FedEx Corporation (FDX)

FedEx reported on 28 October that revenue rose 12 percent to $22.9 billion in the quarter to 30 September 1. Operating income rose to $1.07 billion from $0.97 billion a year earlier 1. Net income fell to $290 million from $645 million, mostly because of a $1.2 billion accounting loss on the stake it kept in FedEx Freight 12.

The company credited higher base prices per package, more packages and continued savings from its cost programs 1. Express International grew fastest, with revenue up 17 percent and freight revenue up 28 percent, while the U.S. business grew 10 percent 1. Chief executive Raj Subramaniam said FedEx is "winning across high-value market segments while we optimize our network" 1.

FedEx raised its outlook for calendar 2026 to revenue growth of about 12 percent, from about 11 percent 1. A new finance chief, Jamere Jackson from AutoZone, starts on 30 November 5. The open questions are the holiday peak and the tariff refunds, of which FedEx held about $2.7 billion for customers at the end of September 1.

Federal Express began operating in 1973, delivering small parcels and documents faster than the postal service 316. Founder Fred Smith chose the name so a start-up "with a future far from assured" would sound big and important, the Associated Press reported 16. In 2016 FedEx bought TNT Express, the largest acquisition in its history, for its lower-cost road networks in Europe 10.

In fiscal 2020, the year to May 2020, revenue fell 1 percent to $69.2 billion 10. The annual report blamed the end of business from a large customer and the economic shock of the COVID-19 pandemic 10. Home deliveries at FedEx Ground grew sharply as stay-at-home orders spread 10.

The pandemic then lifted the business: revenue rose 21 percent to $84.0 billion in fiscal 2021 as online shopping surged 11. Net income reached $5.2 billion, from $1.3 billion a year earlier 11. Revenue climbed another 11 percent to $93.5 billion in fiscal 2022, helped by price increases and higher fuel surcharges 12.

Raj Subramaniam became chief executive on 1 June 2022, and Smith stayed on as executive chairman 1216. As demand cooled, revenue fell 4 percent to $90.2 billion in fiscal 2023, on lower volumes in every transportation business 13. In that year FedEx launched DRIVE, a program to cut costs and raise long-term profitability 14.

In fiscal 2024 revenue slipped 3 percent to $87.7 billion, yet net income rose to $4.3 billion from $4.0 billion 14. On 1 June 2024 FedEx Ground and FedEx Corporate Services were merged into Federal Express, a plan called one FedEx 3. Under Network 2.0, separate ground and express pickup and delivery operations began folding into one, starting in Canada in April 2024 14.

Revenue was flat at $87.9 billion in fiscal 2025 15. Operating income fell, mainly on fewer shipments at FedEx Freight and the end of a contract to fly mail for the U.S. Postal Service, which expired on 29 September 2024 15. In December 2024 the board decided to separate FedEx Freight, and in January 2025 it moved the fiscal year end to 31 December 3.

Smith died on 21 June 2025, and the board later made R. Brad Martin, its vice chairman, executive chairman and chair 9. In November 2025 the FAA grounded every Boeing MD-11 over a potentially unsafe condition, disrupting FedEx's air network until most of its fleet returned by the end of September 2026 32. Fiscal 2026 revenue rose 8 percent to $94.7 billion, and net income to $4.4 billion 4.

The spin-off came on 1 June 2026: holders received one FedEx Freight share for every two FedEx shares, and FedEx kept 19.9 percent 3. FedEx Freight paid FedEx a cash dividend of about $4.1 billion, which went toward buying back about $4.9 billion of FedEx's bonds in July 3.

Express U.S. Domestic

The largest business picks up and delivers packages and freight across the United States, from FedEx First Overnight to FedEx Ground and FedEx Home Delivery 3. In the third quarter it brought in $14.7 billion, about 64 percent of revenue (computed), at an operating margin of 6.4 percent 1. It handled about 14.4 million packages a day, at an average $15.32 each 1.

Ground is the bulk of it: U.S. ground packages brought in $9.5 billion in the quarter at $12.89 each, against $28.18 for a priority package 1. FedEx has announced that its parcel rates rise an average 5.9 percent on 4 January 2027 1. Saturday delivery reaches 99 percent of the U.S. population and Sunday delivery nearly two-thirds 3.

