Delta Air Lines, Inc. provides scheduled air transportation for passengers and cargo in the United States and internationally. The company operates through two segments, Airline and Refinery. Its domestic network centered on core hubs in Atlanta, Minneapolis-St. Paul, Detroit, and Salt Lake City, as well as coastal hub positions in Boston, Los Angeles, New York-LaGuardia, New York-JFK, and Seattle; and international network centered on hubs and market presence in Amsterdam, Bogota, Lima, Mexico City, London-Heathrow, Paris-Charles de Gaulle, Sao Paulo, Seoul-Incheon, and Tokyo. The company sells its tickets through various distribution channels, including delta.com and the Fly Delta app; acts as a reservations specialists; and operates online travel and traditional brick and mortar agencies. It also provides aircraft maintenance and engineering support, repair, and overhaul services; and vacation packages to third-party consumers. The company operates through a fleet of approximately 1,273 aircrafts. Delta Air Lines, Inc. was founded in 1924 and is based in Atlanta, Georgia.

Delta Air Lines, Inc.

SkyWest, Inc. (SKYW) looks cheap from a valuation standpoint. Considering the trailing 12-month price-to-book (P/B)ratio, SkyWest is trading at a discount compared to the industry.
The stock has a trailing 12-month P/B-TTM of 1.50X compared with 3.16X for the industry over the past five years. These factors indicate that the stock’s valuation is attractive. SKYW has a Value Score of A.
SKYW P/B Ratio (Trailing 12 months) Vs. Industry
Image Source: Zacks Investment Research
Now, the question is whether it is worth buying, holding, or selling the SkyWest stock at current prices. Let us delve deeper to find out.
Tailwinds Working in Favor of SKYW Stock
SkyWest's top line benefits from flying contract rate increases. As of Sept. 30, 2025, SkyWest had cumulative deferred revenues of $269.40 million under its flying contracts. Revenues from flying agreements (contributing 96.1% to the top line) grew 16.5% year over year during the first nine months of 2025. The airline carried 12.3% more passengers during the first nine months of 2025 on a year-over-year basis. Departures increased 16.2% on a year-over-year basis.
SkyWest's fleet-modernization efforts to cater to the improvement in travel demand are commendable. In a bid to modernize its fleet, SKYW has fleet-related agreements with airline heavyweights like United Airlines UAL, Delta Air Lines DAL and Alaska Airlines ALK. SKYW had no E175 aircraft deliveries during the third quarter of 2025, consistent with prior expectations.
Concurrent with its third-quarter 2025 results, SkyWest also announced that it has inked a multi-year contract extension with United Airlines for up to 40 CRJ200 aircraft. Further, UAL is scheduled to deliver three E175 planes in the fourth quarter of 2025 and 10 in 2026. Alaska Airlines is expected to deliver one E175 in 2026. DAL is likely to deliver 10 E175 planes in 2027 and six in 2028. Apart from deals with UAL, DAL and ALK, SkyWest is scheduled to purchase 16 E175s from Embraer, with delivery dates in 2027 and 2028. By 2028-end, SkyWest is expected to have nearly 300 E175 aircraft.
SkyWest’s solid balance sheet increases financial flexibility. The company ended third-quarter 2025 with cash and marketable securities of $753.35 million, higher than the current debt level of $519.51 million. This implies that the company has sufficient cash to meet its current debt obligations. Meanwhile, long-term debt level has decreased to $1.86 billion (which translates into a debt-to-capitalization of 49%) at the end of third-quarter 2025 from $2.19 billion (which translates into a debt-to-capitalization of 53.8%) at third-quarter 2024-end.
A strong balance sheet enables the company to reward shareholders with share repurchases. As a reflection of its shareholder-friendly stance, in May 2025, SKYW's existing repurchase plan was increased by $250 million. SkyWest repurchased 244,000 shares for $26.6 million during the third quarter of 2025. As of Sept. 30, 2025, SKYW had $240 million available under its current share repurchase program. Buybacks not only reduce the total outstanding share count, thereby increasing earnings per share, but also signal management's belief in the intrinsic value of the stock.
Long-Term Debt to Capitalization
Image Source: Zacks Investment Research
What Do Earnings Estimates Say for SkyWest?
The positive sentiment surrounding SKYW stock is evident from the fact that the Zacks Consensus Estimate for full-year 2025 and 2026 earnings has been revised upward in the past 90 days. The consensus mark for first-quarter 2026 earnings has also been projected northward in the past 90 days.
Image Source: Zacks Investment Research
The favorable estimate revisions indicate brokers’ confidence in the stock.
