FedEx Corporation (NYSE: FDX): Corporate Profile & Financials
Source: FedEx Corporation Form 10-K Fiscal Year Ended May 31, 2026
⚡ Quick Facts: Company Snapshot
| Metric / Attribute | Disclosed Corporate Detail |
|---|---|
| Official Company Name | FedEx Corporation |
| Trading Symbol & Primary Exchange | NYSE: FDX |
| State of Incorporation | Delaware |
| Date of Incorporation | October 2, 1997 |
| Corporate Headquarters | 942 South Shady Grove Road, Memphis, Tennessee 38120 |
| Telephone Number | (901) 818-7500 |
| IRS Employer Identification No. | 62-1721435 |
| SEC Commission File Number | 1-15829 |
| Founder | Frederick W. Smith |
| Global Operating Workforce | Approximately 530,000 permanent employees (300,000 full-time; 230,000 part-time) |
| Contracted Service Providers | Approximately 5,300 independent small businesses |
| Total Global Aircraft Fleet | 700 aircraft (697 owned, 3 leased) |
| Global Motorized Vehicle Fleet | Over 180,000 motorized vehicles (approx. 82,000 company-operated; approx. 100,000 service-provider owned/leased) |
| Global Drop-Off Locations | Approximately 84,000 drop-off locations |
| Primary Global Air Hub | Memphis International Airport (Memphis, Tennessee) |
| Global Service Footprint | More than 220 countries and territories; connects >99% of global GDP |
| Daily Shipment Volume | More than 18 million shipments per day across the global network |
| Common Stock Outstanding | 236,581,188 shares (as of July 16, 2026) |
| Fiscal Year-End Change | Changed from May 31 to December 31, effective June 1, 2026 |
| Major Pilot Labor Representation | Air Line Pilots Association, International (ALPA) under the Railway Labor Act |
🏢 The Corporate Identity: Who They Are & Where They Came From
The Big Picture
FedEx Corporation (“FedEx”) stands as a premier global transportation, e-commerce, and business services holding enterprise. Operating an unmatched multi-modal transit network, FedEx links more than 220 countries and territories, reaching geographies that collectively generate more than 99% of the world’s gross domestic product. The company’s core operational paradigm blends expansive physical infrastructure—spanning hundreds of cargo aircraft, hundreds of thousands of delivery vehicles, and thousands of sortation hubs—with digital intelligence engines designed to orchestrate complex global supply chains.
Every business day, the enterprise facilitates the movement of commerce by handling more than 18 million shipments across its air, surface, and ocean freight channels. FedEx provides integrated business solutions utilizing a flexible, efficient, and intelligent global network. Built around the foundational operational mantra of “Safety Above All,” the enterprise delivers comprehensive time-definite express transport, day-definite ground parcel logistics, freight consolidation, trade facilitation, customs brokerage, and digital supply chain visibility.
- 18+ Million Shipments: Handled daily across the enterprise’s integrated physical and technology networks worldwide.
- 99% Global Economic Reach: Direct service footprints covering economies representing more than 99% of world GDP.
- Unified Brand Strategy: Transitioning from historically segmented operating entities into a synchronized network running on modern digital architectures.
The Founders & Their Legacy
The enterprise traces its genesis to the seminal express delivery concept conceived by its late founder and long-time Chairman and Chief Executive Officer, Frederick W. Smith. Pioneering the modern express transportation industry in 1973 through the launch of Federal Express, Smith established an innovative hub-and-spoke transportation architecture that revolutionized global commerce by making overnight package delivery reliable and ubiquitous.
A core philosophical pillar established at the company’s inception was the People-Service-Profit (“P-S-P”) framework, which asserts that by taking care of team members, they will deliver exceptional service quality to customers, thereby producing the business profitability necessary to reinvest back into the workforce and operational infrastructure. In tandem with operational expansion, Frederick W. Smith recognized early that “the information about a package is as important as the delivery of the package itself.” This enduring operational insight continues to govern the company’s heavy focus on digital platforms, proprietary package tracking, sensor-based logistics, and artificial intelligence-driven network orchestration.
The Journey: History & Evolution
Federal Express pioneered express delivery in 1973 with a small fleet of aircraft operating out of Memphis, Tennessee. Over the ensuing five decades, the enterprise expanded aggressively via continuous organic expansion and landmark corporate combinations. On October 2, 1997, FedEx Corporation was incorporated in Delaware to serve as the parent holding company and provide unified strategic direction, financial stewardship, and governance across the growing portfolio of specialized operating subsidiaries.
The organizational architecture underwent significant evolutionary shifts over the past several years. Historically, FedEx operated its primary operating units—most notably express air transit and ground delivery—as independent, autonomous networks. To eliminate structural redundancies, modernize facilities, and permanently compress the operational cost baseline, the company executed its “One FedEx” consolidation plan. Effective June 1, 2024, FedEx Ground Package System, Inc. and FedEx Corporate Services, Inc. were legally merged into Federal Express Corporation, establishing a single operating company running a unified, fully integrated air-ground network.
Transformation momentum accelerated through fiscal year 2026 via three enterprise-wide optimization vectors: Network 2.0, Tricolor, and dedicated international domestic restructurings. Through Network 2.0, FedEx is overhauling its North American surface infrastructure by consolidating sortation terminals, optimizing linehaul routes, and deploying a hybrid pickup-and-delivery model utilizing both employee couriers and independent service providers. In parallel, the Tricolor initiative restructures intercontinental air lanes into three discrete tiers to maximize wide-body cargo asset utilization across priority parcels, freight, and deferred volumes.
