FedEx shares dip despite strong Q4 earnings beat and positive outlook from Bank of America

FedEx reported a 4% rise in adjusted earnings per share to $6.31 for fiscal Q4 2026, beating estimates due to strong Freight and Express segment performance. Bank of America highlighted the company's solid pricing, mix, and cost management, but noted investor confusion caused by FedEx's transition to calendar-year reporting. Despite the near-term reporting complexity, Bank of America maintained a 'Buy' rating and raised its price target to $378, expecting continued margin improvements and mid-teens operating income growth through 2029. FedEx shares fell 1.5% amid this mixed market reaction.