Time to Buy SKYW Stock
It is understood that SKYW stock is attractively valued, and an increase in flying contracts is contributing to SKYW’s top line. Fleet modernization techniquesand consistent shareholder-friendly initiatives act as other tailwinds. We believe that the positives surrounding the stock (as highlighted throughout the write-up) outweigh the concerns regarding macroeconomic uncertainty, escalating operating expenses and pilot shortages (bothering regional carriers like SkyWest). We, therefore, suggest investors to add SKYW stock to their portfolios for healthy returns. The company’s Zacks Rank #2 (Buy) further supports our thesis. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Is SkyWest's Cheap Valuation Reason Enough to Buy the Stock?

Key Points
The investment case for the stock is based on understanding how management has fundamentally restructured the airline's business model.
The airline's premium, loyalty, co-branded credits, and differentiated pricing strategies are securing its long-term revenue streams.
The industry is unlikely, and this airline, in particular, is unlikely to be as cyclical as it was in previous decades.
I believe the market is pricing Delta Air Lines (NYSE: DAL) stock based on outdated assumptions that undervalue it. Consequently, there's an opportunity for value investors to buy into a stock that could provide exceptional returns over the next decade, not least because it operates in a fundamentally different way within an industry that has also undergone significant improvements. Here's why.
Delta Air Lines' valuation
To build a solid investment case for a stock, it's essential to understand the nuances of its valuation. It's easy to point to the company's price-to-earnings ratio (P/E) and quickly conclude that Delta is an astounding value stock. After all, Wall Street analysts expect earnings per share of $5.88 in 2025 and then $7.26 in 2026. These figures put Delta on a P/E of 11.8 times earnings in 2025 and 9.6 times earnings in 2026.
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Those valuations are highly attractive, but they don't tell the whole picture. In reality, Delta trades on a low earnings multiple for two reasons:
The company ended the third quarter with adjusted net debt of $15.6 billion, compared to a current market cap of $45.4 billion.
The airline industry has historically been highly cyclical, with significant fluctuations in profitability, which can be particularly hazardous for companies with substantial debt loads.
These are the key reasons why the stock trades at a relatively low valuation on a headline basis; however, for a multitude of reasons, the fears behind it may prove unfounded.
Why Delta Air Lines' stock can outperform in 2026
The key question is the degree of confidence you have in Delta's ability to sustainably generate the earnings and the free cash flow necessary to pay down debt. Wall Street expects Delta to generate FCF of $3.4 billion in 2025, followed by $3.9 billion in 2026 and $4.4 billion in 2027, but it's the degree of confidence you have in these projections that really matters. I think that confidence should be relatively high because Delta and the industry are operating differently from what they have done previously.
Booms and busts mark the airline industry's history due to its sensitivity to the economy and the traditional reaction of airlines in maintaining capacity during slowdowns. Unfortunately, this has led to severe ticket pricing competition, bankruptcies, and slumping profits.
However, for these reasons, Delta's prospects are much better than they have been before:
During the two slowdowns in the summer of 2024 and spring of 2026, the airline industry, including Delta, acted in a disciplined manner by reducing route capacity where necessary and holding back on capacity expansion plans.
Delta's increasing focus on its premium cabin (its highest-margin product, and management believes its premium cabin revenue will surpass main cabin revenue in 2027) and highly successful loyalty programs are differentiating its revenue streams.
The co-branded credit card with American Express also diversifies its revenue, and it continues to grow, bringing in remuneration for Delta, with $8 billion expected in 2025 on the way to a target of $10 billion. For reference, Delta is expected to generate overall revenue of $63.2 billion in 2025.
Rising airport and labor costs are having a disproportionate impact on low-cost carriers than network carriers like Delta, because their increases make their (low-cost carriers) ticket prices relatively much higher.
Another, often missed point is that Delta continues to "unbundle" its offerings (main and premium cabin), meaning that it's removing previously bundled perks that were included in the ticket price (seat choice, baggage allowances, lounge access, etc.) This enables it to offer various pricing options and additional revenue-generating services. It also means Delta can better compete with lower-cost carriers with stripped-down ticket options in the main cabin.
A value stock to buy for 2026
All told, the combination of revenue diversification, more stable revenue streams from loyal premium customers, and co-branded credit cards, alongside an industry behaving in a more disciplined manner than in the past, means investors can have a relatively high degree of confidence in Delta's ability to ride out slowdowns.
The industry will inevitably have peaks and troughs. Still, in Delta's case, the downside is significantly mitigated by its business strategy, and the company's valuation doesn't reflect the new reality in its business or the airline industry at large.
Should you buy stock in Delta Air Lines right now?