- 1973: Launch of Federal Express commercial operations, pioneering the time-definite overnight delivery industry.
- October 2, 1997: Incorporation of FedEx Corporation in Delaware as the umbrella holding company.
- June 1, 2024: Completion of the One FedEx consolidation, legally merging FedEx Ground and FedEx Services into Federal Express Corporation.
- June 1, 2026: Execution of the full tax-free Spin-Off of FedEx Freight, separating the less-than-truckload freight business into an independent public entity.
- June 1, 2026: Corporate adoption of a calendar-year reporting cycle, transitioning fiscal year-end from May 31 to December 31.
The Corporate Umbrella
FedEx Corporation functions as a pure holding company that coordinates enterprise capital allocation, corporate governance, strategic investments, investor relations, and enterprise-wide technology frameworks. Until May 31, 2026, the parent holding entity reported its operating activities through two primary transportation segments—Federal Express and FedEx Freight—alongside an auxiliary corporate group labeled Corporate, Other, and Eliminations.
Effective June 1, 2026, following the tax-free separation of the FedEx Freight business via the pro rata distribution of 80.1% of FedEx Freight Holding Company, Inc. common stock to shareholders, the corporate umbrella was formally realigned. Under this revised internal reporting architecture reviewed by the Chief Executive Officer (the Chief Operating Decision Maker), continuing operations are divided into two primary reportable segments: Express U.S. Domestic and Express International, supported by non-transportation corporate services entities.
⚙️ The Business Engine: What They Do & Where They Operate
The Core Divisions
During the fiscal year ended May 31, 2026, FedEx derived its operations from two primary reportable transportation segments and its corporate group. The Federal Express segment represented the dominant core of enterprise activity, encompassing all air express networks and surface small-package ground transit across the globe. FedEx Freight provided regional and long-haul less-than-truckload (LTL) cargo transport across North America until its spin-off on June 1, 2026.
| Segment Name | FY26 Revenue ($M) | Revenue Share (%) | FY26 Operating Income ($M) | Operating Margin (%) | Segment Assets ($M) | FY26 Capex ($M) |
|---|---|---|---|---|---|---|
| Federal Express Segment | $82,273 | 86.86% | $5,912 | 7.2% | $84,047 | $3,349 |
| FedEx Freight Segment | $8,795 | 9.29% | $616 | 7.0% | $6,873 | $379 |
| Corporate, Other, and Eliminations | $3,652 | 3.86% | $(1,065) | NM | $8,017 | $81 |
| Consolidated Total | $94,720 | 100.00% | $5,463 | 5.8% | $98,937 | $3,809 |
The segment dynamics in 2026 highlight a significant divergence in divisional trajectories. Federal Express produced robust earnings growth, driven by base yield improvements, commercial rate increases, elevated fuel surcharges, and the structural realization of cost reductions under Network 2.0 and DRIVE initiatives. In contrast, FedEx Freight profitability compressed sharply due to cyclical softness in industrial manufacturing, excess capacity in the broader LTL market, and the absorption of $492 million in pre-tax separation costs tied to its public market spin-off.
- Federal Express Margin Expansion: Segment operating margin expanded 70 basis points from 6.5% in 2025 to 7.2% in 2026.
- Intercompany Allocations: Federal Express provides enterprise shared administrative, sales, and IT functions, allocating net credits of $853 million in 2026 ($791 million in 2025) across other business units.
- Freight Capital Separation: Prior to the Spin-Off, FedEx Freight settled an intercompany balance of $7.9 billion with Federal Express, redistributing capital balances across segment balance sheets.
The Global Product Catalog
FedEx provides an extensive portfolio of shipping, transportation, freight, and supply chain service offerings, segmented by geographic origin, delivery speed commitment, and cargo density.
| Service / Product Line | FY26 Disclosed Revenue ($M) | % Share of Consolidated Revenue | FY25 Disclosed Revenue ($M) | FY24 Disclosed Revenue ($M) | Latest YoY (%) |
|---|---|---|---|---|---|
| U.S. Priority Package | $11,603 | 12.25% | $10,520 | $10,543 | +10.29% |
| U.S. Deferred Package | $5,700 | 6.02% | $5,007 | $4,926 | +13.84% |
| U.S. Ground Package | $37,335 | 39.42% | $33,887 | $32,981 | +10.17% |
| Total U.S. Domestic Package | $54,638 | 57.68% | $49,414 | $48,450 | +10.57% |
| International Priority Export Package | $9,639 | 10.18% | $8,737 | $9,454 | +10.32% |
| International Economy Export Package | $5,925 | 6.26% | $5,861 | $4,653 | +1.09% |
| Total International Export Package | $15,564 | 16.43% | $14,598 | $14,107 | +6.62% |
| International Domestic Package | $4,725 | 4.99% | $4,495 | $4,659 | +5.12% |
| Total Package Revenue | $74,927 | 79.10% | $68,507 | $67,216 | +9.37% |
| U.S. Express Freight | $1,252 | 1.32% | $1,536 | $2,391 | -18.49% |
| International Priority Freight | $2,560 | 2.70% | $2,320 | $2,205 | +10.34% |
| International Economy Freight | $2,244 | 2.37% | $1,975 | $1,874 | +13.62% |
| Total Federal Express Freight | $6,056 | 6.39% | $5,831 | $6,470 | +3.86% |
| Federal Express Other Revenue | $1,290 | 1.36% | $966 | $977 | +33.54% |
| FedEx Freight (LTL Segment) | $8,795 | 9.29% | $8,892 | $9,429 | -1.09% |
| Corporate, Other, and Eliminations Revenue | $3,652 | 3.86% | $3,730 | $3,601 | -2.09% |
| Consolidated Enterprise Revenue | $94,720 | 100.00% | $87,926 | $87,693 | +7.73% |
Revenue distribution reflects the dominant contribution of domestic surface operations. The U.S. Ground package product line constitutes the single largest revenue engine, generating $37.335 billion, or 39.42% of total enterprise turnover. Across all Federal Express operations, total package delivery revenue advanced 9% to $74.927 billion, representing nearly four-fifths of enterprise revenue.
