FedEx Corporation

What they do

FedEx provides customers and businesses worldwide with a portfolio of transportation, e-commerce, and business services through an integrated global network. Following the June 1, 2026 spin-off of FedEx Freight, FedEx Freight is presented as discontinued operations and is no longer a reportable segment. FedEx's two reportable segments are now Express U.S. Domestic and Express International; FedEx Dataworks, FedEx Office, and FedEx Supply Chain remain in Corporate, other, and eliminations.

Revenue drivers

• Express U.S. Domestic — New reportable segment created from the former Federal Express segment; generated by U.S. domestic express package and freight transportation.
• Express International — New reportable segment covering international express transportation; now also includes FedEx Logistics, which was moved from Corporate, other, and eliminations.
• Corporate, other, and eliminations — Includes FedEx Dataworks, FedEx Office and Print Services, and FedEx Supply Chain, which remains in this category for segment reporting.
• FedEx Freight (discontinued) — Less-than-truckload freight business, including FedEx Custom Critical and LTL Select, spun off June 1, 2026 and excluded from continuing operations.

Recent performance

Fiscal 2026 revenue was $94.72 billion, up from $87.93 billion in fiscal 2025. Fiscal 2026 net income was $4,433 million and diluted EPS was $18.55, compared with $4,092 million and $16.81 in fiscal 2025. Operating cash flow was $8.93 billion in fiscal 2026, up from $7.04 billion in fiscal 2025. Recent quarterly revenue rose sequentially from $22.24 billion for the quarter ended August 31, 2025 to $25.01 billion for the quarter ended May 31, 2026.

Strategy

FedEx completed the spin-off of FedEx Freight on June 1, 2026, retaining 19.9% of FedEx Freight common stock. Effective June 1, 2026, FedEx changed its fiscal year end from May 31 to December 31 and will report a seven-month Transition Period ending December 31, 2026. FedEx realigned its internal reporting into Express U.S. Domestic and Express International segments and moved FedEx Logistics into Express International. On July 1, 2026, FedEx announced it would sell its FedEx Supply Chain business to CMA CGM Group for $1.4 billion, expected to close in the second half of calendar year 2026. FedEx announced a multi-year financial framework in February 2026 with financial performance targets for 2029.

Risks

• Macroeconomic and trade sensitivity — FedEx's business levels are directly tied to global trade growth, and the transportation industry is highly cyclical and especially susceptible to economic activity trends.
• High fixed-cost air network — The scale of FedEx's operations and its relatively high fixed-cost structure, particularly in its air network, make it difficult to quickly adjust to shifting volume levels.
• InPost investment uncertainty — FedEx holds 37% of a consortium pursuing an all-cash offer for InPost S.A. subject to regulatory approvals, and FedEx would not control the entity.
• 2029 target execution risk — FedEx's ability to achieve its calendar 2029 financial performance targets depends on successfully implementing its strategies; failure could adversely affect results and the stock price.

Outlook

FedEx changed its fiscal year end to December 31 effective June 1, 2026 and will report a seven-month Transition Period from June 1, 2026 through December 31, 2026 in a Transition Report on Form 10-K. Following the Transition Period, FedEx will report on a calendar-year basis beginning with the fiscal year ending December 31, 2027. FedEx announced a multi-year financial framework in February 2026 with targets for 2029.