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Posted by Defense World Staff on Jul 25th, 2026

Bank of Nova Scotia boosted its position in FedEx Corporation (NYSE:FDX – Free Report) by 220.7% during the 1st quarter, according to its most recent Form 13F filing with the SEC. The fund owned 112,077 shares of the shipping service provider’s stock after purchasing an additional 77,131 shares during the period. Bank of Nova Scotia’s holdings in FedEx were worth $39,920,000 as of its most recent SEC filing.

A number of other hedge funds have also recently modified their holdings of FDX. Hollencrest Capital Management bought a new position in shares of FedEx during the 1st quarter valued at approximately $25,000. Bayban purchased a new position in FedEx in the 1st quarter worth approximately $26,000. EFG International AG purchased a new position in FedEx in the 4th quarter worth approximately $27,000. Wealth Watch Advisors INC bought a new position in FedEx in the 3rd quarter worth approximately $28,000. Finally, Tucker Asset Management LLC purchased a new stake in FedEx during the 4th quarter valued at approximately $29,000. Institutional investors own 84.47% of the company’s stock.

Insider Activity In related news, Director Paul S. Walsh sold 5,042 shares of FedEx stock in a transaction dated Tuesday, June 30th. The stock was sold at an average price of $324.56, for a total transaction of $1,636,431.52. Following the completion of the sale, the director owned 16,359 shares of the company’s stock, valued at $5,309,477.04. The trade was a 23.56% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. 0.53% of the stock is currently owned by insiders.

Analyst Ratings Changes FDX has been the topic of several research analyst reports. Rothschild & Co Redburn lowered their target price on shares of FedEx from $375.00 to $344.00 and set a “neutral” rating on the stock in a report on Tuesday, June 2nd. Wolfe Research cut their target price on FedEx from $427.00 to $423.00 and set an “outperform” rating on the stock in a research report on Tuesday, April 7th. Sanford C. Bernstein set a $397.00 price objective on shares of FedEx in a research report on Wednesday, June 24th. Citigroup began coverage on FedEx in a research report on Wednesday, July 15th. They set an “outperform” rating for the company. Finally, Wall Street Zen raised FedEx from a “buy” rating to a “strong-buy” rating in a research note on Saturday, June 6th. One analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating, nine have given a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat, FedEx has an average rating of “Moderate Buy” and an average price target of $350.54.

Check Out Our Latest Report on FedEx

FedEx Price Performance NYSE FDX opened at $314.77 on Friday. The firm’s fifty day simple moving average is $335.98 and its two-hundred day simple moving average is $350.05. FedEx Corporation has a 12-month low of $172.88 and a 12-month high of $345.36. The firm has a market capitalization of $74.47 billion, a P/E ratio of 17.01, a P/E/G ratio of 1.62 and a beta of 1.29. The company has a current ratio of 1.48, a quick ratio of 1.44 and a debt-to-equity ratio of 0.74.

FedEx (NYSE:FDX – Get Free Report) last announced its quarterly earnings data on Tuesday, July 21st. The shipping service provider reported $5.88 earnings per share for the quarter. The firm had revenue of $23.26 billion for the quarter. FedEx had a net margin of 4.68% and a return on equity of 16.49%. Analysts forecast that FedEx Corporation will post 17.6 EPS for the current fiscal year.

FedEx Cuts Dividend The company also recently disclosed a quarterly dividend, which was paid on Tuesday, July 7th. Stockholders of record on Monday, June 22nd were paid a $1.22 dividend. This represents a $4.88 annualized dividend and a dividend yield of 1.6%. The ex-dividend date was Monday, June 22nd. FedEx’s dividend payout ratio (DPR) is presently 26.36%.

About FedEx (Free Report)

FedEx Corporation (NYSE: FDX) is a global logistics and courier company headquartered in Memphis, Tennessee. Founded by Frederick W. Smith in 1971 and beginning operations in the early 1970s, the company pioneered overnight express shipping and has since expanded into a diversified portfolio of transportation, e-commerce and supply-chain services. FedEx operates an integrated air-and-ground network that moves parcels, freight and documents for businesses and consumers worldwide.

FedEx’s core operating segments include express parcel delivery via its FedEx Express division, domestic and residential parcel delivery through FedEx Ground, less-than-truckload (LTL) freight services, and logistics and supply-chain management solutions.

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Key Takeaways FedEx Freight debuted as a standalone S&P 500 LTL carrier with a large North American network. Management targets 4%-6% revenue growth, 10%-12% adjusted operating income growth and $1B free cash flow. Standalone systems, freight cyclicality and elevated debt could pressure costs and demand. FedEx Freight (FDXF - Free Report) has entered the public market as a standalone freight company. Its S&P 500 debut gives investors a clearer way to evaluate a business that was previously housed inside FedEx.

The case now rests on a focused less-than-truckload, or LTL, network, post-spin targets and the company’s ability to execute without the operating support of its former parent.

FDXF Starts Life as a Pure LTL CarrierFedEx Freight is now a focused North American LTL carrier serving manufacturers, retailers, distributors and business customers. The model moves smaller freight shipments from many customers through a shared terminal and linehaul network rather than dedicating an entire truck to one shipper.

Scale is central to that model. FDXF handles roughly 90,000 daily shipments across more than 365 locations, supported by 30,000 vehicles and 40,000 team members. That footprint matters because LTL customers value coverage, reliable pickup and delivery, shipment visibility and claims performance.

The company now sits in a peer set that includes Old Dominion Freight Line (ODFL - Free Report) , a major national LTL carrier, and XPO (XPO - Free Report) , which also competes in North American LTL. Those peers give investors a useful comparison group for pricing discipline, service quality and margin performance.

FedEx Freight Gains Strategic FreedomThe spin-off changes the management agenda. FedEx Freight no longer competes internally with parcel and express operations for capital, systems investment or executive attention. The company can direct resources toward freight customers and freight-specific network decisions.

That independence could sharpen execution. A dedicated sales force can focus on industrial, retail and distribution accounts, while technology spending can be targeted toward shipment visibility, pricing, dock productivity and route planning.

Strategic freedom does not guarantee faster growth, but it creates a cleaner investment story. Investors can now judge FDXF on freight fundamentals rather than on its contribution to a broader transportation portfolio.

FDXF Growth Plan Centers on MarginsManagement’s medium-term targets frame the stock’s growth case. FedEx Freight is aiming for revenue growth of 4% to 6% and adjusted operating income growth of 10% to 12% over the medium term.

The plan also calls for free cash flow above $1 billion, free cash flow conversion above 90% and a capital expenditure-to-revenue ratio near 5%. Those targets suggest that the company is not simply chasing shipment volume.

That distinction is important in LTL. Volume growth can help network density, but poorly priced freight can dilute margins. For FDXF, the cleaner upside would come from better yields, improved network balance, disciplined capacity spending and productivity gains.

FedEx Freight Faces a Tough Reality CheckExecution risk is the first test. FedEx Freight must build and operate standalone corporate systems after the spin-off, including public-company functions. Any disruption could absorb management time and raise costs early in independence.

The business is also exposed to the freight cycle. Industrial production, manufacturing activity, retail replenishment and broader business spending influence LTL volumes. Softer demand could pressure shipment counts, pricing and operating leverage.

Leverage adds another constraint. Elevated debt created before separation may reduce flexibility if the freight market weakens or if standalone costs run higher than planned. Debt service needs can compete with technology spending and network investment.

FDXF Signals a Mixed Setup for InvestorsThe bottom line is that FedEx Freight offers a cleaner way to own a large North American LTL network, but the stock still needs operating proof as a standalone company. The spin-off improves strategic focus, yet investors have to weigh that against systems execution, cyclicality and balance-sheet pressure.

FDXF currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. We believe the stock remains worth holding for investors with a long-term horizon.

The consensus price target for FDXF stock is $175, implying an upside of more than 17% from current levels.

Image Source: Zacks Investment Research

The stock also has a Value Score of C, Growth Score of C, Momentum Score of F and VGM Score of D. That mix points to a neutral near-term setup rather than a clear buying signal.

The Style Scores reinforce that stance. C grades in value and growth suggest middle-of-the-road characteristics, while the F in momentum indicates weak timing on that measure. With a VGM Score of F, FDXF looks better suited for monitoring than for an aggressive entry until investors see cleaner execution and evidence that margin targets are becoming durable results.

Posted by Defense World Staff on Jul 22nd, 2026

Andra AP fonden increased its holdings in shares of FedEx Corporation (NYSE:FDX – Free Report) by 7.9% in the 1st quarter, according to its most recent filing with the SEC. The fund owned 44,578 shares of the shipping service provider’s stock after purchasing an additional 3,278 shares during the period. Andra AP fonden’s holdings in FedEx were worth $15,878,000 at the end of the most recent reporting period.

Other large investors also recently modified their holdings of the company. Brighton Jones LLC grew its stake in shares of FedEx by 12.8% in the fourth quarter. Brighton Jones LLC now owns 1,825 shares of the shipping service provider’s stock worth $514,000 after acquiring an additional 207 shares during the last quarter. Empowered Funds LLC raised its position in shares of FedEx by 78.9% during the first quarter. Empowered Funds LLC now owns 10,311 shares of the shipping service provider’s stock valued at $2,514,000 after buying an additional 4,548 shares during the last quarter. Sivia Capital Partners LLC bought a new stake in shares of FedEx in the second quarter valued at about $586,000. Quantbot Technologies LP bought a new stake in shares of FedEx in the second quarter valued at about $186,000. Finally, Jump Financial LLC acquired a new stake in FedEx during the second quarter worth about $456,000. 84.47% of the stock is currently owned by institutional investors and hedge funds.

Insider Transactions at FedEx In related news, Director Paul S. Walsh sold 5,042 shares of the company’s stock in a transaction dated Tuesday, June 30th. The shares were sold at an average price of $324.56, for a total transaction of $1,636,431.52. Following the transaction, the director owned 16,359 shares in the company, valued at $5,309,477.04. This represents a 23.56% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. 0.53% of the stock is currently owned by company insiders.

Analyst Ratings Changes Several equities analysts have commented on the company. Jefferies Financial Group began coverage on FedEx in a report on Tuesday, June 23rd. They issued a “buy” rating and a $200.00 price target for the company. Citigroup started coverage on FedEx in a report on Wednesday, July 15th. They set an “outperform” rating on the stock. Raymond James Financial cut their target price on FedEx from $415.00 to $330.00 and set an “outperform” rating for the company in a research note on Wednesday, June 24th. TD Cowen reduced their target price on FedEx from $426.00 to $354.00 in a research report on Wednesday, June 24th. Finally, Weiss Ratings downgraded shares of FedEx from a “buy (b)” rating to a “buy (b-)” rating in a research note on Wednesday, June 3rd. One equities research analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating, nine have issued a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average target price of $350.54.

