did not increase its quarterly dividend this year, keeping it at $6.56 annually. In the event of the company failing to put an end to its struggles through the strategic shift, the high payout ratio may lead to a dividend cut, which would be disastrous for dividend investors. It is worth noting that the company has the brand and the network to continue generating steady cash flows in the long run. This makes UPS a compelling long-term player in the transportation space. However, the near-term headwinds, including the macro uncertainties and volume declines, are hard to ignore. So, all in all, it is worth holding on to UPS stock for now. Betting on the stock ahead of its upcoming results does not seem like a good idea. It is better to wait for management's commentary on volumes and cost-cutting efforts, apart from the updated 2026 guidance, to get more clarity on near-term prospects. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report United Parcel Service, Inc. (UPS) : Free Stock Analysis Report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report FedEx Corporation (FDX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

With a market cap of $69 billion, FedEx Corporation (FDX) is a global provider of transportation, e-commerce, and business services operating through its Federal Express and FedEx Freight segments across the United States and international markets. The company offers a broad portfolio that includes express and freight transportation, logistics and supply chain solutions, digital and printing services, and comprehensive business support offerings. The Memphis, Tennessee-based company is set to report its earnings results after the market closes on Wednesday, Oct. 28. Ahead of this event, analysts expect FDX to report a profit of $3.45 per share, a 9.9% decline from $3.83 per share in the year-ago quarter. - 'When You Say I Should Pay $100 Billion, Then I'm Starting To Do A Little Math': Bill Gates Said He'd Happily Pay 'Over $10 Billion In Taxes' But Some Are Asking Too Much - Dan Ives Calls SpaceX's $40B Nvidia Chip Debt Plan a 'Smart Move' - Dear Johnson & Johnson Stock Fans, Mark Your Calendars for October 13 - Tired of missing midday reversals? The FREE Barchart Brief newsletter keeps you in the know. Sign up now! For fiscal 2026, analysts forecast FedEx to report an EPS of $17.53, down 13.4% from $20.24 in fiscal 2025. However, EPS is anticipated to grow 11.9% year-over-year to $19.61 in fiscal 2027. Shares of FedEx have surged 61.6% over the past 52 weeks, surpassing both the S&P 500 Index's ($SPX) 19.1% increase and the State Street Industrial Select Sector SPDR ETF's (XLI) 13.2% gain over the same period. Despite reporting better-than-expected Q4 2026 adjusted EPS of $6.31 and revenue rising 12.6% to $25 billion on Jun. 23, FedEx shares fell marginally the next day as investors focused on margin pressure in its core Federal Express business. The segment's operating margin declined to 7.7% from 8.4% a year earlier, hurt by higher employee compensation and benefits, outsourced transportation and fuel costs, while tariffs and the end of duty-free de minimis shipments also weighed on delivery volumes. Analysts' consensus view on FDX stock is cautiously optimistic, with a "Moderate Buy" rating overall. Among 28 analysts covering the stock, 18 recommend "Strong Buy," two "Moderate Buys," seven suggest "Hold," and one advises "Strong Sell." This configuration is slightly more bullish than three months ago, with 17 analysts suggesting a "Strong Buy." The average analyst price target for FedEx is $357.39, indicating a potential upside of 23.1% from the current levels. On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com

- Citi said higher fuel prices and rising interest rates could keep investors cautious across the transportation sector, according to The Fly. - The brokerage also revised targets on Union Pacific, J.B. Hunt, FedEx, Werner and TFI International as part of its broader Q3 preview. - The company introduced Protected Delivery and plans to hire 100,000 seasonal workers for the holiday shipping period. United Parcel Service Inc.'s (UPS) stock was in focus on Wednesday after Citi lowered its price target to $122 from $132 while maintaining a 'Buy' rating ahead of its October 27 third-quarter earnings report The Fly reported that Citi adjusted its price targets across the transportation group as part of a third-quarter earnings preview. See what 10M+ investors are talking about. Get the Stocktwits Daily Rip for what retail is watching right now, free to your inbox UPS shares traded marginally lower in Wednesday's pre-market trade, near $93.08, at the time of writing. Citi said higher fuel prices and rising interest rates are likely to keep many investors cautious heading into the transportation sector's third-quarter earnings season, according to The Fly. The brokerage said recent declines in transportation stocks have created a more favorable risk/reward heading into earnings. Citi also adjusted targets on several other transportation stocks, including Union Pacific, J.B. Hunt, FedEx, Werner and TFI International, according to The Fly. UPS said it is entering the 2026 holiday shipping season