Express International

Express International carries packages and freight to more than 220 countries and territories, with services from International First to the slower International Economy 3. It also delivers inside countries such as Canada, France, the United Kingdom and India, and runs FedEx Logistics, the customs brokerage and forwarding arm 3. Third-quarter revenue rose 17 percent to $7.5 billion, but the operating margin was only 2.9 percent 1.

Air freight is the growth engine: international freight revenue rose 28 percent and daily pounds 15 percent 1. Volumes inside other countries fell 11 percent, while the revenue per package there rose 12 percent 1. Under a plan called Tricolor, FedEx is redesigning its international air network around the premium global freight market 3.

FedEx Office, Dataworks and a sale

FedEx Office runs about 2,000 stores for printing, packing and shipping, including locations inside Walmart stores, with about 12,000 employees 3. FedEx Dataworks, about 200 people in Memphis, turns network data into products such as FedEx Tracking+ and FedEx Returns+, announced for large retailers in January 2026 3. FedEx sold FedEx Supply Chain, its warehousing and fulfillment arm, to CMA CGM Group on 1 October 2026 for about $1.4 billion 1.

Planes, hubs and trucks

Federal Express flew 700 aircraft at the end of May 2026, including 152 Boeing 767 freighters, 59 Boeing 777 freighters and 29 MD-11s 3. Its main hub at Memphis can sort 484,000 packages and documents an hour, with a second national hub at Indianapolis 3. It runs about 82,000 vehicles of its own, while contractors drive about 100,000 more 3.

FedEx has 36 more aircraft on order for delivery through 2030, among them 10 Boeing 777 freighters 3. It retired five MD-11s in fiscal 2026 and plans to retire its remaining three-engine aircraft by 2032 3. Its major international hubs include Paris, Cologne, Guangzhou, Osaka and Liege 3.

People

Raj Subramaniam, chief executive since June 2022, has worked at Federal Express since 1991 3. R. Brad Martin is executive chairman, Scott Ray runs U.S. and Canada operations, and Richard W. Smith runs the airline and international operations 3. Claude Russ is interim finance chief until Jamere Jackson, finance chief of AutoZone since 2021, arrives on 30 November 5.

FedEx employed about 300,000 full-time and 230,000 part-time people on 31 May 2026, the day before FedEx Freight left 3. Turnover among part-time staff, mostly package handlers, was 78 percent in fiscal 2026, against 18 percent for full-time staff 3. A new pilots' contract took effect on 29 June 2026, with a 40 percent initial raise and a one-time $625 million payment 2.

Rivals

In the United States FedEx competes mainly with UPS, the U.S. Postal Service and regional carriers, and abroad with DHL, UPS, DPD and GLS 3. Amazon is both a customer and a rival, with its own network of hubs, aircraft and vehicles 3. UPS reported third-quarter revenue of $22.9 billion on 27 October, the same rounded figure as FedEx 181.

Problems

After the Supreme Court struck down tariffs imposed under emergency powers on 20 February 2026, FedEx sued for refunds and began filing claims with U.S. Customs 3. Fourteen class actions seek those refunds from FedEx, thirteen of them combined into one case in a Tennessee federal court 2. FedEx also faces suits claiming it employs its contractors' drivers, and wage-and-hour class actions 3.

In Europe the free emission allowances for flights end by the close of 2026, and FedEx expects compliance with the carbon schemes to raise its operating costs 3.

The umbrella, in words

The brands are FedEx, FedEx Express, FedEx Ground, FedEx Office, FedEx Logistics and FedEx Dataworks, and FedEx licenses the FedEx Freight name to the company it spun off 3. The subsidiaries exhibit lists the significant subsidiaries, each wholly owned, such as Federal Express Corporation, FedEx Office and Print Services and FedEx Logistics, and leaves smaller ones out 17.

FedEx owns 19.9 percent of FedEx Freight Holding Company, and expects to sell all of it within 24 months of the spin-off, subject to market conditions 3. It also owns 37 percent of Lux TopCo, the holding company of InPost, a Polish parcel-locker operator, bought for €2.2 billion on 24 September 2026 28. Advent International agreed to take another 37 percent, A&R, the vehicle of InPost's chief executive Rafał Brzoska, 16 percent and PPF 10 percent, as reported 8.

Its Memphis hub is leased from the Memphis-Shelby County Airport Authority until 2036 3. The proxy lists Vanguard Capital Management at 6.81 percent, BlackRock at 6.55 percent, the estate of Fred Smith at 5.96 percent and PRIMECAP at 5.04 percent, each from its latest filing 9.