View Our Latest Analysis on FedEx

FedEx Stock Up 3.0% NYSE FDX opened at $315.27 on Wednesday. The firm has a market cap of $75.23 billion, a PE ratio of 17.03, a price-to-earnings-growth ratio of 1.58 and a beta of 1.29. FedEx Corporation has a one year low of $172.88 and a one year high of $345.36. The stock’s 50 day simple moving average is $339.44 and its 200 day simple moving average is $349.91. The company has a debt-to-equity ratio of 0.74, a current ratio of 1.48 and a quick ratio of 1.44.

FedEx (NYSE:FDX – Get Free Report) last issued its quarterly earnings data on Tuesday, July 21st. The shipping service provider reported $5.88 earnings per share (EPS) for the quarter. The firm had revenue of $22.19 billion during the quarter. FedEx had a return on equity of 16.49% and a net margin of 4.68%. As a group, sell-side analysts forecast that FedEx Corporation will post 17.6 earnings per share for the current fiscal year.

FedEx Cuts Dividend The firm also recently declared a quarterly dividend, which was paid on Tuesday, July 7th. Investors of record on Monday, June 22nd were issued a $1.22 dividend. This represents a $4.88 dividend on an annualized basis and a dividend yield of 1.5%. The ex-dividend date of this dividend was Monday, June 22nd. FedEx’s payout ratio is currently 26.36%.

FedEx Company Profile (Free Report)

FedEx Corporation (NYSE: FDX) is a global logistics and courier company headquartered in Memphis, Tennessee. Founded by Frederick W. Smith in 1971 and beginning operations in the early 1970s, the company pioneered overnight express shipping and has since expanded into a diversified portfolio of transportation, e-commerce and supply-chain services. FedEx operates an integrated air-and-ground network that moves parcels, freight and documents for businesses and consumers worldwide.

FedEx’s core operating segments include express parcel delivery via its FedEx Express division, domestic and residential parcel delivery through FedEx Ground, less-than-truckload (LTL) freight services, and logistics and supply-chain management solutions.

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Key Takeaways FedEx beat fiscal 2026 fourth-quarter earnings and revenue estimates, aided by B2B demand.FDX expects about 11% revenue growth and adjusted EPS of $16.90-$18.10 in calendar 2026. Higher fuel costs and the end of the de minimis exemption may pressure FedEx's near-term margins. FedEx Corporation (FDX - Free Report) , a leading parcel delivery company with a market capitalization of around $75 billion, has seen its shares jump more than 10% so far this year. Improved operational efficiency driven by prudent cost-cutting measures has buoyed the company’s shares. Strong cash flows, a disciplined approach to capital expenditure and resilience in demand in the U.S. domestic package network, despite global uncertainties, have been boosting the company's prospects.

Despite the double-digit gain (% wise) year to date, the stock has marginally underperformed the Zacks Transportation—Air Freight and Cargo industry and rival United Parcel Service (UPS - Free Report) . FDX has, however, outperformed fellow industry player GXO Logistics (GXO - Free Report) .

YTD Price Comparison<Image Source: Zacks Investment Research

Given the stock’s double-digit price gain on the back of the company’s ongoing cost-cutting initiatives aimed at boosting bottom-line growth, investors may be questioning whether it is a buy at present. Let’s take a closer look to address this question.

FDX Performs Well in Q4 FY26 & Gives Bullish OutlookIn the fourth quarter of fiscal 2026, results of which were released last month, FedEx’s earnings (excluding 29 cents from non-recurring items) of $6.31 per share beat the Zacks Consensus Estimate of $5.91 as well as improved 3.9% year over year. The company’s bottom line benefited from share repurchase activity.

Revenues of $25 billion came ahead of the Zacks Consensus Estimate of $24.1 billion and improved 12.5% from the year-ago quarter. In the quarter, the majority of the revenue growth was driven by business-to-business (“B2B”) services and the three-month period was the brightest quarter within fiscal year 2026 from a B2B perspective. This is in line with the company’s continuous efforts to move away from low-margin parcel traffic.

To bolster margins, FedEx is shifting its focus toward high-margin B2B segments — specifically healthcare, aerospace, automotive and data centers. In Europe, the company achieved its 12th consecutive quarter of international revenue share gains, driven by the strong value proposition and improving service levels.

Apart from focusing on AI tools to improve efficiency and customer experience, the transportation giant is keeping CapEx low to boost profitability. As part of its cost discipline, the company aims to achieve a CapEx of $3.9 billion in calendar year 2026. We note that the company has changed its fiscal year-end from May 31 to Dec. 31. The fiscal year change became effective for the period beginning June 1, 2026.

For the calendar year 2026, FedEx anticipates revenue growth of approximately 11%, including about 3 percentage points of assumed fuel price-driven surcharge benefit. The outlook is likely to be supported by continued momentum within base pricing and increased demand for premium B2B and high-value B2C services. This translates to an adjusted EPS range of $16.90 to $18.10. Robust free cash flow is expected to be generated in the period, with the company intending to repurchase up to $1 billion worth of shares. The company expects to generate cost savings worth $2 billion by the end of calendar 2027.

Driven by the cost-cutting initiatives and the impressive outlook, the consensus price target for FDX stock is $357.58, implying an upside of more than 14% from current levels.

Image Source: Zacks Investment Research

Near-Term Headwinds PersistNo doubt, FedEx is seeing consistent improvement, largely supported by efficiencies driven by artificial intelligence, but its near-term outlook remains somewhat uneven. Rising fuel prices, regulatory shifts and wider macroeconomic challenges continue to act as significant obstacles.

With the United States and Iran once again exchanging fire, the already fragile ceasefire is under renewed strain. The uptick in oil prices, following the renewed hostilities, is putting pressure on transportation companies like FedEx.

Since fuel is a major cost component for such businesses, higher prices directly impact profitability. The disruption of the Strait of Hormuz — an essential oil transit route under Iran’s control — has further intensified the situation. Nearly 20% of the world’s traded oil moves through this passage and the disturbance has pushed diesel and jet fuel costs higher, raising expenses across FedEx’s global delivery operations. Moreover, the increase in hostilities in the Ukraine-Russia conflict has accentuated the uncertain global scenario.

In addition, evolving global trade policies are weighing on FedEx’s short-term outlook. The United States has eliminated the “de minimis” exemption for low-value shipments, leading to higher international shipping costs. FedEx now encounters increased brokerage expenses and operational challenges as it must handle formal customs procedures for shipments that were previously exempt from duties. These factors are likely to weigh on margins in the near term, even as FDX works to offset some of the impact through pricing and cost controls.

Valuation CheckFDX stock is trading at 0.78X forward sales, lower than the industry. Its closest peer, United Parcel Service, has a P/S ratio of 1.08. Meanwhile, GXO Logistics is trading at a forward sales multiple of 0.43. FedEx has a Value Score of B, like United Parcel Service and GXO Logistics

FDX Shares Don’t Appear to be PriceyImage Source: Zacks Investment Research

Our Take: Hold for NowFDX’s long-term outlook is becoming increasingly favorable, supported by its emphasis on higher-margin B2B segments, which enhances earnings visibility and margin expansion potential. The company’s commitment to strengthening its bottom line through cost-reduction initiatives is particularly encouraging and could become an increasingly important driver of the long-term investment thesis.

That said, the near-term outlook remains somewhat mixed. Elevated fuel costs, challenges stemming from the removal of the de minimis exemption and broader external uncertainties may continue to weigh on earnings momentum over the next few quarters. Currently, the risk-reward profile does not appear attractive enough to justify a new investment. We believe the stock remains worth holding for investors with a long-term horizon. Potential investors may prefer to wait for a more attractive entry point.

FedEx currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. 

16.7.2026 22:00

Negativní sentiment se před koncem obchodní seance ještě více prohloubil. Může za to silný pokles technologického giganta Google, u kterého přišla zpráva, že je v několikaměsíčním zpoždění s vydáním nové vlajkové AI verze Geminy Pro 3.5. V prostředí velké konkurence to může mít neblahý efekt ztráty poptávky. Akcie Alphabet končí silnou ztrátou –4,43 %.

Nevalný výsledek zažil i čipový sektor, kde velkou váhu poklesu má na svědomí Micron -5,65 % či AMD -5,33 %.

Oproti tomu se dařilo defenzivním sektorům spotřebního zboží či služeb. McDonald přidal slušných +3,04 %, PepsiCo též +2,97 % a například kartová asociace Mastercard +3,04 %.

Ropa WTI stále mírně ztrácela -0,75 %. Negativní vývoj na burze tedy dnes nebyl ovlivněn negativní geopolitickou situací.

Index Dow Jones -0,2 % na 52553,62 b.
S&P 500 -0,51 % na 7533,89 b.
Nasdaq Composite -1,47 % na 25881,95 b.

Index S&P 500 -0,51 % na 7533,89 b. Nejsilnější sektory S&P Změna Nejslabší sektory S&P Změna Nezbytná spotřeba +2,9 % Komunikační služby -2,8 % Zdravotní péče +2,2 % Informační technologie -1,8 % Reality +2,1 % Zbytná spotřeba -0,3 % Nejsilnější akcie S&P Změna Nejslabší akcie S&P Změna Abbott Laboratories (ABT) +11 % Sandisk Corp (SNDK) -13 % JB Hunt Transport Services (JBHT) +8,0 % Seagate Technology Holdings (STX) -10,0 % Fedex Freight Holding (FDXF) +7,5 % Corning (GLW) -9,2 % Erie Indemnity (ERIE) +7,5 % Western Digital Corp (WDC) -9,2 % Dexcom (DXCM) +7,2 % Marvell Technology (MRVL) -8,7 %
Jan Pazourek, Fio banka, a.s.

MEMPHIS, Tenn.--(BUSINESS WIRE)--FedEx Corp. (NYSE: FDX) (“FedEx”) today announced the pricing terms of its previously announced cash tender offers (each, an “Offer” and, collectively, the “Offers”) to purchase up to $4,150,000,000 aggregate purchase price, not including accrued and unpaid interest (the “Offer Cap”), of FedEx's validly tendered (and not validly withdrawn) notes set forth below (collectively, the “Notes”), using a “waterfall” methodology under which FedEx will accept the Notes i.

9.7.2026 22:03

Ke konci obchodní seance se mírně přelil kapitál z čipových společností do klasických technologických. Přesto společnosti jako AMD + 5,67 %, Micron +4,39 %, či Broadcom +3,2 % končí výrazně v zeleném a čipový sektor táhl celý trh. Společnosti SpaceX se podařilo dostat opět nad otevírací cenu po IPO a přidala dnes +2,65 %.