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Here's My Top Value Stock to Buy for 2026

Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Invesco S&P 500 GARP ETF (Symbol: SPGP) where we have detected an approximate $536.9 million dollar outflow -- that's a 17.9% decrease week over week (from 26,080,000 to 21,410,000). Among the largest underlying components of SPGP, in trading today Delta Air Lines Inc (Symbol: DAL) is trading flat, Host Hotels & Resorts Inc (Symbol: HST) is down about 0.2%, and Airbnb Inc (Symbol: ABNB) is lower by about 0.7%. For a complete list of holdings, visit the SPGP Holdings page » The chart below shows the one year price performance of SPGP, versus its 200 day moving average:
Looking at the chart above, SPGP's low point in its 52 week range is $84.13 per share, with $116.375 as the 52 week high point — that compares with a last trade of $114.59. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
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Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Also see:
ALB RSI
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XGTI Split History
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

SPGP, DAL, HST, ABNB: ETF Outflow Alert

Key Points
Joby’s sluggish expansion disappointed its early investors.
Its first commercial air taxi flights could take off as early as 2026.
It could experience rapid growth over the next few decades.
Joby Aviation (NYSE: JOBY), a developer of electric vertical take-off and landing (eVTOL) aircraft, hasn't generated any life-changing gains since its public debut four years ago. The company went public by merging with a special purpose acquisition company (SPAC), and it started trading at $10.62 per share. However, it now trades at approximately $13.
Joby, like many other SPAC-backed start-ups, overpromised and underdelivered. In its pre-merger presentation, the company predicted its revenue would jump from zero to $131 million in 2024, $721 million in 2025, and $2.05 billion in 2026. Yet, in 2024, it only generated $136,000 in revenue from a U.S. Air Force contract, incurring a net loss of $608 million.
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That big miss was disappointing, but Joby still has an early mover's advantage in the nascent eVTOL market. If that market expands over the next few decades, it could generate a tenbagger gain (or more) as its eVTOL aircraft replace traditional helicopters.
What sets Joby apart from its competitors?
Joby's first eVTOL aircraft, the S4, carries a single pilot and four passengers. It can travel for up to 150 miles on a single charge and reach a maximum speed of 200 miles per hour. It's also developing a hydrogen-powered version, which can charge faster and travel five times farther. Joby operates a five-aircraft test fleet, including one hydrogen-powered prototype.
The S4's closest competitor, Archer Aviation's (NYSE: ACHR) Midnight, carries the same number of passengers but can only travel 100 miles on a single charge, with a maximum speed of 150 miles per hour. The S4 is faster and more energy-efficient than the Midnight because it uses tilt-rotor propellers, which rotate between lifting and cruising modes. The Midnight is heavier and less energy-efficient because it uses separate propellers for lifting and cruising.
Joby holds a $131 million contract with the U.S. Department of Defense (DOD) to deliver up to nine eVTOL aircraft to the U.S. Air Force. It has delivered the first two aircraft for the contract so far and also delivered one test aircraft in Dubai ahead of its planned air taxi service in 2026. It also completed a growing number of test flights across the U.A.E., South Korea, and Japan.
Joby's business is still in its infancy, but it has already attracted significant backing from major investors and prominent customers, including Toyota (NYSE: TM) and Delta Air Lines (NYSE: DAL). Joby also acquired Uber's (NYSE: UBER) Elevate aerial ride-hailing division in 2020 and Blade's passenger helicopter-hailing service in Aug. 2025.
Those acquisitions will support its future eVTOL air taxi services. Uber plans to integrate Joby's S4 flights into its core app, and Delta is working with Uber and Joby to launch its first S4 air taxi routes in New York and Los Angeles. Those plans sound promising, but they hinge on the Federal Aviation Administration's (FAA) full approval of its commercial flights.
How rapidly could Joby grow over the next few decades?
Joby anticipates that the FAA will fully approve its first commercial flights in the U.S. in 2026. It also aims to launch its first air taxi flights in Dubai during the year.
Assuming it crosses those milestones, analysts expect Joby's revenue to rise to $40 million in 2025, $113 million in 2026, and $207 million in 2027. With a market capitalization of $12.7 billion, Joby's stock might already look expensive at 61 times its 2027 sales.
Yet by 2045, there could be 30,000 eVTOLs carrying three billion passengers globally, according to Eve Air Mobility's (NYSE: EVEX) recent Global Market Outlook. That growth trajectory assumes eVTOLs will replace traditional helicopters for short-range trips.
Joby doesn't publicize the S4's price tag, but most analysts estimate each aircraft costs about $1.3 million. If it captures a third of the eVTOL market by 2045 and sells 10,000 eVTOLs per year, it could generate about $13 billion in annual revenue. Even if those market prices decline as the industry matures, it could still generate $10 billion in yearly revenue at $1 million per eVTOL.
If Joby generates $10 billion in revenue by 2045 and trades at 13 times sales, its market cap would rise tenfold to $130 billion. If it dominates the market and sells even more eVTOLs, its market cap could soar even higher. Although Joby is a speculative stock today, it could be a potential multibagger for patient long-term investors.