- U.S. Priority Overnight Expansion: Grew 10% to $11.603 billion, supported by an average daily volume of 1.678 million packages at a yield of $27.22 per parcel.
- E-Commerce Ground Volume: U.S. ground commercial and residential delivery averaged 11.771 million packages daily (4.329 million commercial; 7.442 million home delivery and economy).
- USPS Contract Expiration: U.S. express freight contracted 18% to $1.252 billion as the scheduled expiration of the U.S. Postal Service air cargo agreement reduced freight volume.
- Yield Discipline: Composite package yield expanded 6% to $16.80 per package, while composite freight yield climbed 4% to $1.25 per pound.
The Names You Know
FedEx holds numerous federally and internationally registered trademarks, service marks, and trade names that form the commercial core of its brand identity. Key commercial properties include:
- FedEx® and FedEx Express®: The globally recognized marks representing the core integrated air-ground network.
- FedEx Ground®: The brand identity governing North American day-definite commercial and residential ground transport.
- FedEx Office®: The retail and printing services brand, encompassing approximately 2,000 digitally connected store locations.
- FedEx Logistics®: Specialized integrated freight forwarding, customs brokerage, and multi-modal logistics services.
- FedEx Dataworks®: The technology division focused on establishing the enterprise data estate and digital supply chain solutions.
- FedEx Supply Chain®: Product lifecycle logistics, reverse logistics, and multi-channel fulfillment operations.
- Licensed Trademarks: In connection with the Spin-Off on June 1, 2026, FedEx executed long-term intellectual property cross-license and trademark agreements licensing the FedEx Freight and FedEx Custom Critical brand marks to FedEx Freight Holding Company, Inc.
Mapping the Global Reach
FedEx organizes its operations across expansive domestic and cross-border corridors. Geographically, revenue is categorized based on shipment origin and destination points, while noncurrent capital assets are classified by geographic title.
| Geographic Market / Operational Area | FY26 Revenue ($M) | Revenue Share (%) | FY25 Revenue ($M) | FY24 Revenue ($M) | Latest YoY (%) |
|---|---|---|---|---|---|
| United States (Domestic Operations) | $67,944 | 71.73% | $62,916 | $63,531 | +7.99% |
| International – Federal Express Segment | $25,480 | 26.90% | $23,720 | $23,136 | +7.42% |
| International – FedEx Freight Segment | $243 | 0.26% | $247 | $266 | -1.62% |
| International – Other Operating Units | $1,053 | 1.11% | $1,043 | $760 | +0.96% |
| Total International Revenue | $26,776 | 28.27% | $25,010 | $24,162 | +7.06% |
| Consolidated Global Revenue | $94,720 | 100.00% | $87,926 | $87,693 | +7.73% |
The geographic data highlights that the United States remains FedEx’s core operating engine, contributing 71.73% of enterprise turnover. International revenues expanded 7.06% in 2026 to reach $26.776 billion, benefiting from heightened European business-to-business demand and favorable currency translation tailwinds, which counterbalanced trade policy headwinds and softness in Asian export markets.
| Geographic Asset Classification | As of May 31, 2026 ($M) | Asset Share (%) | As of May 31, 2025 ($M) | As of May 31, 2024 ($M) |
|---|---|---|---|---|
| United States Long-Lived Assets | $58,134 | 81.84% | $57,040 | $56,822 |
| International Long-Lived Assets | $12,900 | 18.16% | $12,201 | $11,978 |
| Total Noncurrent Long-Lived Assets | $71,034 | 100.00% | $69,241 | $68,800 |
United States property, plant, and equipment, operating lease right-of-use assets, and goodwill account for 81.84% of total long-lived capital deployments. All commercial flight equipment is legally registered in the United States and recorded as domestic assets, despite continuous multi-continental operation across international trunk routes.
The Brick & Mortar Footprint
FedEx maintains an immense physical footprint encompassing air sorting hubs, land facilities, trucking terminals, customer-facing retail centers, and modern administration offices.