Sektor spotřebního zboží dnes táhly dolů akcie PepsiCo, která po ne příliš oslnivých výsledcích odepsala nakonec -3,26 %. V kladných hodnotách se udržely i kryptoměny, kdy Bitcoin přidal +1,8 %.

Na opačné straně stála cena ropy, kde WTI propadl o -2,22 %, a to z důvodu mírného uklidnění situace v Íránu.

Index Dow Jones +0,27 % na 52487,38 b.
S&P 500 +0,81 % na 7543,54 b.
Nasdaq Composite +1,3 % na 26206,89 b.

Index S&P 500 +0,81 % na 7543,54 b. Nejsilnější sektory S&P Změna Nejslabší sektory S&P Změna Informační technologie +1,6 % Nezbytná spotřeba -1,8 % Zbytná spotřeba +1,5 % Energie -1,6 % Finanční sektor +1 % Utility -0,5 % Nejsilnější akcie S&P Změna Nejslabší akcie S&P Změna Lumentum Holdings (LITE) +11 % APA Corp (APA) -5,1 % Hewlett Packard Enterprise (HPE) +9,9 % Paramount Skydance Corp (PSKY) -4,3 % Fedex Freight Holding (FDXF) +7,6 % Costco Wholesale Corp (COST) -4,2 % Sandisk Corp (SNDK) +7,6 % Cincinnati Financial Corp (CINF) -3,4 % Norwegian Cruise Line Holdings (NCLH) +7,0 % PepsiCo (PEP) -3,3 %
Jan Pazourek, Fio banka, a.s.

 | 

FedEx plans to sell FedEx Supply Chain to CMA CGM Group, a Marseille-based global provider of sea, land, air and logistics solutions, at an enterprise value of $1.4 billion.

The acquisition is expected to close by the end of the year, subject to customary regulatory approvals, the companies said in a Wednesday (July 1) press release.

FedEx Supply Chain provides warehousing, distribution, fulfillment, returns, recycling and transportation management services, according to a company structure page on FedEx’s website.

Upon the closing of the acquisition, CMA CGM subsidiary CEVA Logistics would see its North American contract logistics operations nearly triple in size. After integrating FedEx Supply Chain’s assets and nearly 10,000 team members, CEVA Logistics would operate about 150 warehouses and have 20,000 employees in North America, according to the release.

In addition, following the execution of the transaction, CMA CGM and FedEx expect to enter into multiyear commercial agreements in which CMA CGM will become a preferred ocean carrier for FedEx and the companies will work together on air cargo capacity solutions. These agreements are expected to begin between now and 2028, per the release.

CMA CGM Group Chairman and CEO Rodolphe Saadé said in the release that the acquisition and partnership will expand CEVA Logistics’ activities in North America and strengthen the company’s ability to provide integrated supply chain solutions.

“These deals also reinforce our long-term commitment to investing in the United States and supporting the resilience and efficiency of its supply chain,” Saadé said.

FedEx President and CEO Raj Subramaniam said in the release that the sale of FedEx Supply Chain enables FedEx to continue sharpening its focus on high-value verticals such as healthcare, automotive, aerospace and data centers.

“By streamlining our portfolio, FedEx is better positioned to execute our long-term vision and continue to serve as the heartbeat of the industrial economy, delivering unmatched connectivity, reliability and value to our customers globally,” Subramaniam said.

When reporting its quarterly earnings on June 23, FedEx said that it finalized the spinoff of its less-than-truckload (LTL) business, FedEx Freight, into a new publicly traded company on June 1. The company said in an earnings presentation that the move positions both companies for success as “focused industry leaders.”

Published June 30, 2026 5:18pm EDT

Federal agency says blind employees were denied reasonable accommodations needed to perform essential job duties The U.S. Equal Employment Opportunity Commission (EEOC) has launched a federal lawsuit against Federal Express Corporation, alleging the delivery giant violated federal law by discriminating against blind employees at a North Carolina facility.

The federal agency claims that FedEx, formerly known as FedEx Ground Package Systems, Inc., failed to provide reasonable accommodations to four package handlers and a larger class of blind workers at its Kernersville location. 

According to the lawsuit, denying the accommodations prevented the employees from performing their essential job functions and enjoying the same employment privileges as workers without disabilities.

FILE - FedEx trucks are parked at a distribution center on May 3, 2025 in San Diego, California.  (Kevin Carter / Getty Images)

FEDEX SUES TRUMP ADMINISTRATION FOR FULL TARIFF REFUNDS AFTER SUPREME COURT RULING ON IEEPA

In addition to the discrimination charges, the EEOC suit alleges FedEx failed to maintain required administrative records in compliance with federal law.

Melinda Dugas, the regional attorney for the EEOC’s Charlotte district, said the alleged conduct is a clear violation of the Americans with Disabilities Act, which mandates workplace accommodations for disabilities unless they cause an undue hardship for the employer.

FILE - Side view of Fedex Ground shipping truck in San Ramon, California, March 3, 2022. (Smith Collection/Gado/Getty Images / Getty Images)

FEDEX CEO SAYS SHIPPING REGULATIONS CREATING 'IMPOSSIBLE BURDEN' FOR COMPANY: 'WE ARE EXPECTED TO BE THE POLICEMAN'

"Federal law is clear that failure to provide a needed reasonable accommodation for a disability where one is available and can be provided without causing undue hardship is unlawful discrimination," Dugas said.

Ticker Security Last Change Change % FDX FEDEX CORP. 313.11 -12.15 -3.74% The agency noted that it pursued litigation only after prior attempts to reach a pre-litigation settlement through an administrative conciliation process were unsuccessful.

FILE - FedEx is a delivery service with operations around the world.

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FedEx did not immediately respond to FOX Business’ request for comment.

FedEx Corp (NYSE:FDX) slipped 1.8% to $323.57 after FedEx Freight (FDXF) reported mixed quarterly results. In its first earnings release as an independent company, FedEx Freight posted a drop in operating income to $158 million, down 66.9% from a year prior. Results were weighed down by $205 million in costs related to its separation from FedEx Corporation, highlighting the financial impact of the recent spinoff. 

On the charts, FDX have recovered to back above the supportive $320 level after a brief pullback on June 24. The stock has shed just 6% since its June 15 all-time high of $345.36 and still boasts an 85% 12-month lead. 

Plus, FDX puts have been popular in recent days. This is per the shipping name's 10-day put/call volume ratio of 1.73 at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which sits in the 85th percentile of its annual range. Echoing this is FDX's Schaeffer's put/call open interest ratio (SOIR) of 1.02, which indicates a heavy preference for puts among short-term traders.

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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

The company expects revenue to grow 4% to 6% for June 1 to Dec. 31, and said the outlook reflects its confidence in the underlying strength of the business.

FedEx Today

$316.89 -0.35 (-0.11%)

As of 06/24/2026 03:59 PM Eastern

This is a fair market value price provided by Massive. Learn more.

52-Week Range$172.88▼

$345.36Dividend Yield1.54%

P/E Ratio17.12

Price Target$351.60

FedEx NYSE: FDX shares fell more than 5% following its Q4 fiscal year 2026 (FY2026) earnings release, raising the question of whether it’s time to get out of this recovery story or lean harder into the trade. The risk is a weaker-than-expected earnings outlook.

The offset is that the consensus estimate may not fully reflect the impact of the FedEx Freight spin-off and the improvements in cash flow it will bring, as well as potential caution in the guidance. FedEx Freight’s spin was completed in early June, setting the stage for accelerated growth and margin strength in upcoming quarters.

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FedEx Enters Transition Year on Strong FootingFedEx ended fiscal 2026 on an upbeat note, with fourth-quarter revenue rising 12.5% year over year (YOY) to $25 billion, ahead of analyst expectations. Revenue outpaced MarketBeat’s reported consensus by more than 385 basis points (bps), on strength in both segments. FedEx Freight grew by 4.8% in its last quarter in the portfolio, led by a much stronger 13.7% increase in FedEx Express. Express revenue grew on the strength of volume and pricing, both domestically and abroad, and is expected to remain strong in the upcoming quarters.

Margin news is also good. The company’s GAAP margin contracted on one-offs, many of which were non-cash or tied to spin-off activities. However, the adjusted margin was much better, reflecting structural improvements over the last year, leaving adjusted profits up on a YOY basis. The critical detail is that Q4 adjusted earnings topped $6.31, up 390 bps YOY, and 36 cents ahead of the consensus forecast.

Guidance is the sticking point as the transition year begins, but investors should note that the transition includes a shift in reporting periods. FedEx’s fiscal year will now align with the calendar year, leaving the next seven months as a standalone period. As it stands, management expects spin-off-linked momentum to continue through calendar year-end and calendar year revenue growth in the range of 11%. Earnings are forecast with an adjusted midpoint of $17.50, well below the consensus, but the calendar-year forecast and fiscal-year period estimates may not be aligned.

FedEx Improves Capacity to Return CapitalAmong the impacts of the FedEx Freight spin-off is an improvement in the capacity to return capital. Not only did the spin involve a multibillion-dollar cash injection into the parent’s balance sheet, but it also improved the cash flow outlook in the long term. FedEx’s new war chest is specifically earmarked for debt reduction, aggressive share buybacks, and other tax-efficient measures to boost shareholder value.

As it stands, the company returned approximately $2.2 billion on a trailing 12-month (TTM) basis and is already on track to grow the figure over the coming 12 months. The company increased its dividend payout by 5% for the transition period and is likely to increase it again in the upcoming 2027 fiscal year. Buybacks amounted to 1.4% of the share count, TTM.

Analysts Caution Sets Up Dip-Buying OpportunityAnalysts responded cautiously to the news, praising the FQ4 strength but expressing concern over the guidance. The likely outcome is that they limit upside potential over the coming months while maintaining the bullish posture indicated by the data. MarketBeat tracks 29 analysts with current ratings; they rate the stock a Moderate Buy, with a 62% Buy-side bias within the group. The consensus estimate suggests a 12% upside relative to the pre-release closing price, as of late June, but investors should expect that to fall as the summer progresses.

Overall MarketRank™92nd Percentile

Analyst RatingModerate Buy

Upside/Downside11.0% Upside

Short Interest LevelHealthy

Dividend StrengthModerate

News Sentiment0.44 Insider TradingSelling Shares

Proj. Earnings Growth5.19%

See Full Analysis

The catalyst for higher share prices will come later this year. Subsequent earnings results will likely reflect the company’s strengths and internal improvements, as well as signs of what the upcoming year will bring. While quarterly reports can provide the necessary market impetus, it will be the calendar-year 2027 guidance that matters most. Assuming growth, margin strength, cash flow, and capital returns, the stock price uptrend will likely continue.

