FedEx on Thursday reported strong fiscal third-quarter results that beat Wall Street’s expectations.

The company also raised its guidance for fiscal 2026, projecting revenue growth of 6% to 6.5% compared with analyst estimates of up 5.6%.

Shares of FedEx rose roughly 9% in extended trading.

Here’s how the company performed in the fiscal third quarter, compared with what analysts were expecting, according to LSEG:

• Earnings per share: $5.25 adjusted vs. $4.09 expected
• Revenue: $24 billion vs. $23.43 billion

For the quarter, FedEx reported adjusted operating income of $1.68 billion, beating estimates of $1.39 billion. It reported net income of $1.06 billion, or $4.41 a share, up from $909 million, or $3.76 a share, a year ago. Adjusted for spin-off costs and other one-time items, FedEx reported EPS of $5.25.

The company also raised its fiscal 2026 adjusted EPS expectations, now projecting earnings of $19.30 to $20.10 per share compared with previous guidance of between $17.80 and $19 a share.

“Team FedEx delivered another quarter of strong financial results and excellent service for our customers, powered by disciplined operational execution, the resilience of our global network, and the accelerating impact of our advanced digital solutions,” CEO Raj Subramaniam said in a statement.

The company previously said it expected roughly $1 billion in cost reductions from its “Network 2.0” initiative, which is focused on optimizing efficiency of its package processes by leveraging automation and artificial intelligence. FedEx now expects those savings to exceed $1 billion.

FedEx said its freight business, FedEx Freight, remains on track to be spun off into a separate publicly traded company on June 1.

Subramaniam said on a call with analysts that the company expects “modest” headwinds from disruptions from the Iran war and that the Middle East is a “relatively small part” of total revenue.