| Primary Air Sorting Facility | Location | Acreage | Facility Size (Sq. Ft.) | Hourly Sorting Capacity | Lease Expiration Year |
|---|---|---|---|---|---|
| World Super Hub (Primary) | Memphis, Tennessee | 967 | 5,115,929 | 484,000 parcels/docs | 2036 |
| National Hub | Indianapolis, Indiana | 449 | 3,229,112 | 164,000 parcels/docs | 2053 |
| National / Regional Hub | Miami, Florida | 35 | 284,809 | 7,000 parcels/docs | 2041 |
| Regional Air Hub | Fort Worth, Texas | 168 | 987,388 | 76,000 parcels/docs | 2041 |
| Regional Air Hub | Newark, New Jersey | 70 | 634,193 | 156,000 parcels/docs | 2030 |
| Regional Air Hub | Oakland, California | 75 | 587,700 | 63,000 parcels/docs | 2036 |
| Metropolitan Hub | Chicago, Illinois | 54 | 481,350 | 21,000 parcels/docs | 2028 |
| Metropolitan Hub | Los Angeles, California | 34 | 305,300 | 23,000 parcels/docs | 2025 (Month-to-month) |
| Metropolitan Hub | Atlanta, Georgia | 35 | 291,525 | 22,600 parcels/docs | 2030 |
| International Air Hub | Anchorage, Alaska | 64 | 417,300 | 25,000 parcels/docs | 2078 |
| European Gateway Hub | Paris (CDG), France | 123 | 1,798,368 | 59,000 parcels/docs | 2048 |
| Central European Air Hub | Cologne, Germany | 14 | 731,267 | 17,900 parcels/docs | 2040 |
| Asia-Pacific Hub | Guangzhou, China | 155 | 873,006 | 36,000 parcels/docs | 2029 |
| North Pacific Regional Hub | Osaka (KIX), Japan | 17 | 425,206 | 9,000 parcels/docs | 2029 |
| European Air Hub | Liege, Belgium | 23 | 1,027,952 | 33,700 parcels/docs | 2036 |
Complementing its major air terminals, Federal Express operated approximately 1,200 surface operational facilities in the United States as of May 31, 2026, including 1,085 owned or leased operating facilities and 96 sorting and distribution centers in Canada. Under the Network 2.0 optimization blueprint, these surface facilities are being systematically modernized and merged; 410 locations across the U.S. and Canada had completed optimization by the close of fiscal 2026.
The ancillary physical estate features substantial retail and logistics infrastructure:
- FedEx Office Retail Estate: Approximately 2,000 customer-facing retail printing and shipping stores averaging 3,200 square feet, complemented by 16 centralized production manufacturing plants.
- Drop-Off Convenience Points: Approximately 84,000 total drop-off points globally, including 23,000 unstaffed FedEx Drop Boxes, over 15,000 Walgreens and Dollar General retail partner locations, and 500 FedEx Ship Centers.
- Supply Chain and Forwarding Network: FedEx Supply Chain operated over 150 logistics facilities, while FedEx Logistics managed approximately 100 offices across 34 countries and territories.
- Aircraft Fleet Infrastructure: 700 commercial aircraft, consisting of 59 Boeing B777Fs, 29 Boeing MD-11s, 152 Boeing 767Fs, 57 Airbus A300-600s, 86 Boeing 757-200s, 62 ATR feeder turboprops, and 255 Cessna utility freighters.
📊 The Financial Health: The Global Numbers Simplified
Earnings, Expenses, & Take-Home Profits
The following table presents FedEx Corporation’s consolidated statements of income for the fiscal years ended May 31, 2026, 2025, and 2024 as disclosed under U.S. GAAP.
| Consolidated Statement of Income ($M, except per share) | FY26 (Ended May 31, 2026) | FY25 (Ended May 31, 2025) | FY24 (Ended May 31, 2024) | Latest YoY (%) |
|---|---|---|---|---|
| REVENUE | $94,720 | $87,926 | $87,693 | +7.73% |
| OPERATING EXPENSES: | ||||
| Salaries and employee benefits | 33,844 | 31,232 | 30,961 | +8.36% |
| Purchased transportation | 23,620 | 21,768 | 20,921 | +8.51% |
| Rentals and landing fees | 4,883 | 4,647 | 4,571 | +5.08% |
| Depreciation and amortization | 4,369 | 4,264 | 4,287 | +2.46% |
| Fuel | 4,052 | 3,775 | 4,710 | +7.34% |
| Maintenance and repairs | 3,330 | 3,245 | 3,291 | +2.62% |
| Separation and other costs | 771 | 38 | — | +1928.95% |
| Business optimization and realignment costs | 366 | 756 | 582 | -51.59% |
| Goodwill and other asset impairment charges | 23 | 21 | 157 | +9.52% |
| Other operating expenses | 13,999 | 12,963 | 12,654 | +7.99% |
| TOTAL OPERATING EXPENSES | 89,257 | 82,709 | 82,134 | +7.92% |
| OPERATING INCOME | 5,463 | 5,217 | 5,559 | +4.72% |
| OTHER INCOME (EXPENSE): | ||||
| Interest expense | (970) | (789) | (745) | +22.94% |
| Other retirement plans income | 885 | 713 | 722 | +24.12% |
| Interest income | 437 | 363 | 370 | +20.39% |
| Other, net | (22) | (63) | (70) | -65.08% |
| TOTAL OTHER INCOME (EXPENSE) | 330 | 224 | 277 | +47.32% |
| INCOME BEFORE INCOME TAXES | 5,793 | 5,441 | 5,836 | +6.47% |
| Provision for income taxes | 1,360 | 1,349 | 1,505 | +0.82% |
| NET INCOME | $4,433 | $4,092 | $4,331 | +8.33% |
| EARNINGS PER COMMON SHARE: | ||||
| Basic earnings per common share | $18.71 | $16.96 | $17.41 | +10.32% |
| Diluted earnings per common share | $18.55 | $16.81 | $17.21 | +10.35% |
Operational profitability in 2026 reflected disciplined commercial pricing overcoming inflationary cost pressures. Operating income expanded 5% to $5.463 billion despite the absorption of $771 million in transaction separation and fiscal year change costs, $366 million in transformation execution charges, and $23 million in aircraft impairment write-downs.
- Labor Cost Dynamics: Salaries and employee benefits represented 35.7% of total revenues in 2026, expanding 8% year-over-year to $33.844 billion as a result of wage rate escalations, incentive bonuses, and higher healthcare accruals.