Institutions are among the reasons the FDX pullback looks like a buy-the-dip opportunity. The group owns more than 85% of the stock and has been accumulating at a $2-to-$1 pace over the TTM period, sustaining a bullish balance in each quarter. The group will likely sustain the bullish balance, given the price discount and cash flow outlook, but may slow its pace until later in the year when new catalysts emerge.

Chart action reflects a market top, with the June highs offset by obvious and significant MACD divergence. The divergence reflects an underlying weakness, with prices above $320 setting the stage for a post-release price pullback. The question is how deeply the FDX market will pull back, and the floor may be near $280. The $280 level aligns with prior support and price action, with MACD at historically high levels, potentially a trigger point for institutions and other buy-and-hold investors.

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Sprott Asset Management Director, ETF Product Management Jacob White joined Steve Darling from Proactive to discuss the outlook for the silver market, highlighting recent price volatility, long-term demand drivers, and ongoing supply constraints that continue to shape the metal’s investment case.

White said silver has experienced significant price swings over the past two years, climbing from an average of roughly US$24 per ounce in 2024 to as high as US$117 to US$118 per ounce in early 2026, before pulling back to around US$60 per ounce. Despite that correction, he noted that silver remains well above historical price levels.

The discussion focused on silver’s unique dual role as both a monetary metal and an industrial commodity. White said the metal has benefited from many of the same macroeconomic forces that have supported gold, including central bank activity, inflation concerns, and broader fears of currency debasement.

At the same time, industrial demand for silver continues to strengthen, particularly because of its unmatched electrical conductivity, which makes it a critical material in a wide range of industrial and energy applications.
One of the biggest long-term demand drivers, according to White, is the rapid buildout of solar energy infrastructure and broader efforts to improve energy security. He noted that governments and companies are increasingly investing in renewable energy not only to meet environmental goals, but also to reduce dependence on external energy sources, a trend that is creating sustained incremental demand for silver. 

On the supply side, White pointed out that the silver market continues to face structural constraints. Most silver is produced as a byproduct of other mining operations, which limits the industry’s ability to quickly ramp up output when prices rise. As he noted, the market has now experienced seven consecutive years of supply deficits, with demand consistently outpacing new supply. Above-ground silver inventories have also declined significantly during that period, adding further support to the long-term outlook.

Management believes the combination of strong industrial demand, silver’s monetary role, and persistent supply tightness continues to underpin a constructive long-term view on the silver market despite ongoing short-term volatility.

#Sprott #Uranium #NuclearEnergy #Investing #HANetf #Silver #Sprott #PreciousMetals #SilverMarket #MiningStocks #CommodityMarkets #SolarEnergy #EnergyTransition #InflationHedge #ETFInvesting

FedEx Corp (NYSE:FDX, XETRA:FDX) shares fell on Wednesday following its latest earnings report, even as Bank of America said the company continues to show strong underlying earnings momentum, with the post-earnings decline driven more by reporting-transition complexity than by operational weakness.

FedEx reported adjusted earnings per share of $6.31 for fiscal fourth-quarter 2026, up 4% year over year and ahead of Bank of America and consensus estimates of roughly $5.95 and $5.97, respectively.

The beat was driven primarily by strength in the Freight segment, which delivered higher-than-expected operating income, while the Express business also contributed positively on improved international export volumes, pricing discipline, and favorable mix trends.

According to Bank of America, the quality of the quarter was broadly stronger than expected, with momentum in pricing, mix, and cost execution continuing to support profitability across the network.

Freight was the standout contributor, with operating income of $363 million coming in $71 million above the firm’s forecast, supported by revenue per shipment growth of 11% year over year versus expectations for low-single-digit gains.

Express also outperformed, with revenue up 14% year over year, well above the bank’s 8% estimate, driven by stronger yields and international volume growth of 5% versus expectations of 2%.

Despite the solid results, Bank of America noted that investor reaction was dampened by FedEx’s introduction of a transition-period outlook tied to its shift toward calendar-year reporting.

The company forecast earnings growth of about 20% year over year for the second half of calendar 2026 and provided a full-year calendar 2026 EPS range of $16.90 to $18.10. Management also outlined June–December 2026 EPS of about $11.30, which it said bridges into the broader calendar-year outlook and reflects normal seasonality alongside one-time impacts from incentive compensation costs and stranded Freight expenses.

The bank’s analysts believe that this new framework created “near-term noise” in earnings comparability, as fiscal and calendar-year figures overlap and make near-term trends harder for investors to interpret.

They noted that FedEx expects a larger portion of transition-period earnings to be concentrated in fiscal fourth-quarter 2026, reflecting peak-season strength.

Bank of America reiterated that, despite the reporting complexity, the underlying transformation story remains on track. The firm highlighted ongoing benefits from network integration, pricing discipline, and cost actions across both Domestic and International segments, with management continuing to target margin improvement through the transition period.

The firm maintained a ‘Buy’ rating on FedEx and raised its price objective to $378 from $376, valuing the shares at 17.5 times its revised calendar 2027 EPS estimate, slightly down from 18.5 times previously.

Bank of America also raised its 2027 EPS forecast by 6% to $21.60 from $20.28, citing stronger-than-expected operating income trends and improved visibility into margin expansion.

Bank of America said it continues to see mid-teens operating income compound annual growth potential through 2029, supported by sustained pricing discipline, efficiency gains, and continued execution of FedEx’s long-term network optimization strategy.

FedEx shares were down 1.5% at about $313 on Wednesday afternoon.

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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Listen below or on the go on Apple Podcasts and Spotify

Reddit crowd piles into fast food. (0:15) Hertz plunges after proposing stock and bond offerings. (1:19) SK Hynix unveils plans for $29.4B Nasdaq listing. (2:11)

This is an abridged transcript of the podcast:

Our top story so far, the Frosty maker's getting frothy and the taco maker's on a tear.

Wendy's (WEN) is rallying more than 25% after becoming a favorite topic on the WallStreetBets Reddit (RDDT) community.

The fast-food chain features the classic meme-stock recipe of high short interest and an iconic consumer brand.

"WEN is currently sitting at $6 (ouch.) The market cap is barely over $1B. We're talking about a nationally recognized brand with 7,000+ restaurants globally, a business model that is mostly franchised. Their dividend is actually not too bad given the price," read one post calling on the "pigtailed savior to make a comeback."

In May, Wendy's appointed Robert Wright as chief executive, taking over from interim CEO Ken Cook. Earlier this year, Nelson Peltz's Trian Fund was reportedly seeking investor backing for a takeover bid.

Shares of Wendy's had drifted to a multi-year low of $6.07 on Tuesday before the social-media campaign kicked into overdrive.

And Jack in the Box (JACK) is along for the ride, posting its best day in nearly five years with shares up more than 15%.

About one-third of the company's float is sold short, helping fuel a round of short covering as meme traders piled into the name.

Among other active stocks, Hertz (HTZ) is plunging 30% after proposing a $100M stock offering alongside a $300M bond offering.

FedEx (FDX) is lower despite beating earnings expectations. Looking ahead, FedEx forecast calendar 2026 EPS of $16.90 to $18.10, with the top end barely above the $18.09 consensus.

Take-Two Interactive (TTWO) is choppy after its Rockstar Games division confirmed that pre-orders for Grand Theft Auto VI will begin June 25 at midnight local time.

The highly anticipated game for Sony's PS5 and Microsoft's (MSFT) Xbox Series X/S will cost $79.99, with the Ultimate Edition priced $20 higher.

And Adobe (ADBE) released initial figures for Amazon's (AMZN) four-day Prime Day event, which is being matched by other major e-commerce sellers.

Online spending rose 5.3% year over year to $8.3B on Tuesday, the first day of the sale.

In other news of note, red-hot South Korean memory-chip maker SK Hynix (HXSCL) has announced plans for a $29.4B Wall Street listing.

The company plans to list American Depositary Shares on the Nasdaq Global Select Market under the symbol "SKHY" and begin trading on July 10.

The offering is being led by Bank of America, Citigroup, Goldman Sachs and JPMorgan.

And in the Wall Street Research Corner, fun for fans, but not a boon for business.

Pantheon Macro says the World Cup has yet to provide a meaningful boost to U.S. economic activity.

Business surveys, card-spending data and airline passenger traffic show little evidence that the tournament is supporting demand.

June PMI surveys suggest the economy has less momentum than it did a year ago.

Meanwhile, non-gas spending in June has converged with year-ago levels after posting annual increases in every previous month this year.

Growth in airline passenger traffic through TSA checkpoints has also remained near zero so far this month.

Editor's Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.

FedEx FDX remains relatively unchanged in trading after reporting significant earnings per share (EPS) growth and moderate revenue gains for its Q4 (May) earnings. This report is particularly noteworthy as it marks the first time FedEx is evaluated as a standalone entity following the spin-off of its FedEx Freight FDXF segment on June 1. Additionally, FedEx has shifted its fiscal year-end from May 31 to December 31, aligning with the calendar year. This change may lead to some confusion when comparing future results to consensus estimates.

For guidance, FedEx anticipates adjusted EPS from continuing operations for calendar year 2026 to range between $16.90 and $18.10. The company also projects an 11% revenue increase on a base of approximately $82 billion for calendar year 2025.

Express Quality: FedEx Express reported a 14% year-over-year revenue increase in Q4, with adjusted operating income rising by 13%. Key metrics include a 3% increase in U.S. domestic volume, a 5% rise in international export package volume, a 12% boost in export freight pounds, and an 11% improvement in package yield. Headwinds: Despite facing significant challenges such as global trade policy shifts and the grounding of its MD-11 aircraft fleet, FedEx celebrated its Q4 performance. The company began safely reintroducing the MD-11s last month and expects the entire fleet to be operational ahead of the peak season. Mix Over Volume: Management highlighted that U.S. growth was primarily driven by Ground commercial and Home Delivery services. However, Ground Economy volume intentionally decreased by about 5% as FedEx focused on higher-yield business opportunities. Additionally, international domestic volume fell by 9% as part of a profit-improvement strategy in Europe. Margins and Cost Bridge: Management noted that variable compensation significantly impacted Q4 profitability. While fuel surcharge revenue contributed to revenue growth, it did not enhance net profit materially; excluding fuel effects, margins would have shown year-over-year growth. Transformation Progress: FedEx exceeded its $1 billion savings target from initiatives such as Network 2.0 and Tricolor. The company is on track to achieve nearly $1 billion in savings from Network 2.0 and related One FedEx projects by the end of calendar year 2026, and $2 billion by the end of 2027. FedEx's recent quarter demonstrated solid performance across key metrics, showcasing strong earnings, improving package yields, and healthy volume trends in both domestic and international markets. This report provides insight into FedEx's operations as a standalone transportation entity post-Freight spin-off, a move management believes will enhance shareholder value over time. The stock's tepid reaction may reflect investor expectations rather than operational execution, especially since shares had surged around 75% from their October lows in anticipation of the spin-off and potential valuation increases. Against this backdrop, FedEx's outlook for calendar year 2026 appears promising, though not extraordinary.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

The day after FedEx (NYSE:FDX | FDX Price Prediction) reported, the stock is down again, and an analyst on CNBC’s Closing Bell Overtime spent his segment trying to convince viewers that the people selling are reading the wrong line of the income statement. The shares finished the prior session lower and slid another 1.83% in Wednesday’s session to $311.43, after dropping roughly 9.3% in the first hour following the 8-K hitting Tuesday after the close. That gives you a stock that is up 70% over the past year and is still up sharply year to date, now marked down on a quarter most of the sell side spent the prior week telling clients would be a beat.