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Leo Sun has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Uber Technologies. The Motley Fool recommends Delta Air Lines. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

How Buying Joby Aviation (JOBY) Stock Today Could 10x Your Net Worth

American Airlines Group (NASDAQ:AAL), a major passenger and cargo carrier, closed Tuesday’s session at $15.60, down 4.06%. American Airlines Group IPO'd in 2005 and has fallen 19% since going public. Trading volume reached 67.8 million shares, coming in nearly 9% above its three-month average of 62.4 million shares.
Tuesday’s regular session featured fresh coverage of AAL’s loyalty-program changes, and investors are watching how these strategic moves reshape revenue quality into 2026.
How the markets moved today
The S&P 500 (SNPINDEX:^GSPC) added 0.46% to close at 6,909, while the Nasdaq Composite (NASDAQINDEX:^IXIC) rose 0.57% to finish at 23,562. Industry peers Delta Air Lines (NYSE:DAL) fell 2.18% and United Airlines (NASDAQ:UAL) declined 2.15%.
What this means for investors
The market and investors are still digesting recently announced major changes to its AAdvantage loyalty program. The new rules were effective Dec. 17, and customers aren't happy with the news.
Basic economy tickets no longer earn loyalty miles or points. The program shift aligns with the airline's increasing focus on higher, more profitable fare classes.
The tighter rules could alienate the more price-conscious traveler segment and push them to competing budget airlines, however. American stated the move will help them remain competitive, but investors are implying it also increases risk with owning the stock, driving shares lower today.
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Howard Smith has no position in any of the stocks mentioned. The Motley Fool recommends Delta Air Lines. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Stock Market Today, Dec. 23: American Airlines Falls After Tightening AAdvantage Rules for Basic Economy Fares

For Immediate Release
Chicago, IL – December 22, 2025 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Kraft Heinz Co. KHC, Delta Air Lines DAL, FedEx Corp. FDX, United Natural Foods UNFI and LATAM Airlines Group LTM.
Here are highlights from Friday’s Analyst Blog:
3 Stocks to Buy as Inflation Pressures Fade Heading into 2026
As inflationary pressures continue to moderate across major economies, price stability is gradually returning to markets that were once strained by steep cost pressures. With global inflation cooling and commodity prices retreating from multi-year highs, many companies are entering a more favorable operating environment, marked by lower input costs and improving profit margins heading into 2026. This shift is especially significant for sectors with heavy exposure to raw materials, energy and logistics expenses, areas that have been among the largest drags on corporate margins through the inflationary surge.
As raw materials, energy and freight costs stabilize or decline following peak inflation disruptions, a growing number of companies are positioned to translate cost relief directly into stronger financial performance. Several sectors now stand out as clear beneficiaries of this transition.
Sectors Benefiting From Easing Prices
The consumer staples sector presents a compelling opportunity as key commodity input costs tied to agricultural products, including dairy, sugar, vegetable oils and grains, move lower. As global food prices decrease, food processors, packaged-goods manufacturers and restaurant operators are increasingly positioned to reclaim margins that were compressed in periods of elevated input inflation.
Food processing companies like Kraft Heinz Co. and packaged-goods companies rely heavily on these raw materials as core cost components. Falling ingredient prices reduce the cost of goods sold, directly bolstering the gross margin, while stable shelf pricing preserves revenues. In a still price-sensitive consumer environment, this dynamic allows companies to either preserve pricing power or redeploy margin gains into brand investment, innovation and marketing to support long-term growth.
Capital Goods and manufacturing companies also stand to gain from easing inflation. Manufacturers that are net consumers of energy and commodities, including chemical, plastics and heavy machinery producers, benefit from lower prices for petroleum-based inputs, natural gas, industrial metals and freight. Construction and industrial companies similarly benefit as steel, cement and other building materials become more affordable, lowering project costs and improving returns on new capital investments. With input costs easing, companies can focus on efficiency gains and product innovation while keeping end-market pricing disciplined.
Airlines and logistics companies represent another classic beneficiary of easing price pressures, as fuel remains one of their largest operating expenses. With crude oil prices well below prior peaks, major carriers and delivery companies are positioned to see meaningful operating leverage. Fuel savings flow directly to the bottom line, reducing operating costs per available seat mile for airlines and per parcel mile for logistics providers.
Against a backdrop of stable pricing and improving volume trends, companies like Delta Air Lines and FedEx Corp. are well-positioned for margin expansion as economic activity normalizes. These savings can also be reinvested into fleet upgrades, network optimization and shareholder returns, further strengthening their financial profiles heading into 2026.
Our Picks
Here are three stock picks that clearly illustrate how declining input costs are helping companies regain margins as inflation pressures fade heading into 2026.