For calendar 2026 FedEx now expects revenue growth of about 12 percent and capital spending of $3.9 billion 1. It plans aircraft spending of about $1.0 billion this year, and expects $1.0 billion of structural cost cuts from Network 2.0 and one FedEx by the end of 2026 2.

At its investor day on 12 February 2026, FedEx set 2029 targets of about $98 billion of revenue, about $8 billion of operating income and an operating margin of about 8 percent 7. It aims for a 10 percent margin in the U.S. business and 8 percent abroad 7. The targets leave out any contribution from InPost 7.

Network 2.0 is complete in Canada, and the company expects to finish the U.S. rollout by the end of 2027 3. It had reached about 360 U.S. locations by the end of May 2026 3. A program begun in January 2026 to rework domestic operations in some countries abroad is expected to cost $225 million to $325 million through 2028 3.

The reports change with the calendar: a transition report on Form 10-K will cover June to December 2026, and the first calendar fiscal year ends on 31 December 2027 3. The next annual meeting is set for 26 April 2027 6. A $5.0 billion buyback authorization from July 2026 had $4.3 billion left at the end of September 31.

FedEx expects to sell its remaining FedEx Freight shares within 24 months of the 1 June 2026 spin-off, and to pass tariff refunds on to customers as they arrive 3. The pilots' contract becomes open to renegotiation in December 2030, and the next list rate rise, an average 5.9 percent, takes effect on 4 January 2027 21.

The quarterly report says the MD-11 grounding is not expected to hurt results after the September quarter, with most of that fleet back in service 2.

Past

FedEx's revenue grew from $60 billion in fiscal 2017 to $95 billion in fiscal 2026, up 5.1% a year over the ten filed years; it rose in 6 of 9 years, with the deepest fall of 6% from fiscal 2022 to fiscal 2024, and net income was positive in all 10 of those years. Over the three fiscal years to 2026, the diluted share count shrank about 2.3% a year, and dividends and buybacks returned about 42% of operating cash flow. The grade's past tense reads 7.2 of 10. 12

Present

In its latest annual figures on file for the fiscal year ended 2026-05-31, FedEx reported revenue of $95 billion and a profit of $4.4 billion. The company earned about 14 cents of profit for every dollar of shareholders' money, owed about 68 cents per dollar of assets, and its share count shrank 1.6% over the year. FedEx's revenue of $95 billion in fiscal 2026 ranks in the top 6% by size among its industry family; a net margin of 4.7% ranks in the bottom 29%; revenue growth of 1.7% a year over the last three filed years ranks in the bottom 38%. The chief executive is Subramaniam, Rajesh, filing under that title since 2022-07-01, 4.3 years; the 22 officers and directors filing in the last fifteen months have been on the record a median of 4.1 years; 16 officer or director changes were reported on Form 8-K since 2023-10-21, against the 22 people in charge now. The grade's present tense reads 5.6 of 10. 21

Future

A quarterly report for the quarter ending 2026-08-31 is due by 2026-10-10, under the SEC's rules for large accelerated filers. The annual report for the fiscal year ending 2027-05-31 is due by 2027-07-30. Revenue grew 1.7% a year over the last three filed years against 5.1% over all 10, slowing, while the newest year grew 7.7% and capital spending shrank 14.9% a year. Cash of $13 billion against debt of $23 billion leaves negative 10.3% of assets as net cash; cash from operations less capital spending is 5.4% of revenue. The grade's future tense reads 4.3 of 10. 312

How the company operates

FedEx is classed by the SEC under Air Courier Services, industry code 4513. FedEx reported two lines of business in fiscal 2025: Federal Express at $75 billion and FedEx Freight at $8.9 billion, with one of two growing in the latest filed year and the largest line making up 89% of revenue. By geography in fiscal 2026, the United States accounted for 72% of revenue and outside the United States 28%. 21

New moves

On 2026-09-29, FedEx filed Form 8-K reporting a shareholder vote and another event the company chose to report. On 2026-09-11, FedEx filed two shelf offerings, securities sold off a shelf registration. On 2026-06-01, FedEx filed Form 8-K reporting a major agreement signed, a purchase or sale of a business completed, an officer or director change, and another event. The desk's studies of adjacent events note that on 2026-10-15 and 2026-10-14, attacks damaged Aramco's headquarters in the region where FedEx operates internationally. 34