The revenue beat the analyst says is getting buried The analyst’s pitch starts with the headline numbers. Revenue of $25 billion came in roughly a billion dollars ahead of consensus, adjusted EPS of $6.31 topped the Street by $0.36, and Federal Express segment revenue grew 14% year over year to $21.57 billion. International priority package revenue grew 20%, with yield up 16% to $71.12. The streak now stands at four consecutive quarters of beating Wall Street. The full earnings release is on file with the regulator here.

So what is the market mad about? Operating income fell 21.94% year over year. That is the number that traders are anchoring to, and the analyst argued that anchor is on the wrong bottom.

Why fuel surcharges may be distorting the margin picture FedEx passes fuel costs through to customers via surcharges, but the surcharge formula resets on a lag. When WTI is calm, the math is invisible. When WTI goes vertical, it stops working. And vertical is what happened. Crude spiked to $114.58 per barrel on April 7, 2026 and stayed elevated through May, with prices touching $112.25 in mid-May before drifting back toward the mid-$80s by mid-June.

The analyst put it this way on air. “Fuel prices were obviously very parabolic in the early part of the quarter. You can have an EBIT offset with fuel surcharges, but if your costs go up by the same amount as your revenue, that could be margin dilutive.” Both sides of the ratio inflate together, so the percentage shrinks even though the dollars of profit don’t. Revenue gets a fuel-driven tailwind, costs get the same dollar tailwind, and the margin line looks worse than the underlying franchise is performing. If WTI normalizes (and the latest reading suggests it might be), that optical compression unwinds.

The guide that doesn’t fit on a single line The other half of the misinterpretation argument is about the calendar. FedEx is moving its fiscal year-end from May 31 to December 31 effective June 1, 2026, which leaves a seven-month stub period with no clean consensus to compare against. The guide of roughly 11% year-over-year revenue growth is, by the analyst’s read, well above his own 7% model, even though the headline screen-read of adjusted EPS of $16.90 to $18.10 looks soft against a stale consensus near $19.86. A new pilots agreement loading into the back half of calendar 2026 adds cost, but the analyst said that one “should have been anticipated.”

Package volume came in light, but yield made up the gap and then some. Composite package yield was up 11% to $17.90, U.S. priority yield rose 10% to $28.41, and transformation work delivered more than $1 billion in cost savings against a stated target of $1 billion. Capital spending closed at 4.0% of revenue, the lowest in company history. CEO Raj Subramaniam said “Our profitable growth strategy is working.”

UBS kept its Buy rating but cut its target to $350 from $445, while Bernstein went into the quarter at Outperform with a $424 target. The first FedEx Freight quarter as a standalone public company will be the first place to test whether the parcel margin story holds without the freight headwind in the consolidated line.

Delivered Significant Revenue and Earnings Growth Year-over-Year
Introduces CY 2026 Outlook
Expects Continued Revenue and Earnings Growth Momentum in June-through-December Transition Year

MEMPHIS, Tenn.--(BUSINESS WIRE)--FedEx Corp. (NYSE: FDX) today reported the following consolidated results for the fourth quarter ended May 31 (adjusted measures exclude the items listed below):

Fiscal 2026

Fiscal 2025

As Reported
(GAAP)

Adjusted
(non-GAAP)

As Reported
(GAAP)

Adjusted
(non-GAAP)

Revenue

$25.0 billion

$25.0 billion

$22.2 billion

$22.2 billion

Operating income

$1.55 billion

$2.09 billion

$1.79 billion

$2.02 billion

Operating margin

6.2%

8.4%

8.1%

9.1%

Net income

$1.60 billion

$1.53 billion

$1.65 billion

$1.46 billion

Diluted EPS

$6.60

$6.31

$6.88

$6.07

This year’s and last year’s quarterly consolidated results have been adjusted for:

Fiscal 2026

Fiscal 2025

Impact per diluted share

Fourth
Quarter

Full
Year

Fourth
Quarter

Full
Year

Mark-to-market (MTM) retirement plans accounting adjustments

($

2.05

)

($

2.08

)

($

1.63

)

($

1.60

)

FedEx Freight spin-off costs

0.97

2.46

0.11

0.18

Business optimization costs

0.66

1.19

0.39

2.37

Fiscal year change costs

0.04

0.11

—

—

Asset impairment charges

0.07

0.08

0.07

0.06

International regulatory and legacy FedEx Ground legal matters

—

(0.07

)

0.26

0.37

Consolidated adjusted operating income improved in the fourth quarter, reflecting continued strength in U.S. Domestic and International Priority package yields, cost savings from transformation initiatives, and increased U.S. domestic and international export package volume.

“Team FedEx delivered an impressive finish to a strong fiscal year, providing excellent service to our customers and successfully executing on our transformation initiatives,” said Raj Subramaniam, FedEx Corp. president and chief executive officer. “Our profitable growth strategy is working. We are building momentum across our global industrial network, driving structural improvements and winning in high-value growth markets. With the successful spin-off of FedEx Freight, we are entering this next chapter positioned to grow while further optimizing our network, lowering our cost to serve, creating meaningful long-term value, and driving robust free cash flow.”

Fourth Quarter Results

Federal Express segment operating results improved during the quarter, driven by higher U.S. domestic and International Priority package yields, continued cost savings from transformation initiatives, and increased U.S. domestic and international export package volume. These factors were partially offset by increased purchased transportation and wage rates, higher variable incentive compensation expenses, and the financial impacts of global trade policy changes.

Fourth quarter results include a noncash impairment charge of $23 million ($0.07 per diluted share) from the decision to permanently retire 10 aircraft. Last year's fourth quarter results included a noncash impairment charge of $21 million ($0.07 per diluted share) from the decision to permanently retire 12 aircraft, plus eight related engines. These retirements are aligned with the company's fleet reduction and modernization strategy as the company continues to improve its global network efficiency and better align air network capacity with anticipated demand.

Full-Year Results

For the full fiscal year, FedEx Corporation reported the following consolidated results (adjusted measures exclude the items listed above for the applicable fiscal year):

Fiscal 2026

Fiscal 2025

As Reported
(GAAP)

Adjusted
(non-GAAP)

As Reported
(GAAP)

Adjusted
(non-GAAP)

Revenue

$94.7 billion

$94.7 billion

$87.9 billion

$87.9 billion

Operating income

$5.46 billion

$6.61 billion

$5.22 billion

$6.12 billion

Operating margin

5.8%

7.0%

5.9%

7.0%

Net income

$4.43 billion

$4.84 billion

$4.09 billion

$4.43 billion

Diluted EPS

$18.55

$20.24

$16.81

$18.19

Results reflect lower structural costs as the company exceeded its goal of $1 billion of transformation-related cost savings during the year.

Capital spending for fiscal 2026 totaled $3.8 billion, a decrease of $246 million, or 6%, compared with fiscal 2025. Capital spending as a percentage of revenue declined to 4.0%, the lowest annual level in FedEx Corporation history.

FedEx Freight Spin-off Completed

The spin-off of FedEx Freight into a new publicly traded company was finalized on June 1, 2026. In connection with the spin-off, FedEx Freight paid a cash dividend of approximately $4.1 billion to FedEx Corporation from the proceeds of the $3.7 billion senior notes offering completed in February 2026 and borrowings under its delayed-draw term loan facility.

FedEx Freight will host a call to discuss the company's fourth quarter results on June 25, 2026.

Fiscal Year Change

In January 2025, the FedEx Board of Directors approved a change in the company’s fiscal year end from May 31 to December 31. The fiscal year change became effective for the period beginning June 1, 2026.

Cash and Capital Returns

The ending cash and cash equivalents balance of $13.3 billion includes a $4.1 billion cash dividend from the FedEx Freight spin-off. The dividend will be utilized in a manner consistent with preserving the tax-free nature of the transaction. In addition, the reported cash balance includes approximately $800 million in IEEPA tariff refunds held for refund to customers.

During fiscal 2026, FedEx returned approximately $2.2 billion to stockholders through the combination of $776 million of stock repurchases and $1.4 billion of dividend payments. Repurchases during fiscal 2026 totaled approximately 3.3 million shares, or 1.4% of the shares outstanding at the beginning of the year, and increased fourth quarter and full-year earnings by $0.09 and $0.21 per share, respectively. As of May 31, 2026, $1.3 billion remained under the company's 2024 stock repurchase authorization.

For calendar 2026, FedEx remains committed to returning capital to stockholders, including the previously announced 5% increase in the annual dividend on its common stock, after adjusting for the FedEx Freight spin-off. The company also intends to repurchase up to $1 billion worth of shares opportunistically, leveraging continued balance sheet flexibility and free cash flow generation to offset dilution from equity compensation.

“Our fourth quarter and full-year results reflect the tenacity of the FedEx team to deliver steady adjusted operating income improvement year-over-year while navigating significant headwinds,” said Claude Russ, FedEx Corp. enterprise vice president, finance and interim chief financial officer. “As we look ahead, continued revenue and earnings growth momentum in our transition year positions us to unlock significant stockholder value through a resolute focus on driving unprecedented free cash flow growth.”

Outlook

For calendar year 2026, FedEx Corporation is forecasting:

Financial Metric(1)

Forecast Value

Additional Details & Exclusions

Revenue Growth

~11% YoY

Diluted EPS

(Continuing Operations)

$16.55 to $17.75

Prior to CY 2026 additional MTM adjustments for retirement plan accounting, and adjustments related to MTM accounting for the FedEx Freight investment and utilization of the FedEx Freight spin-off dividend.

Adjusted Diluted EPS

(Continuing Operations)

$16.90 to $18.10

Also excludes MTM adjustments for retirement plan accounting, estimated costs related to the spin-off of FedEx Freight and business optimization initiatives, asset impairment charges, and costs related to the fiscal year change.

Effective Tax Rate

(ETR)

~23%

Prior to CY 2026 additional MTM adjustments for retirement plan accounting, and adjustments related to MTM accounting for the FedEx Freight investment and utilization of the FedEx Freight spin-off dividend.

