FedEx Corporation's stock experienced a significant overnight plunge of 6.45% on Tuesday, following the release of its fiscal fourth-quarter earnings report. The delivery giant reported results that surpassed analyst expectations but provided forward-looking guidance that fell short of market estimates, triggering a sell-off in extended trading.

The company reported adjusted earnings per share of $6.31 for Q4, beating the consensus estimate of $5.96, while revenue of $25.0 billion also exceeded expectations of $24.04 billion. Despite these strong results, investors focused on FedEx's outlook for calendar year 2026, with the company guiding for adjusted EPS in the range of $16.90 to $18.10, which came in well below the $21.61 per share analysts had anticipated.

Additional factors contributing to the negative market reaction included margin pressure in the core FedEx Express segment, where operating margin declined to 7.7% from 8.4% a year earlier due to rising costs for employee compensation, purchased transportation, and fuel. The company also recorded a $23 million non-cash impairment charge related to the permanent retirement of 10 aircraft. Analysts noted that elevated investor expectations following a 36% year-to-date stock gain and confusion surrounding the recent spinoff of the FedEx Freight business on June 1 further contributed to the sell-the-news response.