with expanded shipping options, including enhanced shipment tracking and package-protection solutions. The company said its RFID-powered tracking technology provides more precise, real-time tracking information as packages move through its network. UPS expects to deliver more than 4 billion RFID-enabled packages by the end of 2026. "We have delivered industry-leading service for eight consecutive peak seasons," Matt Guffey, UPS executive vice president and chief U.S. Domestic Officer, said. UPS also highlighted greater pickup visibility, simplified returns through UPS and Happy Returns, flexible delivery options and increased automation at facilities in Denver, St. Paul, Syracuse and Portland. UPS introduced Protected Delivery, a service for eligible shipments that requires recipients to provide a PIN to the driver before a package is released. The company said the service is designed to add an extra layer of security for high-value purchases and other sensitive deliveries during the holiday shipping period. UPS also said it is hiring 100,000 seasonal employees across hundreds of locations nationwide for the holiday season. UPS is scheduled to release its third-quarter 2026 financial results on Oct. 27, with the earnings conference call set for 8:30 a.m. ET. Analysts tracked by Fiscal AI expect UPS to report revenue of approximately $22.14 billion and earnings of $1.63 per share for the quarter. On Stocktwits, retail sentiment toward UPS remained 'Neutral' over the past 24 hours, with a high participation rate. UPS shares are down more than 7% year to date. Also read: CRBU Stock Crashes 35% Premarket — RBC Slashes Target By 90% After Caribou Scraps CAR-T Programs For updates and corrections, email newsroom[at]stocktwits[dot]com. Heera Hari has no position in any of the stocks mentioned in this article. StockTwits' news team content is for informational purposes only and is not intended as investment advice. For more, see our editorial policy. This article was originally published on StockTwits. Related: - Is It Time To Buy Bonds? Longtime Bear Jim Bianco Turns Bullish As US 10-Year Yield Hits Highest Since 2002 - CRWV, NBIS Edge Up Overnight After Selloff: Cathie Wood's ARK Buys CoreWeave, Rosenblatt Starts Nebius At 'Buy' - ASTS Stock Eyes Green Week: Retail Sees 'Major Catalysts' For New Highs As Bezos Targets Blue Origin's December Return

NORTHAMPTON, MA / ACCESS Newswire / September 29, 2026 / Memphis, Tennessee, is our global headquarters city and home to over 30,000 team members. Memphis is rich with culture, talent, and history, and its energetic and resilient spirit brings us great pride. At the same time, Memphis faces real and persistent challenges. Nearly one in four residents lives in poverty, and thousands of young adults are neither in school nor working. These realities affect families, neighborhoods, and the future workforce that will power the city for decades to come. In 2025, our FedEx Cares team worked closely with city experts, nonprofit leaders, our team members, and other Memphians to gain a deeper understanding of the challenges facing the current and future Memphis workforce. After many months of listening and learning, we launched a new support strategy - Mobilizing Memphis' Workforce Potential - to fight poverty, create opportunity, foster belonging, and build a stronger Memphis. Ready, set, launch! Meet some of the Memphians who earned the education, skills, and credentials to launch new careers with FedEx-supported nonprofits: Madison Smith, Army Veteran, gained welding and machining skills at Moore Tech, and set her sights on a career at Toyota Motor Manufacturing. Cyrille Connor built essential workplace habits and industrial electricity and plant maintenance skills at Moore Tech, then landed a job as a Maintenance Technician at Lallemand. Zakaria Culp graduated her EMT program thanks to the Memphis Medical District Collaborative's Hire Local program and is fulfilling a lifelong dream of working as a paramedic firefighter. Alan Manteiga graduated the Memphis Excel Center and plans to continue his college career at Tennessee College of Applied Technology. When basic needs are met, Memphians can focus on careers & family Together, FedEx and Feed the Children are tackling one of Memphis' toughest challenges: making sure children and families have the food, supplies, and support they need to focus on education and careers. Nationwide, one in five children face food insecurity, and some Memphis families often must choose between paying rent and buying groceries, school supplies and hygiene items. To meet that challenge, FedEx and Feed the Children built a year-round approach that combines four programs: - Feed the Children's Food & Essentials hubs inside Memphis Shelby County schools give students and families steady access to nutritious food, personal care items, and learning materials. - Feed the Children's Summer Feed & Read program keeps kids fed and engaged with books during the summer months, when school meals and classroom learning is paused. - Feed the Children's Backpack-N-Go program sends children back to school each year with the supplies they need to start strong. - Feed the Children's Resource