Pension Contributions

$475 million

Capital Spending

$3.9 billion

Prioritizes investments in network optimization and efficiency improvement, including fleet and facility modernization and automation.

These forecasts assume the company's current economic forecast and fuel price expectations, successful completion of planned stock repurchases, and no additional adverse economic, geopolitical, or international trade-related developments. FedEx’s ETR and EPS forecasts are based on current law and related regulations and guidance.

Corporate Overview

FedEx Corp. (NYSE: FDX) provides customers and businesses worldwide with a broad portfolio of transportation, e-commerce and business services. The company offers integrated business solutions utilizing its flexible, efficient, and intelligent global network. Consistently ranked among the world's most admired and trusted employers, FedEx inspires its employees to remain focused on safety, the highest ethical and professional standards and the needs of their customers and communities. FedEx is committed to connecting people and possibilities around the world responsibly and resourcefully, with a goal to achieve carbon-neutral operations by 2040. To learn more, please visit fedex.com/about.

Additional information and operating data are contained in the company’s annual report, Form 10-K, Form 10-Qs, Form 8-Ks and Statistical Books. These materials, as well as a webcast of the earnings release conference call to be held at 5:00 p.m. EDT on June 23, 2026, are available on the company’s website at investors.fedex.com. A replay of the conference call webcast will be posted on our website following the call.

The Investor Relations page of our website, investors.fedex.com, contains a significant amount of information about FedEx, including our SEC filings and financial and other information for investors. The information that we post on our Investor Relations website could be deemed to be material information. We encourage investors, the media and others interested in the company to visit this website from time to time, as information is updated and new information is posted.

Certain statements in this press release may be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act, such as statements regarding expected cost savings, the optimization of our network through Network 2.0, future financial targets, business strategies, management’s views with respect to future events and financial performance, and the assumptions underlying such expected cost savings, targets, strategies, and statements. Forward-looking statements include those preceded by, followed by or that include the words “will,” “may,” “could,” “would,” “should,” “believes,” “expects,” “forecasts,” “anticipates,” “plans,” “estimates,” “targets,” “projects,” “intends,” “determined to,” or similar expressions. Such forward-looking statements are subject to risks, uncertainties and other factors which could cause actual results to differ materially from historical experience or from future results expressed or implied by such forward-looking statements. Potential risks and uncertainties include, but are not limited to, economic conditions in the global markets in which we operate; uncertainty and additional volatility in the global trade environment; our ability to successfully implement our business strategies and global transformation program and network optimization initiatives, including Network 2.0 and Tricolor, effectively respond to changes in market dynamics, and achieve the anticipated benefits of such strategies and actions; our ability to achieve our cost reduction initiatives and financial performance goals, including our 2029 financial performance targets; our ability to achieve the anticipated benefits of the tax-free full separation of the FedEx Freight business into a new publicly traded company (the “FedEx Freight Spin-Off”); the possibility of disruption, including changes to existing business relationships, disputes, litigation, or unanticipated costs in connection with the FedEx Freight Spin-Off; the timing and amount of any costs or benefits or any specific outcome, transaction, or change (of which there can be no assurance), or the terms, timing, and structure thereof, related to our global transformation program and other ongoing reviews and initiatives; a significant data breach or other disruption to our technology infrastructure; damage to our reputation or loss of brand equity; our ability to meet our labor and purchased transportation needs while controlling related costs; failure of third-party service providers to perform as expected, or disruptions in our relationships with those providers or their provision of services to FedEx; the effect of any international conflicts or terrorist activities, including as a result of the current conflicts between Russia and Ukraine and in the Middle East; evolving or new U.S. domestic or international laws and government regulations, policies, and actions, including regulatory and/or legal compliance requirements that can affect our ability to efficiently or fully utilize our aircraft; changes in fuel prices or currency exchange rates, including significant increases in fuel prices as a result of the ongoing conflicts between Russia and Ukraine and in the Middle East and other geopolitical and regulatory developments; the effect of intense competition; our ability to match capacity to shifting volume levels; an increase in self-insurance accruals and expenses; loss or delay in the collection of accounts receivable, including those related to tariffs in light of recent judicial rulings; the effect of technology developments, including autonomous technology and artificial intelligence; failure to receive or collect expected insurance coverage; our ability to effectively operate, integrate, leverage, and grow acquired businesses and complete and realize the anticipated benefits of acquisitions and other strategic transactions including FedEx's investment in InPost, as a consortium member, and related commercial agreements; noncash impairment charges related to our goodwill and certain deferred tax assets; the future rate of e-commerce growth; future guidance, regulations, interpretations, challenges, or judicial decisions related to tariffs and our tax positions; labor-related disruptions; legal challenges or changes related to service providers contracted to conduct certain linehaul and pickup-and-delivery operations and the drivers providing services on their behalf and the coverage of U.S. employees at Federal Express Corporation under the Railway Labor Act of 1926, as amended; our ability to quickly and effectively restore operations following adverse weather or a localized disaster or disturbance in a key geography; the effects of a widespread outbreak of an illness or any other communicable disease or public health crises; any liability resulting from and the costs of defending against litigation, including refunds of tariffs; our ability to achieve or demonstrate progress on our goal of carbon-neutral operations by 2040; successful completion of stock repurchases; and other factors which can be found in FedEx Corp.’s and its subsidiaries’ press releases and FedEx Corp.’s filings with the SEC, including our Annual Report on Form 10-K for the fiscal year ended May 31, 2025 and subsequent Quarterly Reports on Form 10-Q. Any forward-looking statement speaks only as of the date on which it is made. We do not undertake or assume any obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.

The financial section of this release is provided on the company's website at investors.fedex.com

RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
TO GAAP FINANCIAL MEASURES

Fourth Quarter and Full-Year Fiscal 2026 and Fiscal 2025 Results

The company reports its financial results in accordance with accounting principles generally accepted in the United States (“GAAP” or “reported”). We have supplemented the reporting of our financial information determined in accordance with GAAP with certain non-GAAP (or “adjusted”) financial measures, including our adjusted fourth quarter and adjusted full-year fiscal 2026 and 2025 consolidated operating income and margin, net income, and diluted earnings per share, adjusted fourth quarter and adjusted full-year fiscal 2026 and 2025 Federal Express segment operating income and margin, and adjusted fourth quarter and adjusted full-year fiscal 2026 and 2025 FedEx Freight segment operating income and margin. These financial measures have been adjusted to exclude the impact of the following items (as applicable):

MTM adjustments for retirement plan accounting incurred in fiscal 2026 and 2025; Costs related to the spin-off of FedEx Freight incurred in fiscal 2026 and 2025; Business optimization costs incurred in fiscal 2026 and 2025; Costs related to the change in the company's fiscal year-end incurred in fiscal 2026; Asset impairment charges incurred in fiscal 2026 and fiscal 2025; and Adjustments related to international regulatory and legacy FedEx Ground legal matters incurred in fiscal 2026 and 2025. In December 2024, FedEx announced that its Board of Directors decided to pursue a full separation of FedEx Freight through the capital markets, creating a new publicly traded company. The transaction was implemented through the spin-off of shares of the new company to FedEx stockholders on June 1, 2026, and is intended to be tax-free for U.S. federal income tax purposes for FedEx stockholders. We incurred costs related to the spin-off of FedEx Freight in the fourth quarter and full-year fiscal 2026 and fiscal 2025. These costs were primarily related to professional fees.

Our business optimization costs relate to the following transformation initiatives aimed to improve long-term profitability, drive efficiency within and between our transportation segments, lower our overhead and support costs, and transform our digital capabilities: our Network 2.0 program, our international operational transformation programs, the Europe workforce reduction plan, and DRIVE initiatives commenced in prior years. We incurred costs related to these business optimization initiatives in the fourth quarter and full-year fiscal 2026 and fiscal 2025. These costs were primarily related to severance, incentive payments to our contracted service providers, and professional services.

In January 2025, FedEx announced that its Board of Directors approved a change in the company's fiscal year end from May 31 to December 31, which became effective June 1, 2026. The company incurred costs related to the fiscal year change in the fourth quarter and full-year fiscal 2026. These costs were primarily related to professional fees.

The charges incurred in fiscal year 2025 in connection with an international regulatory matter were extraordinary in nature and did not represent recurring expenses in our ordinary course of business. For full-year fiscal 2026 financial measures, this item was reduced by a gain recognized in fiscal 2026 in connection with the partial reversal of the associated loss accrual. In addition, there were charges incurred in prior fiscal years 2023 and 2024 in connection with a legacy FedEx Ground legal matter. For full-year 2025 financial measures, this item was reduced by a gain recognized in fiscal 2025 in connection with the partial reversal of the associated loss accrual.

Costs related to the spin-off of FedEx Freight, business optimization costs, costs related to the change in the company's fiscal year-end, asset impairment charges, adjustments related to international regulatory and legacy FedEx Ground legal matters, as well as MTM adjustments for retirement plan accounting, are excluded from our fourth quarter and full-year fiscal 2026 and 2025 consolidated, Federal Express segment, and FedEx Freight segment non-GAAP financial measures, as applicable, because they are unrelated to our core operating performance and/or to assist investors with assessing trends in our underlying businesses.

The income tax effect of these costs is calculated based upon the tax laws and statutory income tax rates applicable in the tax jurisdiction(s) of the underlying non-GAAP adjustment. The impact of these non-GAAP items on the company's effective tax rate represents the difference in the effective tax rate calculated with and without the non-GAAP adjustment.

We believe these adjusted financial measures facilitate analysis and comparisons of our ongoing business operations because they exclude items that may not be indicative of, or are unrelated to, the company's and our business segments' core operating performance, and may assist investors with comparisons to prior periods and assessing trends in our underlying businesses. These adjustments are consistent with how management views our businesses. Management uses these non-GAAP financial measures in making financial, operating and planning decisions and evaluating the company's and each business segments' ongoing performance.

Our non-GAAP financial measures are intended to supplement and should be read together with, and are not an alternative or substitute for, and should not be considered superior to, our reported financial results. Accordingly, users of our financial statements should not place undue reliance on these non-GAAP financial measures. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies' non-GAAP financial measures having the same or similar names. As required by SEC rules, the tables below present a reconciliation of our presented non-GAAP financial measures to the most directly comparable GAAP measures.