United Natural Foods: The company is the leading distributor of natural, organic and specialty food and non-food products in the United States and Canada. The company is regaining margins as inflation pressures ease and input costs normalize. In first-quarter fiscal 2026, the company expanded the gross margin by roughly 20 basis points (bps) year over year, supported by improved procurement conditions, lower shrink and network optimization initiatives.
As food and logistics cost volatility declines, UNFI is converting better pricing discipline and operational efficiency into higher EBITDA, stronger free cash flow and rapid deleveraging. The Zacks Consensus Estimate for UNFI's fiscal 2026 revenues and EPS indicates increases of 1% and 187.3%, respectively, from the year-ago period's reported levels. Earnings estimates for fiscal 2026 have been northbound in the past 30 days. The company delivered an earnings surprise of 52.1%, on average, in the trailing four quarters. UNFI currently has a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
FedEx: The company is the leader in global express delivery services. FedEx is realigning its costs under a companywide initiative called DRIVE, which resulted in annual cost savings of $2.2 billion in fiscal 2025. FDX is a clear margin recovery story as inflation pressures fade and key input costs decline. In second-quarter fiscal 2026, lower fuel expenses, structural cost reductions under Network 2.0 and improved package yields drove operating margin expansion to nearly 7% on an adjusted basis.
With fuel and transportation cost volatility easing, FedEx is converting operating leverage into higher earnings, stronger cash flow and an improved full-year outlook. The Zacks Consensus Estimate for FedEx's fiscal 2026 revenues indicates an increase of 4.6% from the year-ago period's reported level. Earnings estimates for fiscal 2026 have been northbound in the past 30 days. The company delivered an earnings surprise of 2%, on average, in the trailing four quarters. FDX currently has a Zacks Rank #2.
LATAM Airlines Group: The company is Latin America's leading airline. LATAM Airlines is benefiting from its lean cost structure, expanding operations and strategic partnerships. Improvement in air travel demand and normalization of economic activities bode well for LATAM's top line. LTM is regaining margins as easing inflation and lower fuel costs support operating leverage. In third-quarter 2025, a 4.7% year-over-year decline in jet fuel expenses helped drive an adjusted operating margin of 18.1%, even as capacity expanded.
With unit costs broadly stable and fuel volatility moderating, LATAM is translating cost discipline into stronger profitability, cash generation and balance-sheet strength. The Zacks Consensus Estimate for LTM's 2026 revenues and EPS indicates increases of 10.1% and 17.8%, respectively, from the year-ago period's reported levels. Earnings estimates for 2026 have been unchanged in the past 30 days. The company delivered an earnings surprise of 29.8%, on average, in the trailing four quarters. LTM currently has a Zacks Rank #2.
Bottom Line:
These three stocks, spanning consumer staples, logistics and transportation, highlight how declining input costs can restore margins and strengthen financial performance. As inflation eases, companies with high exposure to raw materials, energy and logistics costs are well-positioned to turn cost relief into durable earnings growth.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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The Zacks Analyst Blog Highlights Kraft Heinz, Delta Air Lines, FedEx, United Natural Foods and LATAM Airlines

FedEx Corporation FDX reported solid second-quarter fiscal 2026 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate. Quarterly earnings (excluding 78 cents from non-recurring items) of $4.82 per share beat the Zacks Consensus Estimate of $4.07 as well as improved 19% year over year. Share repurchases boosted fiscal second-quarter earnings by 5 cents per share.
Revenues of $23.4 billion came ahead of the Zacks Consensus Estimate of $22.8 billion and improved 6.8% from the year-ago fiscal quarter’s reported figure.
Apart from the better-than-expected results, FDX has also raised its full-year fiscal 2026 guidance for revenues and earnings. For the full year fiscal 2026, FedEx now expects revenue growth in the range of 5-6% on a year-over-year basis (prior view: up 4-6%). Diluted earnings per share (EPS) are now anticipated between $14.80 and $16.00 before the MTM retirement plans accounting adjustments, compared with the prior guidance of $14.20-$16.00. EPS, after excluding costs related to business optimization initiatives, the planned spin-off of FedEx Freight, and the planned change in the company's fiscal year end, is now expected between $17.80 and $19.00 compared with the prior guided range of $17.20 to $19.00.
Operating income, on a reported basis, increased 31.4% to $1.38 billion from the year-ago fiscal quarter’s reported number. Operating margin rose to 5.9% from 4.8% in the year-ago reported quarter. Operating results improved in the second quarter on the back of strength in U.S. domestic and International Priority package yields, continued structural cost reductions and higher U.S. domestic package volume.
Operating expenses (reported basis) increased by 6% to $22.1 billion.