- Contracted Transit Outlays: Purchased transportation rose 9% to $23.620 billion, driven by higher small-package ground handling volumes and expanded vendor linehaul rates.
- Fuel Volatility Management: Fuel expense increased 7% to $4.052 billion, remaining steady at 4.3% of revenue due to the company’s weekly indexed fuel surcharge mechanism.
- Net Margin Improvement: Diluted earnings per common share advanced 10% to $18.55, bolstered by a $0.21 accretive contribution from open market and accelerated share repurchases.
Assets, Debts, & Corporate Wealth
The consolidated balance sheets detail the capital and asset structure supporting FedEx Corporation’s global logistics infrastructure.
| Consolidated Balance Sheet ($M) | As of May 31, 2026 | As of May 31, 2025 | Latest YoY (%) |
|---|---|---|---|
| CURRENT ASSETS: | |||
| Cash and cash equivalents | $13,311 | $5,502 | +141.93% |
| Receivables, less allowances of $864 and $773 | 12,672 | 11,368 | +11.47% |
| Spare parts, supplies, and fuel, less allowances | 669 | 602 | +11.13% |
| Prepaid expenses and other current assets | 1,251 | 914 | +36.87% |
| TOTAL CURRENT ASSETS | 27,903 | 18,386 | +51.76% |
| PROPERTY AND EQUIPMENT, AT COST: | |||
| Aircraft and related flight equipment | 32,107 | 31,584 | +1.66% |
| Package handling and ground support equipment | 19,816 | 18,878 | +4.97% |
| Information technology equipment and software | 9,942 | 9,706 | +2.43% |
| Vehicles and long-haul trailers | 11,150 | 10,949 | +1.84% |
| Facilities and other infrastructure | 17,911 | 16,505 | +8.52% |
| Total property and equipment, at cost | 90,926 | 87,622 | +3.77% |
| Less accumulated depreciation and amortization | (48,882) | (45,980) | +6.31% |
| NET PROPERTY AND EQUIPMENT | 42,044 | 41,642 | +0.97% |
| OTHER LONG-TERM ASSETS: | |||
| Operating lease right-of-use assets, net | 16,822 | 16,453 | +2.24% |
| Goodwill | 6,733 | 6,603 | +1.97% |
| Other noncurrent assets | 5,435 | 4,543 | +19.63% |
| TOTAL OTHER LONG-TERM ASSETS | 28,990 | 27,599 | +5.04% |
| TOTAL ASSETS | $98,937 | $87,627 | +12.91% |
| CURRENT LIABILITIES: | |||
| Accrued expenses | $5,725 | $4,995 | +14.61% |
| Accounts payable | 4,327 | 3,692 | +17.20% |
| Accrued salaries and employee benefits | 3,759 | 2,731 | +37.64% |
| Operating lease liabilities (current portion) | 2,680 | 2,565 | +4.48% |
| Current portion of long-term debt | 1,676 | 1,428 | +17.37% |
| Short-term borrowings (commercial paper) | 745 | — | – |
| TOTAL CURRENT LIABILITIES | 18,912 | 15,411 | +22.72% |
| LONG-TERM DEBT, LESS CURRENT MATURITIES | 23,293 | 19,151 | +21.63% |
| OTHER LONG-TERM LIABILITIES: | |||
| Operating lease liabilities | 14,549 | 14,272 | +1.94% |
| Self-insurance accruals (noncurrent) | 4,413 | 4,033 | +9.42% |
| Deferred income taxes | 3,664 | 4,205 | -12.87% |
| Pension, postretirement, and benefit obligations | 1,625 | 1,698 | -4.30% |
| Other noncurrent liabilities | 834 | 783 | +6.51% |
| TOTAL OTHER LONG-TERM LIABILITIES | 25,085 | 24,991 | +0.38% |
| COMMON STOCKHOLDERS’ INVESTMENT: | |||
| Common stock ($0.10 par value; 800M authorized; 318M issued) | 32 | 32 | 0.00% |
| Additional paid-in capital | 4,717 | 4,290 | +9.95% |
| Retained earnings | 44,461 | 41,402 | +7.39% |
| Accumulated other comprehensive loss (AOCL) | (1,227) | (1,362) | -9.91% |
| Treasury stock, at cost (78M shares in 2026; 80M in 2025) | (16,336) | (16,288) | +0.29% |
| TOTAL COMMON STOCKHOLDERS’ INVESTMENT | 31,647 | 28,074 | +12.73% |
| TOTAL LIABILITIES & EQUITY | $98,937 | $87,627 | +12.91% |
The consolidated balance sheet expanded substantially at year-end, reflecting an asset base of $98.937 billion. Total cash and cash equivalents grew by $7.809 billion to reach $13.311 billion, driven heavily by $5.289 billion in total proceeds from debt issuances (principally $3.7 billion of unsecured senior notes issued by FedEx Freight Holding Company, Inc. and €850 million of corporate senior notes) along with a $4.1 billion intercompany cash dividend transferred from FedEx Freight to the parent entity prior to separation.
- Capital Injections: Total property and equipment at cost expanded to $90.926 billion, with net book value standing at $42.044 billion after $48.882 billion in cumulative depreciation.
- Right-of-Use Assets: Capitalized operating lease right-of-use assets totaled $16.822 billion against total operating lease liabilities of $17.229 billion ($2.680 billion current; $14.549 billion long-term).
- Stockholders’ Equity Growth: Stockholders’ investment advanced $3.573 billion to $31.647 billion, underpinned by retained earnings growth to $44.461 billion.