Calendar 2026 Forecast and Calendar 2025 Earnings Per Share and Effective Tax Rate

We have provided forecasts for calendar 2026 earnings per share and adjusted earnings per share, which are derived from calendar year 2025 preliminary recasted results from continuing operations, which reflects FedEx Freight as discontinued operations. Our calendar 2026 earnings per share and adjusted earnings per share forecast and calendar 2025 earnings per share and adjusted earnings per share are non-GAAP financial measures because they exclude calendar 2026 and 2025 MTM adjustments for retirement plan accounting, calendar 2026 estimated or calendar 2025 costs related to business optimization initiatives, calendar 2025 adjustments related to international regulatory and legacy FedEx Ground legal matters, calendar 2026 estimated costs related to the spin-off of FedEx Freight, calendar 2026 and 2025 asset impairment charges, and calendar 2026 and 2025 costs related to the fiscal year change. Our calendar 2026 ETR forecast and calendar 2025 ETR are non-GAAP financial measures because they exclude the effect of calendar 2026 and 2025 MTM adjustments for retirement plan accounting, and adjustments related to the MTM accounting for the FedEx Freight investment and the utilization of the FedEx Freight spin-off dividend.

We have provided these non-GAAP financial measures for the same reasons that were outlined above for historical non-GAAP measures. Actual and estimated costs related to business optimization initiatives, actual and estimated costs related to the spin-off of FedEx Freight, asset impairment charges, and costs related to the fiscal year change, as well as MTM adjustments for retirement plan accounting, are excluded from our calendar 2026 and 2025 earnings per share forecasts for the same reasons described above for historical non-GAAP measures.

We are unable to predict the amount of additional calendar 2026 MTM adjustments for retirement plan accounting, and adjustments related to MTM accounting for the FedEx Freight investment and utilization of the FedEx Freight spin-off dividend, as they are significantly affected by changes in interest rates and the financial markets, so such additional adjustments are not included in our calendar 2026 earnings per share and ETR forecasts. For this reason, a full reconciliation of our calendar 2026 earnings per share and ETR forecasts to the most directly comparable GAAP measures is impracticable. It is reasonably possible, however, that our additional calendar 2026 MTM adjustments for retirement plan accounting, and adjustments related to MTM accounting for the FedEx Freight investment and utilization of the FedEx Freight spin-off dividend, could have a material effect on our calendar 2026 consolidated financial results and ETR.

The table included below titled “Calendar 2026 Forecasted Diluted Earnings Per Share from Continuing Operations” outlines the effects of the items that are excluded from our calendar 2026 earnings per share forecast, other than the additional MTM adjustments for retirement plan accounting, and adjustments related to MTM accounting for the FedEx Freight investment and utilization of the FedEx Freight spin-off dividend. The table included below titled “Calendar 2025 Diluted Earnings Per Share from Continuing Operations” outlines the effects of the items that are excluded from our calendar 2025 earnings per share.

Fourth Quarter Fiscal 2026

FedEx Corporation

  Diluted
Earnings
Per Share

Operating

Income
Taxes1

Net
Income2

Dollars in millions, except EPS

Income

Margin

GAAP measure

$

1,551

6.2

%

$

510

$

1,598

$

6.60

MTM retirement plans accounting adjustment3

—

—

(150

)

(497

)

(2.05

)

FedEx Freight spin-off costs4

298

1.2

%

62

238

0.97

Business optimization costs5

204

0.8

%

45

159

0.66

Asset impairment charges6

23

0.1

%

5

18

0.07

Fiscal year change costs5

13

0.1

%

3

10

0.04

Non-GAAP measure

$

2,089

8.4

%

$

475

$

1,526

$

6.31

Federal Express Segment

  Operating

Dollars in millions

Income

Margin

GAAP measure

$

1,651

7.7

%

Business optimization costs

208

1.0

%

FedEx Freight spin-off costs

26

0.1

%

Asset impairment charges

23

0.1

%

Fiscal year change costs

6

—

Non-GAAP measure

$

1,914

8.9

%

FedEx Freight Segment

  Operating

Dollars in millions

Income

Margin

GAAP measure

$

158

6.6

%

FedEx Freight spin-off costs

205

8.5

%

Non-GAAP measure

$

363

15.1

%

Full-Year Fiscal 2026

FedEx Corporation

  Diluted
Earnings
Per Share

Operating

Income
Taxes1

Net
Income2

Dollars in millions, except EPS

Income

Margin

GAAP measure

$

5,463

5.8

%

$

1,360

$

4,433

$

18.55

MTM retirement plans accounting adjustment3

—

—

(150

)

(497

)

(2.08

)

FedEx Freight spin-off costs4

738

0.8

%

155

589

2.46

Business optimization costs5

366

0.4

%

81

285

1.19

Fiscal year change costs5

33

—

7

26

0.11

Asset impairment charges6

23

—

5

18

0.08

International regulatory and legacy FedEx Ground legal matters6

(12

)

—

4

(16

)

(0.07

)

Non-GAAP measure

$

6,611

7.0

%

$

1,462

$

4,838

$

20.24

Federal Express Segment

  Operating

Dollars in millions

Income

Margin

GAAP measure

$

5,912

7.2

%

Business optimization costs

303

0.4

%

FedEx Freight spin-off costs

70

0.1

%

Asset impairment charges

23

—

Fiscal year change costs

22

—

International regulatory and legacy FedEx Ground legal matters

(12

)

—

Non-GAAP measure

$

6,318

7.7

%

FedEx Freight Segment

  Operating

Dollars in millions

Income

  Margin

GAAP measure

$

616

  7.0

%

FedEx Freight spin-off costs

492

  5.6

%

Non-GAAP measure

$

1,108

  12.6

%

Fourth Quarter Fiscal 2025

FedEx Corporation

  Diluted
Earnings
Per Share

Operating

Income
Taxes1

Net
Income2

Dollars in millions, except EPS

Income

Margin

GAAP measure

$

1,793

8.1

%

$

575

$

1,648

$

6.88

MTM retirement plans accounting adjustment3

—

—

(125

)

(390

)

(1.63

)

Business optimization costs5

123

0.6

%

29

93

0.39

International regulatory and legacy FedEx Ground legal matters6

50

0.2

%

(11

)

61

0.26

FedEx Freight spin-off costs4

33

0.1

%

7

27

0.11

Asset impairment charges6

21

0.1

%

5

16

0.07

Non-GAAP measure

$

2,020

9.1

%

$

480

$

1,455

$

6.07

Federal Express Segment

  Operating

Dollars in millions

Income

Margin

GAAP measure

$

1,586

8.4

%

International regulatory and legacy FedEx Ground legal matters

50

0.3

%

Business optimization costs

43

0.2

%

Asset impairment charges

21

0.1

%

Non-GAAP measure

$

1,700

9.0

%

Full-Year Fiscal 2025

FedEx Corporation

Diluted
Earnings
Per Share

Operating

Income
Taxes1

Net
Income2

Dollars in millions, except EPS

Income

Margin

GAAP measure

$

5,217

5.9

%

$

1,349

$

4,092

$

16.81

MTM retirement plans accounting adjustment3

—

—

(125

)

(390

)

(1.60

)

Business optimization costs5

756

0.9

%

178

577

2.37

International regulatory and legacy FedEx Ground legal matters6

88

0.1

%

(2

)

90

0.37

FedEx Freight spin-off costs4

38

—

13

44

0.18

Asset impairment charges6

21

—

5

16

0.06

Non-GAAP measure

$

6,120

7.0

%

$

1,418

$

4,429

$

18.19

Federal Express Segment

  Operating

Dollars in millions

Income

Margin

GAAP measure

$

4,885

6.5

%

Business optimization costs

384

0.5

%

International regulatory and legacy FedEx Ground legal matters

88

0.1

%

Asset impairment charges

21

—

Non-GAAP measure

$

5,378

7.1

%

Calendar 2026 Forecasted Diluted Earnings Per Share from Continuing Operations

  Diluted
Earnings Per
Share from
Continuing
Operations 

Dollars in millions, except EPS

Adjustments

Earnings per diluted share from continuing operations (GAAP)7

$16.55 to $17.75

MTM retirement plans accounting adjustment

($639

)

Business optimization costs

660

FedEx Freight spin-off costs

50

Aircraft impairment charges

23

Fiscal year change costs

19

Total adjustments

$113

Income tax effect1

(23

)

Net of tax effect

$90

0.35

Diluted earnings per share from continuing operations with adjustments (non-GAAP)7

$16.90 to $18.10

Calendar 2025 Diluted Earnings Per Share from Continuing Operations

  Diluted
Earnings Per
Share from
Continuing
Operations

Dollars in millions, except EPS

Adjustments

Earnings per diluted share from continuing operations (GAAP)8

$14.80

MTM retirement plans accounting adjustment3

($418

)

Business optimization costs5

344

International regulatory and legacy FedEx Ground legal matter6

76

Aircraft impairment charges6

21

Fiscal year change costs5

14

Total adjustments

$37

Income tax effect1

13

Net of tax effect

$50

0.20

Diluted earnings per share from continuing operations with adjustments (non-GAAP)8

$15.00

Notes:

1

Income taxes are based on the approximate statutory tax rates applicable to each transaction.

2

Effect of “total other (expense) income” on net income amount not shown.

3

These adjustments reflect the May 31 fiscal year-end adjustment to the valuation of the company's defined benefit pension and other postretirement plans, as recorded.

4

These expenses were recognized at Federal Express, FedEx Freight, and Corporate, other, and eliminations.

5

These expenses were recognized at Federal Express and Corporate, other, and eliminations.

6

These expenses were recognized at Federal Express.

7

Additional MTM adjustments for retirement plan accounting for calendar 2026, and adjustments related to MTM accounting for the FedEx Freight investment and the utilization of the FedEx Freight spin-off dividend, which are impracticable to calculate at this time, are excluded.

8

The baseline for the calendar 2026 financial metrics is calendar year 2025 preliminary recasted results from continuing operations, which reflects FedEx Freight as discontinued operations. FedEx expects to file a Current Report on Form 8-K including recasted and resegmented financial statements for calendar 2024 and 2025, reflecting FedEx Freight as discontinued operations, by mid-August 2026.

More News From FedEx Corp.

Chief Executive Raj Subramaniam said FedEx's growth strategy is working, and with the spinoff of its freight division, the company is positioned to further optimize its network and lower costs.

FedEx (FDX - Free Report) came out with quarterly earnings of $6.31 per share, beating the Zacks Consensus Estimate of $5.91 per share. This compares to earnings of $6.07 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +6.81%. A quarter ago, it was expected that this package delivery company would post earnings of $4.14 per share when it actually produced earnings of $5.25, delivering a surprise of +26.81%.

Over the last four quarters, the company has surpassed consensus EPS estimates four times.

FedEx, which belongs to the Zacks Transportation - Air Freight and Cargo industry, posted revenues of $25.01 billion for the quarter ended May 2026, surpassing the Zacks Consensus Estimate by 3.42%. This compares to year-ago revenues of $22.22 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 13.8% since the beginning of the year versus the S&P 500's gain of 9.2%.