Rallies bring food, hygiene products, and essentials directly to families facing tough months. In 2025, these programs reached more than 7,300 Memphians, delivering over 108,000 meals and more than $550,000 worth of food, hygiene products, books, and backpacks. Award winning programs Slingshot Memphis awarded FedEx the Inspire Award for our work combating poverty and creating lasting change in our headquarters city. Click here to learn more about FedEx, Slingshot Memphis & the Inspire Award Our reach in Memphis From skills-based volunteering to hands-on service, from large organizations to grassroots, FedEx and our team members were busy doing good in Memphis last year. "Our team members take great pride in programs and volunteer opportunities that support our neighbors. We are committed to building strong local communities and delivering positive change around the world-starting with the places where we live and work." Jenny Robertson SVP Marketing & Communications, FedEx Learn more about giving and volunteering at FedEx in the 2025 FedEx Cares Report Find more stories and multimedia from FedEx at 3blmedia.com. Contact Info: Spokesperson: FedEx Website: https://www.3blmedia.com/profiles/fedex Email: [email protected] SOURCE: FedEx View the original press release on ACCESS Newswire

This article first appeared on GuruFocus. Release Date: August 31, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Group volume grew 16% year-on-year to 318 million parcels, with revenue up 18% to 4.2 billion Polish Zloty, outpacing volume growth. International markets now account for 54% of group revenue, with Eurozone volumes up 30% and APM volumes up 45% year-on-year. Record APM deployment of 15,600 new machines in the last 12 months, crossing 100,000 out-of-home points and 70,000 APMs globally. Poland maintains strong consumer engagement with 96% of consumers using InPost lockers for receiving parcels and an NPS of 76, well ahead of competitors. UK transformation is progressing, with adjusted EBITDA improving from a loss of 49 million Polish Zloty in Q1 to a positive 29 million in Q2, and B2C volumes up 27%. FedEx partnership is set to launch last-mile services in the UK and Poland in September, opening new growth opportunities. Group adjusted EBITDA growth slowed to 4.4% in Q2, with margin declining to 25% due to segment mix and investment in new services. Adjusted EBIT declined 19.3% and adjusted net profit fell 50% in Q2, impacted by higher depreciation and unfavorable FX. UK adjusted EBITDA margin dropped to 2.8% from 5.1% a year ago, reflecting restructuring costs and lower revenue per parcel. Group free cash flow turned negative at -541 million Polish Zloty in H1 2026, versus a positive 54 million a year ago, due to heavy international investment. Net leverage rose to 2.5 times from 2.1 times a year ago, with net debt increasing to 10.1 billion Polish Zloty. Full-year 2026 outlook revised down: adjusted EBITDA is now expected to decline by a mid-single-digit percentage, and Q3 volume growth is expected to be low single-digit due to EU customs fee changes impacting Chinese volumes. Warning! GuruFocus has detected 9 Warning Signs with INPOY. Is INPOY fairly valued? Test your thesis with our free DCF calculator. Q: The EU's abolishment of the de minimis rule has reportedly caused Chinese volumes to drop 30-40%. Do you recognize this figure in your markets, and how does it impact the mix of your business in Poland, given that Chinese parcels typically generate lower margins and are delivered to door rather than APMs? A: Michael Rouse (CEO International) confirmed that while the company does not concentrate heavily on Chinese business, the impact is consistent with what they have seen in certain markets. He noted that in some markets, this has actually been beneficial from a margin perspective due to a strong recovery in local e-commerce. He also clarified that the UK business has seen no impact at all. Javier van Engelen (CFO) added that the volume outlook revision is purely driven by the Chinese impact, accounting for about 2-3% of the revision, and that the company has initiatives in place to compensate for the volume loss. Q: How much of the H1 international working capital outflow is temporary and reversible in H2 versus structural cash consumption from integrating or scaling Yodel and the international network? A: Javier van Engelen (CFO) stated that the negative free cash flow for the first half is roughly half and half. Half is clearly investment into network innovation to stay ahead of the market, following their strategy for APM and out-of-home usage. The other half is temporary, including a temporary impact from receivables and payables linked to tax payments in Poland and some longer receivables in France, which they expect to be recovered in the second half of the year. Q: Regarding the mix of to-door and APMs in Poland, will the abolishment of the de minimis rule change this mix? A: Javier van Engelen (CFO) explained that the impact depends on where the volume goes. Since B2C penetration in Poland is very strong, the mix will likely shift to other platforms and some B2C. He noted that to-door is an area where they have been filling the gap