Cash Flow: Tracking the Money Movement
The statements of cash flows illustrate the mechanics of FedEx’s cash generation, heavy capital investment cadence, and capital structure reorganization.
| Consolidated Statement of Cash Flows ($M) | FY26 | FY25 | FY24 | Latest YoY (%) |
|---|---|---|---|---|
| OPERATING ACTIVITIES: | ||||
| Net income | $4,433 | $4,092 | $4,331 | +8.33% |
| Depreciation and amortization | 4,369 | 4,264 | 4,287 | +2.46% |
| Provision for uncollectible accounts | 946 | 521 | 421 | +81.57% |
| Other noncash items (leases and deferred taxes) | 2,937 | 3,156 | 2,919 | -6.94% |
| Stock-based compensation | 177 | 154 | 163 | +14.94% |
| Retirement plans mark-to-market adjustments | (647) | (515) | (561) | +25.63% |
| Goodwill and other asset impairment charges | 23 | 21 | 157 | +9.52% |
| Separation and other costs, net of payments | 248 | 15 | — | +1553.33% |
| Business optimization and realignment, net of payments | (48) | 43 | 26 | N/M |
| Changes in operating assets and liabilities: | ||||
| Receivables | (2,247) | (1,780) | (270) | +26.24% |
| Other current assets | (121) | 90 | (43) | N/M |
| Pension and postretirement healthcare assets/liabilities, net | (169) | (553) | (522) | -69.44% |
| Accounts payable and other liabilities | (933) | (2,460) | (2,553) | -62.07% |
| Other operating activities, net | (43) | (12) | (43) | +258.33% |
| Net cash provided by operating activities | 8,925 | 7,036 | 8,312 | +26.85% |
| INVESTING ACTIVITIES: | ||||
| Capital expenditures | (3,809) | (4,055) | (5,176) | -6.07% |
| Purchase of investments | (682) | (262) | (176) | +160.31% |
| Proceeds from sale of investments | 483 | 110 | 38 | +339.09% |
| Proceeds from asset dispositions and other investing, net | 97 | 115 | 114 | -15.65% |
| Net cash used in investing activities | (3,911) | (4,092) | (5,200) | -4.42% |
| FINANCING ACTIVITIES: | ||||
| Proceeds from debt issuances | 5,289 | — | — | – |
| Short-term borrowings, net | 742 | — | — | – |
| Principal payments on debt | (2,049) | (157) | (147) | +1205.10% |
| Proceeds from stock issuances | 992 | 524 | 491 | +89.31% |
| Dividends paid | (1,374) | (1,339) | (1,259) | +2.61% |
| Purchase of common stock | (796) | (3,017) | (2,500) | -73.62% |
| Other financing activities, net | (55) | (30) | (11) | +83.33% |
| Net cash provided by (used in) financing activities | 2,749 | (4,019) | (3,426) | N/M |
| Effect of exchange rate changes on cash | 46 | 76 | (41) | -39.47% |
| Net increase (decrease) in cash and cash equivalents | 7,809 | (999) | (355) | N/M |
| Cash and cash equivalents at beginning of period | 5,502 | 6,501 | 6,856 | -15.37% |
| Cash and cash equivalents at end of period | $13,311 | $5,502 | $6,501 | +141.93% |
Operating cash flows reached $8.925 billion in 2026, an improvement of $1.889 billion over 2025. This expansion was propelled by higher operating profitability and favorable working capital timing differences, including elevated self-insurance reserves, legal and separation professional fee accruals, and variable incentive compensation liabilities. These cash inflows were partially absorbed by an increase in accounts receivable arising from higher commercial shipping revenues.
- Capital Discipline: Investing activities consumed $3.911 billion, driven by $3.809 billion in property, equipment, and technology expenditures—down 6% year-over-year.
- Financing Reversal: Financing activities generated positive net cash of $2.749 billion compared to an outflow of $4.019 billion in 2025, reflecting pre-Spin-Off bond issuances by FedEx Freight Holding Company, Inc. and parent senior notes.
- Shareholder Distributions: Direct capital distributions to equity holders totaled $2.170 billion, comprising $1.374 billion in cash dividends paid and $796 million in common share repurchases.
Funding the Future: R&D and Expansion Spending
FedEx maintains extensive multi-year commitments to modernize its air and surface operations. Total capital expenditures in 2026 reached $3.809 billion, directed primarily toward aircraft fleet modernization, advanced sorting facility automation, network technologies, and terminal upgrades.
| Asset Category | FY26 Capex ($M) | FY25 Capex ($M) | Latest YoY (%) |
|---|---|---|---|
| Aircraft and related flight equipment | $967 | $1,251 | -22.70% |
| Package handling and ground support equipment | 1,015 | 935 | +8.56% |
| Information technology hardware and software | 463 | 504 | -8.13% |
| Vehicles and long-haul trailers | 347 | 434 | -20.05% |
| Facilities, real estate, and other infrastructure | 1,017 | 931 | +9.24% |
| Total Consolidated Capital Expenditures | $3,809 | $4,055 | -6.07% |
For calendar year 2026, management projects capital expenditures of approximately $3.9 billion (excluding FedEx Freight), representing a $0.4 billion increase over calendar 2025. This capital deployment prioritizes the acceleration of Network 2.0 surface sortation automation and the ongoing modernization of primary air hubs in Memphis and Indianapolis. Aircraft capital expenditures are projected at approximately $1.0 billion for calendar 2026.
