March 19 (Reuters) - FedEx, known for its air-dependent overnight deliveries, on Thursday raised its full-year profit forecast as it reported a rise in third-quarter profit and revenue, helped by a surge in deliveries during the all-important holiday quarter.
The company now expects adjusted profit for its fiscal year ending May 31 to be between $19.30 and $20.10 per share.
The Memphis-based company in December forecast annual profit of $17.80 to $19.00 per share, raising the low end of its previous
$17.20 to $19.00 range.
FedEx said operating results in its Express unit improved in the third quarter, helped by stronger U.S. and international package pricing, higher domestic volumes and ongoing cost cuts.
Gains were partly offset by higher wages and incentive pay, rising transportation costs, the impact of global trade policy changes, and the grounding of MD-11 aircraft, it said.
Adjusted earnings for its crucial winter holiday quarter rose to $5.25 per share from $4.51 a year earlier, even as it absorbed millions in unexpected costs related to truck and plane replacements for its MD-11 fleet, which was grounded after a deadly UPS crash in November 2025.
FedEx had 28 Boeing MD-11 cargo jets in operation when the Federal Aviation Administration grounded the planes after the crash that killed 14 people, including three pilots onboard.
Executives previously said they expect the company's MD-11 fleet to return to service by the end of May.
The company also said that it now expects its full-year revenue to be up in the range of 6.0% to 6.5% year-over-year, compared to its previous forecast of a growth between 5% and 6%.
FedEx is in a multi-year restructuring that includes slashing billions of dollars in costs, combining its distinct Ground and Express delivery options, automating some operations and spinning off its Freight trucking business on June 1.
(Reporting by Lisa Baertlein in Los Angeles and Abhinav Parmar in Bengaluru; Editing by Alan Barona)