on volume, and they will continue pushing some volume through deeper to-door penetration. While there will be some impact on pricing, the mix effect with to-door will be seen in Q3. Rafael Droska (CEO) added that InPost is becoming a first-choice vendor for door-to-door services, not only for e-commerce parcels but also for B2B parcels, due to their extraordinary quality, and they are taking over a lot of this business from international players. Q: Can you provide more detail on the revised full-year 2026 outlook, particularly regarding volume growth, adjusted EBITDA, and CapEx? A: Javier van Engelen (CFO) outlined the revised outlook: group volume growth is expected in the mid-teens, with Poland at mid-single-digit growth, Eurozone at high 20s, and UK at low 30s. Group revenue is expected to grow in the mid-teens. Adjusted EBITDA is now expected to decline by a mid-single-digit percentage, with margins around the mid-20s. The company plans to deploy around 19,000 new APMs (3,000 in Poland, 11,000 in the Eurozone, and 5,000 in the UK), with CapEx of around 2.1 billion Polish Zloty. They expect negative free cash flow at year-end and an increased net leverage ratio. Q: What is the expected impact of the EU customs fee changes on Q3 2026 volume growth? A: Javier van Engelen (CFO) stated that for Q3 2026, the group anticipates year-on-year volume growth in the low single-digit percentage range. Poland is expected to have flat volume dynamics, mainly reflecting the impact of changes to EU customs fees on international marketplace volumes. Internationally, they forecast mid-single-digit year-on-year growth, also tempered by the EU customs fee changes in the Eurozone. The UK is comparing to a high base from the prior year. Q: Can you elaborate on the UK business transformation and its path to profitability? A: Michael Rouse (CEO International) noted that UK volumes grew 16% to 82 million parcels, with B2C now representing 61% of the mix, up 27%. APM and returns volumes were up 29% year-over-year. An important milestone was the rebranding of Yodel to Inpost on July 26, bringing UK operations under a single brand. Customer sentiment is improving, with a Trustpilot score of 4.9 out of 5 and 8 million mobile app downloads. Javier van Engelen (CFO) added that UK adjusted EBITDA came in at 29 million Polish Zloty, with margin down from 5.1% to 2.8% due to restructuring efforts, but improved meaningfully versus Q1's loss of 49 million Polish Zloty, showing the transformation is progressing. Q: What is driving the strong performance in the Eurozone segment, and how sustainable is this growth? A: Michael Rouse (CEO International) reported that Eurozone volume grew 30% to over 100 million parcels, outpacing the underlying e-commerce market which grew around 9%. B2C volumes were up 30%, and APM volumes were up 45% year-on-year. The APM out-of-home flow rate reached 47%, up from 40% a year ago. The Mondial Relay network grew 13% to nearly 46,000 locations, with APMs growing over 52%. Mobile app downloads reached 10 million, nearly doubling year-on-year. Javier van Engelen (CFO) added that Eurozone adjusted EBITDA increased by 40% to 203 million Polish Zloty, with margin essentially flat at 16.6%, as scale benefits and disciplined SG&A management were partially offset by the dilutive impact of growing to-door services. Q: Can you provide details on the FedEx commercial agreement and its expected impact? A: Javier van Engelen (CFO) confirmed that, as previously announced, FedEx and InPost have been negotiating an arm's length commercial agreement. In September, InPost plans to launch last-mile services for FedEx in the UK and Poland as part of an initial pilot phase pursuant to this agreement. This represents a significant strategic partnership that could expand InPost's B2B and door-to-door capabilities. Q: How is the company's network expansion progressing, and what is the current scale? A: Rafael Droska (CEO) reported that at the end of Q2, the company operated over 98,000 out For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. The proposed Modiv acquisition is the primary driver for increasing industrial exposure to 50% of straight-line rent while extending the portfolio's weighted average lease term to 6.6 years. Management is executing a 'thoughtful' office reduction strategy, targeting a decrease in office exposure to 21% of straight-line rent through selective monetizations and lease-end dispositions. Performance attribution for the quarter was bolstered by high occupancy (97%) and strong renewal spreads of 5.6%, particularly within the retail and industrial segments. The capital recycling strategy is focused on capturing the spread between disposition cap rates (7.6%) and higher-yielding industrial acquisitions (8.2%) like the recent FedEx transaction. Operational efficiency has improved significantly, evidenced by a sharp decline in recurring capital expenditures from $19.6 million to $3.4 million year-over-year. Management emphasized a credit-centric approach, with 63% of the tenant base now carrying investment-grade or implied investment-grade ratings. CEO Michael Weil's increased personal ownership of 2.9 million shares is presented as