FedEx Corporation Price, Consensus and EPS Surprise
Raj Subramaniam, FDX president and chief executive officer, stated, “FedEx delivered an outstanding second quarter as we successfully executed our growth strategy and advanced our network transformation, while navigating a highly challenging external environment. I am extremely proud of our team members worldwide for their commitment to make every FedEx experience outstanding this Peak season.”
The planned spin-off of FedEx Freight into a new publicly traded company continues to advance and is anticipated to be completed in a tax-efficient manner for FedEx shareholders on June 1, 2026. Once completed, FedEx Freight will operate as a separately traded public company, listed on the New York Stock Exchange under the ticker symbol FDXF.
Segmental Performance During the Quarter
FedEx Express segment’s revenues grew 8% year over year to $20.4 billion (higher than our model estimate of $19.7 billion). The Federal Express segment benefited from higher U.S. domestic and International Priority package yields, continued cost savings from transformation initiatives, lower business optimization costs and increased U.S. domestic package volume. These factors were partially offset by the financial impact of global trade policy changes, higher wage rates and variable incentive compensation expenses, increased purchased transportation rates, and the grounding of the MD11 aircraft fleet.
FedEx Freight revenues fell 2% from the year-ago fiscal quarter’s reported figure to $2.14 billion (lower than our model estimate figure of $2.24 billion). FedEx Freight segment was weighed down by lower shipments, higher wage rates, and the hiring of additional dedicated LTL sales professionals in preparation for the company’s spin-off, partially offset by increased yield. FedEx Freight incurred one-time spin-off-related costs of $152 million during the reported quarter.
Average daily shipments fell 4% year over year. Capital expenditures for the reported quarter came in at $757 million.
Liquidity
FedEx exited second-quarter fiscal 2026 with cash and cash equivalents of $6.57 billion compared with $6.16 billion at the end of the prior quarter. Long-term debt (less current portion) of $20.2 billion was flat sequentially.
FedEx completed $276 million in share repurchases via open market transactions during the reported quarter. As of Nov. 30, 2025, FDX had $1.3 billion available for repurchases under its 2024 stock repurchase authorization.
Remaining Aspects of 2026 Outlook
Pension contributions are now expected to be up to $275 million compared with the prior view of $400 million.
For full-year fiscal 2026, FedEx continues to anticipate permanent cost reductions of $1 billion in transformation-related savings from structural cost reductions and the advancement of Network 2.0. FDX anticipates capital spending of $4.5 billion, prioritizing investments in network optimization and efficiency improvement, which includes fleet and facility modernization and automation. The effective tax rate (ETR) is still estimated at around 25%.
Currently, FDX carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here
Q3 Performances of Other Transportation Companies
Delta Air Lines DAL reported third-quarter 2025 earnings (excluding 46 cents from non-recurring items) of $1.71 per share, which beat the Zacks Consensus Estimate of $1.52. Earnings increased 14% on a year-over-year basis due to low fuel costs.
Revenues in the September-end quarter were $16.67 billion, beating the Zacks Consensus Estimate of $15.79 billion and increasing 6.4% on a year-over-year basis. Due to improving air-travel demand, adjusted operating revenues (excluding third-party refinery sales) increased 4.1% year over year to $15.2 billion.
J.B. Hunt Transport Services, Inc. (JBHT) reported third-quarter 2025 earnings of $1.76 per share, which surpassed the Zacks Consensus Estimate of $1.47 and improved 18.1% year over year.
Total operating revenues of $3.05 billion surpassed the Zacks Consensus Estimate of $3.02 billion and were down 0.5% year over year. JBHT’s third-quarter revenue performance was hurt by a 1% and 4% decline in gross revenue per load in Intermodal (JBI) and Truckload (JBT), respectively, a decrease in load volume of 8% and 1% in Integrated Capacity Solutions (ICS) and Dedicated Contract Services (DCS), and 8% fewer stops in Final Mile Services (FMS). These items were partially offset by a 3 % improvement in DCS productivity, a 9% increase in revenue per load in ICS and 14% load growth in JBT. Total operating revenues, excluding fuel surcharge revenue, fell less than 1% year over year.
United Airlines Holdings, Inc. (UAL) reported mixed third-quarter 2025 results wherein the company’s earnings beat the Zacks Consensus Estimate, but revenues missed the same.
UAL's third-quarter 2025 adjusted earnings per share (EPS) (excluding 12 cents from non-recurring items) of $2.78 surpassed the Zacks Consensus Estimate of $2.64 but declined 16.5% on a year-over-year basis. The reported figure lies above the guided range of $2.25 and $2.75.
Operating revenues of $15.2 billion fell short of the Zacks Consensus Estimate of $15.3 billion but increased 2.6% year over year. Passenger revenues (which accounted for 90.7% of the top line) increased 1.9% year over year to $13.8 billion. UAL flights transported 48,382 passengers in the third quarter, up 6.2% year over year.