What's Next for FedEx?While FedEx has outperformed 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 $4.49 on $23.72 billion in revenues for the coming quarter and $21.59 on $97.27 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 43% 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, Marten Transport, Ltd. (MRTN - Free Report) , has yet to report results for the quarter ended June 2026.

This company is expected to post quarterly earnings of $0.07 per share in its upcoming report, which represents a year-over-year change of -22.2%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

Marten Transport, Ltd.'s revenues are expected to be $225 million, down 2.1% from the year-ago quarter.

FedEx Corporation (FDX) Q4 2026 Earnings Call Transcript

FedEx Corp (FDX) Q4 2026 Earnings Call Highlights: Record Margins and Strategic Growth Propel Strong Performance FedEx Corp (FDX) reports robust revenue growth and highest operating margin in four years, despite challenges from fuel costs and global trade policies. Summary

Revenue Growth: Full-year revenue increased by 8%, with a 13% increase in Q4.Adjusted Operating Income: Full-year adjusted operating income grew by 8%, with a 3% increase in Q4.Adjusted Operating Margin: Achieved a 7.7% adjusted operating margin, the highest in four years.FEC Revenue and Income: FEC revenue grew by 14% in Q4, with a 13% increase in adjusted operating income.Adjusted EPS: Delivered $20.24 in adjusted EPS for FY26, with $6.31 in Q4.Free Cash Flow: Achieved $4.7 billion in adjusted free cash flow for FY26.CapEx: FY26 CapEx was $3.8 billion, representing 4% of revenue.Healthcare Transportation Revenue: Exited FY26 with nearly $10 billion in healthcare transportation revenue.International Export Package Volumes: Increased by 5% year-over-year in Q4.US Domestic Volume: Grew by 3% year-over-year in Q4.Yield Growth: FEC package yield increased by 11% in Q4.CY26 Revenue Outlook: Expected revenue growth of approximately 11% for CY26.CY26 Adjusted EPS Outlook: Expected range of $16.90 to $18.10 per diluted share.

Release Date: June 23, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points FedEx Corp FDX exceeded its $1 billion transformation-related savings target for FY26, demonstrating effective cost management.The company reported a 13% increase in Q4 revenue, driven by yield and volume strength across almost all services.FedEx Corp (FDX) achieved a 7.7% adjusted operating margin, the highest in four years, reflecting structural improvements.The spin-off of FedEx Freight positions both companies for success as separate focused industry leaders.FedEx Corp (FDX) reported strong free cash flow and adjusted earnings per share growth for seven consecutive quarters. Negative Points FedEx Freight's adjusted operating income declined, impacting overall financial results.The grounding of the MD-11 aircraft fleet posed significant operational challenges.Higher fuel costs and variable compensation expenses offset revenue gains in Q4.The company faces ongoing headwinds from global trade policy changes and geopolitical unrest.FedEx Corp (FDX) anticipates a low-single-digit volume decline within ground economy services. Q & A Highlights Q: Can you discuss the factors contributing to the expected acceleration in profitability for the remainder of the calendar year?
A: Claude Russ, Interim CFO, explained that the variable compensation headwind seen in Q4 FY26 will dissipate, becoming only a $100 million headwind in the transition year. Additionally, the seasonality will shift, with Q4 being the strongest seasonal quarter. The ongoing base business momentum, both in revenue growth and cost management, supports the expected 19% profit growth and 20% EPS growth.

Q: How much margin improvement is expected for FedEx Express Corporation (FEC) in calendar year '26, and what is the plan for stranded costs?
A: Claude Russ stated that margin improvement is expected year-over-year in both the calendar year and the transition period, with more improvement in the transition year due to variable comp headwinds in the first five months. Regarding stranded costs, $250 million has already been conveyed, and $100 million more is expected to be removed in CY26, with the remaining costs mitigated by CY27.

Q: Can you clarify the impact of fuel on the quarter and how you view the fuel dynamic going forward?
A: Claude Russ noted that the fuel surcharge resets weekly and effectively offsets increased expenses from higher fuel prices. The increased revenue from fuel surcharges was able to materially offset the increased fuel expenses, resulting in no material impact on profit. Brie Carere added that there has been no demand destruction due to elevated fuel prices.

Q: What is driving the momentum in the B2B segment, and how significant is the impact of AI-driven CapEx spending?
A: Brie Carere highlighted that the B2B momentum is driven by profitable market share gains and a focus on core B2B verticals. The quarter saw improvement across all key verticals, with AI and data center wins contributing, especially from Asia. The growth is broad-based, with some inventory restocking also playing a role.

Q: How is FedEx managing its SMB strategy in light of competition from Amazon's third-party logistics expansion?
A: Brie Carere emphasized FedEx's strong SMB performance, with double-digit growth and high customer loyalty. FedEx focuses on B2B and high-value B2C, offering a global network and superior visibility. The company maintains goal congruency with customers, supporting their growth while enhancing FedEx's profitability.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

Key Takeaways FedEx beat fourth-quarter estimates, with adjusted EPS of $6.31 and revenues of $25.01 billion.FDX expects about 11% revenue growth and adjusted EPS of $16.90-$18.10 in 2026.FedEx plans up to $1 billion in share buybacks after generating $4.7 billion in adjusted free cash flow. FedEx Corporation (FDX - Free Report) used its fourth-quarter fiscal 2026 call to press a forward-looking message. The company said premium revenue mix, network changes and structural cost actions are now producing stronger earnings power even as the reporting calendar shifts and FedEx Freight moves out of continuing operations.

That framing mattered as FedEx posted adjusted earnings per share of $6.31, which beat the Zacks Consensus Estimate of $5.91, delivering a surprise of 6.8%. The company reported revenues of $25.01 billion, surpassing the Zacks Consensus Estimate of $24.18 billion by 3.4%.

FDX Resets the Story Around 2026President and CEO Rajesh Subramaniam said the central takeaway from the fiscal fourth quarter was momentum, arguing that FedEx is now growing in higher-yielding parts of the market while pulling through transformation savings. He tied that progress to Network 2.0, Tricolor and European improvement efforts.

The company introduced a calendar 2026 outlook for continuing operations that calls for about 11% revenue growth and adjusted EPS of $16.90 to $18.10. Management also said the June-through-December transition period implies roughly 20% adjusted EPS growth year over year.

That guidance is now the lens that management wants investors to use. Claude Russ, enterprise vice president and interim CFO, said the midpoint assumes $5.8 billion of adjusted operating income and reflects continuing demand in premium B2B and high-value B2C services.

FedEx Leans Harder Into Premium VerticalsChief customer officer Brie Carere described the quarter as further proof that FedEx’s commercial strategy is centered on revenue quality rather than broad volume chasing. She said B2B services drove most of the quarterly revenue growth, with health care, automotive, aerospace, and data center demand standing out.

That emphasis showed up in operating data. Federal Express segment revenues rose 14% in the quarter, with U.S. domestic package revenues up 13% and international export package revenues up 15%, while composite package yield climbed 11%. International domestic volume, however, fell 9% as the company continued to favor higher-yielding cross-border traffic in Europe.

Carere also highlighted nearly $10 billion in health care transportation revenues exiting fiscal 2026 and pointed to double-digit growth tied to AI and data center-related shipments. She presented that business as a broad ecosystem opportunity rather than a narrow vertical.

FDX Says Cost Actions Are Gaining TractionSubramaniam said FedEx exceeded its fiscal 2026 goal of $1 billion in transformation-related savings, calling that a key proof point behind the quarter. Russ added that structural cost reductions continued to offset higher wage rates, purchased transportation and direct trade-related costs.

The quarter still showed some friction. Consolidated adjusted operating margin was 8.4%, down from 9.1% a year earlier, as fuel expense surged 66% and variable incentive compensation moved higher. Management stressed that fuel surcharge revenues largely offset the profit impact of higher fuel costs.

FedEx also continues to reshape its asset base. Fourth-quarter results included a $23 million impairment tied to the permanent retirement of 10 aircraft, part of a multiyear fleet reduction and modernization strategy meant to better align air capacity with demand.

FedEx Turns Stronger Cash Flow Into FlexibilityRuss used the call to underscore free cash flow as a major part of the equity story. FedEx generated $4.7 billion in adjusted free cash flow in fiscal 2026, while capital spending fell to $3.8 billion, or 4% of revenue, the lowest annual capital intensity in the company’s history.

The balance sheet also shifted with the FedEx Freight separation. Ending cash was $13.3 billion, including a $4.1 billion dividend tied to the spin-off, though management noted that about $800 million of that cash balance reflects IEEPA tariff refunds being held for customers.

Against that backdrop, FedEx said it plans to repurchase up to $1 billion of shares during the rest of calendar 2026 and has already lifted its dividend by 5%, adjusted for the spin-off. Russ said capital allocation will remain balanced as the company also funds pension obligations and strategic investments.

FDX Faces Detailed Questions on Margins and CadenceAnalysts pressed management on why fourth-quarter profit flow-through looked more muted than the transition-year outlook suggests. Russ told Wells Fargo and Bernstein analysts that variable compensation was a large near-term headwind and said seasonality should favor stronger profit concentration in the fourth-quarter results.

Questions also centered on stranded costs after the FedEx Freight separation. Russ said FedEx expects to remove about $100 million of those costs in calendar 2026 and does not expect stranded costs to remain a discussion point beyond the exit rate of 2027.

On the demand side, a Goldman Sachs analyst asked whether B2B strength reflected macro factors or execution in targeted verticals. Carere’s response leaned heavily toward execution, saying the gains were broad across the company’s four key verticals, with AI and data center wins adding to, rather than replacing, wider commercial momentum.

FedEx Leaves the Call Focused on ExecutionThe closing message from management was notably consistent. Subramaniam returned to the idea that FedEx is becoming more concentrated on premium B2B and high-value B2C traffic while using network and organizational changes to lower the cost to serve.

That posture came through in both prepared remarks and Q&A. Management sounded confident on pricing, network utilization, international share gains and free cash flow, while treating the fiscal-year transition, pilot contract costs and stranded costs as manageable items within a broader earnings expansion story.

Zacks Signals for FDX After the QuarterFDX carries a Zacks Rank #3 (Hold), along with a Value Score of B, Growth Score of C, Momentum Score of C and VGM Score of B. Under Zacks’ framework, the rank remains the primary signal, while style scores help refine the outlook, with A and B grades generally indicating better expected near-term performance than lower grades.

The Value Score and VGM Score of B suggest relatively stronger broad style characteristics than its Growth and Momentum scores imply, but a Zacks Rank #3 points to a more balanced near-term setup than a top-ranked stock. That rank can also change as earnings estimate revisions adjust after the just-reported results. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.