Beyond discretionary capital budgets, FedEx maintains noncancellable firm purchase commitments for flight equipment, computer systems, and advertising agreements.
| Fiscal Year Commitment Schedule | Aircraft & Related ($M) | Other Commitments ($M) | Total Purchase Commitments ($M) |
|---|---|---|---|
| 2027 | $919 | $1,629 | $2,548 |
| 2028 | 1,031 | 1,311 | 2,342 |
| 2029 | 443 | 1,288 | 1,731 |
| 2030 | 383 | 931 | 1,314 |
| 2031 | 308 | 705 | 1,013 |
| Thereafter | 1,664 | 110 | 1,774 |
| Total Noncancellable Commitments | $4,748 | $5,974 | $10,722 |
As of May 31, 2026, FedEx had disbursed $727 million in cumulative progress payments and deposits for aircraft purchases, recorded within other long-term assets. Firm aircraft purchase commitments encompass 36 factory-built cargo airframes:
| Aircraft Delivery Year | Cessna SkyCourier 408 | ATR 72-600F | Boeing B777F | Annual Total Deliveries |
|---|---|---|---|---|
| 2027 | 9 | 5 | 5 | 19 |
| 2028 | 2 | 4 | 5 | 11 |
| 2029 | — | 4 | — | 4 |
| 2030 | — | 2 | — | 2 |
| Total Aircraft Commitments | 11 | 15 | 10 | 36 |
🗺️ The Corporate Family Tree: Structure & Investments
Subsidiaries, Associates, & Shared Ventures
FedEx Corporation functions as the ultimate holding parent, holding direct or indirect 100% equity ownership in its key operating operating companies. The principal operating entities disclosed in the enterprise group include:
| Disclosed Operating Entity | Ownership Stake (%) | Operational Role / Scope | Segment Classification (FY26) |
|---|---|---|---|
| Federal Express Corporation | 100% | Global express air transport, U.S. ground package distribution, international intra-country networks | Federal Express Segment |
| FedEx Freight, Inc. | 100% (Spun off June 1, 2026) | Less-than-truckload (LTL) motor carriage services across North America | FedEx Freight Segment |
| FedEx Custom Critical, Inc. | 100% (Transferred to Freight) | Expedited, time-specific, temperature-controlled, and secure ground and air transport | FedEx Freight Segment |
| FedEx Freight Holding Company, Inc. | 19.9% retained post-spin | Publicly traded holding entity for the separated LTL freight business (NYSE: FDXF) | Discontinued Operations / Equity Investment |
| FedEx Office and Print Services, Inc. | 100% | Retail document management, printing services, and commercial shipping access network | Corporate, Other, and Eliminations |
| FedEx Logistics, Inc. | 100% | Customs brokerage, ocean and air freight forwarding, trade management tools | Express International (effective June 1, 2026) |
| FedEx Dataworks, Inc. | 100% | Data intelligence platform, digital commercial applications, supply chain orchestration | Corporate, Other, and Eliminations |
| FedEx Supply Chain Distribution System, Inc. | 100% (Subject to sale) | Third-party logistics (3PL), returns management, reverse logistics, and product lifecycle support | Corporate, Other, and Eliminations |
| FDXF Holding Corporation | Affiliate | Intellectual property holding entity party to cross-licensing arrangements | Corporate / Shared Entity |
Strategic portfolio streamlining progressed aggressively at year-end. On July 1, 2026, FedEx entered into a definitive agreement to sell its FedEx Supply Chain business to CMA CGM Group for a total cash consideration of $1.4 billion. The transaction is scheduled to close in the second half of calendar year 2026, upon which FedEx will deconsolidate the business unit entirely.
Strategic Investments & Minority Stakes
FedEx maintains specialized minority equity positions to advance technological capabilities and expand cross-border infrastructure.
| Target Entity / Investment | Equity Stake (%) | Valuation / Committed Outlay | Strategic Commercial Rationale |
|---|---|---|---|
| FedEx Freight Holding Company, Inc. | 19.9% retained | Accounted for as equity security at fair value | Retained minority interest post-Spin-Off; management committed to full monetization within 24 months. |
| InPost S.A. (Consortium Offer) | 37.0% (Post-completion) | Approximately €2.20 billion | Public cash offer (€15.60 per share) alongside consortium partners for standalone European automated parcel locker and logistics platform. |
| Harbinger Motors | Minority stake | Participated in $160M Series C round (2025) | Development of medium-duty commercial electric vehicles, including initial order of 53 EV trucks. |
| Aurora Innovation & PACCAR Pilot | Collaborative pilot | Operational testing agreement | Commercial evaluation of autonomous Class 8 linehaul tractors across long-distance transit lanes. |
| Yale Center for Natural Carbon Capture | Research sponsorship | Multi-year research funding | Advancement of nature-based, durable carbon dioxide removal solutions for residual post-2040 aviation emissions. |
Investments in equity securities stood at $564 million on May 31, 2026, consisting of $102 million in Level 1 publicly traded securities, $60 million in practical expedient net asset value (NAV) holdings, and $402 million in private equity holdings accounted for under the measurement alternative.
👥 Power & Control: Who Pulls the Strings?