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FedEx Q2 Earnings & Revenues Beat Estimates, Up Y/Y, FY26 EPS View Up

As inflationary pressures continue to moderate across major economies, price stability is gradually returning to markets that were once strained by steep cost pressures. With global inflation cooling and commodity prices retreating from multi-year highs, many companies are entering a more favorable operating environment, marked by lower input costs and improving profit margins heading into 2026. This shift is especially significant for sectors with heavy exposure to raw materials, energy and logistics expenses, areas that have been among the largest drags on corporate margins through the inflationary surge.
As raw materials, energy and freight costs stabilize or decline following peak inflation disruptions, a growing number of companies are positioned to translate cost relief directly into stronger financial performance. Several sectors now stand out as clear beneficiaries of this transition.
Sectors Benefiting From Easing Prices
The consumer staples sector presents a compelling opportunity as key commodity input costs tied to agricultural products, including dairy, sugar, vegetable oils and grains, move lower. As global food prices decrease, food processors, packaged-goods manufacturers and restaurant operators are increasingly positioned to reclaim margins that were compressed in periods of elevated input inflation.
Food processing companies like Kraft Heinz Company KHC and packaged-goods companies rely heavily on these raw materials as core cost components. Falling ingredient prices reduce the cost of goods sold, directly bolstering the gross margin, while stable shelf pricing preserves revenues. In a still price-sensitive consumer environment, this dynamic allows companies to either preserve pricing power or redeploy margin gains into brand investment, innovation and marketing to support long-term growth.
Capital Goods and manufacturing companies also stand to gain from easing inflation. Manufacturers that are net consumers of energy and commodities, including chemical, plastics and heavy machinery producers, benefit from lower prices for petroleum-based inputs, natural gas, industrial metals and freight. Construction and industrial companies similarly benefit as steel, cement and other building materials become more affordable, lowering project costs and improving returns on new capital investments. With input costs easing, companies can focus on efficiency gains and product innovation while keeping end-market pricing disciplined.
Airlines and logistics companies represent another classic beneficiary of easing price pressures, as fuel remains one of their largest operating expenses. With crude oil prices well below prior peaks, major carriers and delivery companies are positioned to see meaningful operating leverage. Fuel savings flow directly to the bottom line, reducing operating costs per available seat mile for airlines and per parcel mile for logistics providers.
Against a backdrop of stable pricing and improving volume trends, companies like Delta Air Lines DAL and FedEx Corp. FDX are well-positioned for margin expansion as economic activity normalizes. These savings can also be reinvested into fleet upgrades, network optimization and shareholder returns, further strengthening their financial profiles heading into 2026.
Our Picks
Here are three stock picks that clearly illustrate how declining input costs are helping companies regain margins as inflation pressures fade heading into 2026.
United Natural Foods UNFI: The company is the leading distributor of natural, organic and specialty food and non-food products in the United States and Canada. The company is regaining margins as inflation pressures ease and input costs normalize. In first-quarter fiscal 2026, the company expanded the gross margin by roughly 20 basis points (bps) year over year, supported by improved procurement conditions, lower shrink and network optimization initiatives.
As food and logistics cost volatility declines, UNFI is converting better pricing discipline and operational efficiency into higher EBITDA, stronger free cash flow and rapid deleveraging. The Zacks Consensus Estimate for UNFI’s fiscal 2026 revenues and EPS indicates increases of 1% and 187.3%, respectively, from the year-ago period’s reported levels. Earnings estimates for fiscal 2026 have been northbound in the past 30 days. The company delivered an earnings surprise of 52.1%, on average, in the trailing four quarters. UNFI currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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FedEx: The company is the leader in global express delivery services. FedEx is realigning its costs under a companywide initiative called DRIVE, which resulted in annual cost savings of $2.2 billion in fiscal 2025. FDX is a clear margin recovery story as inflation pressures fade and key input costs decline. In second-quarter fiscal 2026, lower fuel expenses, structural cost reductions under Network 2.0 and improved package yields drove operating margin expansion to nearly 7% on an adjusted basis.
With fuel and transportation cost volatility easing, FedEx is converting operating leverage into higher earnings, stronger cash flow and an improved full-year outlook. The Zacks Consensus Estimate for FedEx’s fiscal 2026 revenues indicates an increase of 4.6% from the year-ago period’s reported level. Earnings estimates for fiscal 2026 have been northbound in the past 30 days. The company delivered an earnings surprise of 2%, on average, in the trailing four quarters. FDX currently has a Zacks Rank #2.