a signal of management's alignment with the long-term strategic trajectory. Full-year 2026 AFFO per share guidance was raised to a range of $0.82 to $0.85, reflecting approximately 1.5 quarters of expected contribution from the Modiv acquisition. Gross transaction volume guidance was significantly increased to $700 million to $800 million to account for the mid-August anticipated closing of the Modiv deal. Management reaffirmed a net debt to adjusted EBITDA target range of 6.5x to 6.9x, maintaining a leverage-neutral approach to growth. Future office dispositions will utilize a dual-track strategy: selling to developers for redevelopment at lease expiration and opportunistic market sales to maximize revenue. The company maintains a three-lever capital allocation framework prioritizing leverage reduction, disciplined industrial acquisitions, and opportunistic share repurchases. The Modiv transaction is contingent on a shareholder vote scheduled for August 10, 2026, with a mid-August closing assumption embedded in guidance. A $45 million vacant office property disposition in Q1 2026 successfully eliminated over $1 million in annualized negative NOI drag. The KPN office sale in the Netherlands is structured to close upon lease expiration in December 2026, utilizing a non-refundable deposit to mitigate occupancy risk. Management noted that while share repurchases were limited this quarter due to the pending merger, the program remains a 'valuable tool' for future capital deployment. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management declined to set a specific 'fire-sale' date but confirmed they are actively working with regional brokers to exit assets efficiently. The strategy focuses on maximizing revenue by collecting 100% of remaining rent before handing over assets to developers for redevelopment. There are no restrictions on selling these properties; GNL intends to 'sharpen' the portfolio toward single-tenant industrial assets. Non-core assets from the merger will be treated as opportunistic sale candidates to fund debt reduction or industrial reinvestment. Management is seeing ample deal flow but remains disciplined, bidding only where they want to own rather than chasing broker-led pricing. The focus remains on 'quality of earnings' and long-term tenant stability rather than just initial cap rates. Deleveraging remains the top priority for the company's long-term strategy. Management views the stock buyback program as a tool to be used when the market does not reflect intrinsic value, though they prefer organic stock price appreciation.

Make better investment decisions with Simply Wall St's easy, visual tools that give you a competitive edge. FedEx (FDX) has put fresh financing tools in place by filing an omnibus shelf registration for common stock and debt securities, shortly after reporting fourth quarter fiscal 2026 results that surpassed earnings and revenue estimates. See our latest analysis for FedEx. The FedEx share price closed at US$314.96, with the 1-year total shareholder return of 63.96% standing in contrast to a 90-day share price return that has fallen 18.82%. This suggests strong longer term gains but fading recent momentum as investors digest the spin off of FedEx Freight and the new shelf registration. If you are looking beyond FedEx for other logistics and infrastructure driven stories, this could be a good moment to scan 35 power grid technology and infrastructure stocks After a strong 1 year run and a sharp 90 day pullback, along with fresh financing capacity and the FedEx Freight spin off, is the current FedEx valuation still offering enough upside to justify the risks from here? FedEx is trading at $314.96 versus a most popular narrative fair value of about $351, which frames the current pullback as a valuation gap rather than a full reset. Read the complete narrative. Want to see what sits behind that margin story? The narrative leans on measured revenue growth, firming profitability and a richer earnings multiple. The exact mix may surprise you. Result: Fair Value of $351 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, there are still meaningful risks to the FedEx story, including execution around the Freight separation, as well as pressure from contract changes and international pricing and yield. Find out about the key risks to this FedEx narrative. If that mix of optimism and caution around FedEx resonates, do not wait for the next headline to decide what you think. Review the 4 key rewards. If you only stop at FedEx, you could miss some of the most interesting opportunities on the platform. Put the Simply Wall Street Screener to work. Target potential value opportunities by using the 49 high quality undervalued stocks that filters for quality businesses trading below their assessed worth. Protect your downside by scanning the 81 resilient stocks with low risk scores focused on companies with more resilient risk profiles. Spot early movers by searching the screener containing 20 high quality undiscovered gems built to surface lesser known stocks with strong fundamentals. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include FDX. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]