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FedEx beats Q4 EPS estimates but margin concerns and cautious 2026 outlook weigh on shares

Company Fundamentals
02 Jul 2026
Seeking Alpha
View Source
Bearish
pluang ai news

FedEx reported a non-GAAP Q4 earnings per share beat, yet its GAAP margins shrank, causing shares to fall amid investor worries. The company’s adjusted EPS growth guidance for 2026 depends on margin expansion that has not yet materialized, leading to skepticism about meeting these targets. Valuation models suggest a fair value range of $345 to $355, indicating limited upside potential and supporting a Hold rating until margin improvement is confirmed. Additionally, the balance sheet's liquidity appears overstated due to one-time accounting items, with true usable cash closer to $8.4 billion, which may limit capital return capabilities.

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