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LATAM Airlines Group LTM: The company is Latin America’s leading airline. LATAM Airlines is benefiting from its lean cost structure, expanding operations and strategic partnerships. Improvement in air travel demand and normalization of economic activities bode well for LATAM's top line. LTM is regaining margins as easing inflation and lower fuel costs support operating leverage. In third-quarter 2025, a 4.7% year-over-year decline in jet fuel expenses helped drive an adjusted operating margin of 18.1%, even as capacity expanded.
With unit costs broadly stable and fuel volatility moderating, LATAM is translating cost discipline into stronger profitability, cash generation and balance-sheet strength. The Zacks Consensus Estimate for LTM’s 2026 revenues and EPS indicates increases of 10.1% and 17.8%, respectively, from the year-ago period’s reported levels. Earnings estimates for 2026 have been unchanged in the past 30 days. The company delivered an earnings surprise of 29.8%, on average, in the trailing four quarters. LTM currently has a Zacks Rank #2.
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Bottom Line:
These three stocks, spanning consumer staples, logistics and transportation, highlight how declining input costs can restore margins and strengthen financial performance. As inflation eases, companies with high exposure to raw materials, energy and logistics costs are well-positioned to turn cost relief into durable earnings growth.
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3 Stocks to Buy as Inflation Pressures Fade Heading Into 2026

FedEx (FDX) came out with quarterly earnings of $4.82 per share, beating the Zacks Consensus Estimate of $4.07 per share. This compares to earnings of $4.05 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +18.43%. A quarter ago, it was expected that this package delivery company would post earnings of $3.65 per share when it actually produced earnings of $3.83, delivering a surprise of +4.93%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
FedEx, which belongs to the Zacks Transportation - Air Freight and Cargo industry, posted revenues of $23.47 billion for the quarter ended November 2025, surpassing the Zacks Consensus Estimate by 2.64%. This compares to year-ago revenues of $21.97 billion. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
FedEx shares have added about 0.3% since the beginning of the year versus the S&P 500's gain of 14.3%.
What's Next for FedEx?
While FedEx has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for FedEx was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $4.14 on $23.28 billion in revenues for the coming quarter and $18.00 on $91.92 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Transportation - Air Freight and Cargo is currently in the top 41% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the broader Zacks Transportation sector, Delta Air Lines (DAL), has yet to report results for the quarter ended December 2025.
This airline is expected to post quarterly earnings of $1.58 per share in its upcoming report, which represents a year-over-year change of -14.6%. The consensus EPS estimate for the quarter has been revised 9.5% lower over the last 30 days to the current level.
Delta Air Lines' revenues are expected to be $15.52 billion, down 0.3% from the year-ago quarter.
Should You Invest in FedEx Corporation (FDX)?
Before you invest in FedEx Corporation (FDX), want to know the best stocks to buy for the next 30 days? Check out Zacks Investment Research for our free report on the 7 best stocks to buy.
Zacks Investment Research has been committed to providing investors with tools and independent research since 1978. For more than a quarter century, the Zacks Rank stock-rating system has more than doubled the S&P 500 with an average gain of +24.08% per year. (These returns cover a period from January 1, 1988 through May 6, 2024.)
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

FedEx (FDX) Q2 Earnings and Revenues Top Estimates

Key Points
The sudden departure of its CEO raised eyebrows this week.
Frontier is trying to follow the playbook of network carriers.
Shares in Frontier Airlines' parent company, Frontier Group (NASDAQ: ULCC), declined by almost 13% in the week to Thursday afternoon. The slump in the share price came in a week when the company issued an SEC filing announcing the abrupt departure of its CEO, Barry Biffle, to be replaced by the company's President James Dempsey, who will act as interim CEO.
What it means to investors
It's hard to decipher what these move means, not least because, although Biffle will "remain with the Company in an advisory capacity", that period will only last two weeks. Go figure.
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On a more positive note, management reaffirmed the guidance it provided for the fourth quarter in early November.
Biffle's sudden departure comes at a difficult time for Frontier and the low-cost carriers in general. Budget airlines have been hit by rising labor and airport costs, which have a disproportionate impact on their ticket prices when compared to network carriers like Delta Air Lines and United Airlines. Moreover, it remains a highly price-competitive market for the budget carriers. All of which led to Frontier reporting a loss of $77 million in its third quarter.
In response, Frontier is trying to follow the Delta/United's premium/loyalty playbook and introducing new first class seating and trying to grow loyalty revenues, amid keeping a tight control on capacity.
Still, it's never a good sign for an airline when the cost per available seat mile excluding fuel (CASM-Ex) is growing faster than the revenue per available seat mile (RASM), as is the case with Frontier in 2025 , and budget airlines continue to face a challenging environment.
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Lee Samaha has no position in any of the stocks mentioned. The Motley Fool recommends Delta Air Lines. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.