The Brain Trust: Board of Directors & Executive Leadership
| Executive Officer Name | Current Position / Role | Corporate Oversight & Background |
|---|---|---|
| Rajesh Subramaniam | President and Chief Executive Officer & Director | Chief Operating Decision Maker (CODM); leads global strategy, Network 2.0 transformation, and enterprise operations across FedEx Corporation. |
| John W. Dietrich | Executive Vice President and Chief Financial Officer | Oversees global financial reporting, capital allocation, treasury, tax, investor relations, and DRIVE cost optimization initiatives. |
| Brie A. Carere | Executive Vice President and Chief Customer Officer | Directs global commercial strategy, marketing, customer experience, e-commerce product innovation, and revenue management. |
| Sriram Krishnasamy | Executive Vice President, Chief Digital and Information Officer and Chief Transformation Officer | Leads FedEx Dataworks, enterprise IT architecture, cybersecurity (CyTOC interface), AI deployment, and DRIVE transformation execution. |
| Mark R. Allen | Executive Vice President, General Counsel and Secretary | Oversees global legal affairs, corporate governance, regulatory compliance, international trade policy, and board secretarial functions. |
| Richard W. Smith | Chief Operating Officer, International and Chief Executive Officer, Airline | Directs global air network operations (700 aircraft), Tricolor air lane optimization, and international express operations. |
| John A. Smith | Chief Operating Officer, U.S. and Canada Surface Operations | Leads North American surface parcel operations, Network 2.0 terminal consolidation, and contracted service provider networks. |
Enterprise governance is exercised by the FedEx Corporation Board of Directors, which maintains a substantial majority of independent directors. Board oversight is structured across four primary standing committees:
- Audit and Finance Committee: Oversees financial accounting reporting processes, internal control architectures, independent auditor engagements (Ernst & Young LLP), enterprise risk management (ERM), and credit facilities.
- Compensation and Human Resources Committee: Reviews executive compensation, talent recruitment and retention architectures, pay equity benchmarking, and human capital safety and diversity initiatives.
- Governance, Safety, and Public Policy Committee: Reviews corporate governance guidelines, board nominations, workplace health and safety metrics, environmental and public policy disclosures, and community outreach.
- Cyber and Technology Oversight Committee (“CyTOC”): Directly oversees enterprise cybersecurity posture, data protection architectures, digital continuity, IT risk management, and the implementation of emerging technologies including AI and machine learning.
Executive management is led by the Chief Executive Officer, who serves as the Chief Operating Decision Maker (CODM). Technology, digital platform development, and information security are centralized under the Executive Vice President – Chief Digital and Information Officer, who participates in the FedEx Executive Committee. The Corporate Vice President – Chief Information Security Officer (CISO), reporting to the Chief Digital Officer, leads an enterprise team of over 400 dedicated security, risk, and compliance professionals.
Who Owns the Stock?
FedEx Corporation common stock is publicly listed on the New York Stock Exchange under the ticker symbol FDX. As of July 16, 2026, the corporation had 236,581,188 shares of common stock outstanding ($0.10 par value), held by institutional investors, retail shareholders, and corporate insiders. As of November 30, 2025 (the conclusion of the second fiscal quarter), the aggregate market value of common stock held by non-affiliates was approximately $64.6 billion.
The company aggressively utilizes share repurchase authorizations to manage its capital base:
| Share Repurchase Program Details | Shares Repurchased | Average Repurchase Price | Total Capital Outlay ($M) | Diluted EPS Benefit |
|---|---|---|---|---|
| Fiscal Year 2026 Repurchases | 3.3 million shares | $233.07 per share | $776 million | $0.21 per diluted share |
| Fiscal Year 2025 Repurchases | 10.9 million shares | $274.34 per share | $3,000 million | $0.44 per diluted share |
| Fiscal Year 2024 Repurchases | 9.8 million shares | $255.34 per share | $2,500 million | Disclosed in FY25 filing |
Subsequent to the fiscal year ended May 31, 2026, FedEx fully exhausted the remaining $1.3 billion authorization under its March 2024 program during June 2026 via $0.3 billion in open market repurchases and a $1.0 billion accelerated share repurchase (ASR) agreement. On July 20, 2026, the Board of Directors approved a brand-new $5.0 billion common stock repurchase authorization (“2026 program”) with no fixed expiration date.
🎯 The Strategic Outlook: Future Plans & Potential Pitfalls
Competitive Advantages & Economic Moats
FedEx maintains structural competitive advantages that form a wide economic moat against prospective market entrants:
- Irreplaceable Transportation Infrastructure: The global physical air-and-ground express delivery network reflects more than five decades of concentrated capital investment, connecting more than 99% of global economic activity via 700 aircraft, 180,000 vehicles, and thousands of sortation terminals. Replicating this scale is cost-prohibitive.
- Bilateral International Air Route Authorities: Federal Express holds critical worldwide aviation route authorities, landing slots, and intergovernmental bilateral aviation rights granted under DOT and international open-skies agreements that are heavily restricted and difficult for new competitors to obtain.
- Integrated Digital Backbone: Enterprise systems process data from over 18 million packages daily, providing near real-time tracking, automated yard management, laser scanning sortation, and proprietary machine-learning volume forecasting.
- Universal U.S. Surface Coverage: Express U.S. Domestic surface operations reach 100% of the continental United States population, providing day-definite weekend delivery coverage to 99% of the U.S. population on Saturdays and nearly two-thirds on Sundays.
What Could Go Wrong? Key Challenges & Business Risks
FedEx operates in an environment characterized by acute operational, macroeconomic, regulatory, and technological risks:
- Macroeconomic Cyclicality and Trade Headwinds: Weakening global industrial production, shifts in consumer spending from goods to services, elevated inflation, and shifting international trade policies directly depress freight and parcel volumes across long-haul transit networks.
- IEEPA Tariff Uncertainties & Class Litigation: Following the February 20, 2026 Supreme Court decision invalidating tariffs under the International Emergency Economic Powers Act, FedEx filed claims for $3.3 billion in duty refunds, receiving $800 million through May 31, 2026. The company recorded $749 million in current customer refund obligations, while facing 14 consolidated class action lawsuits from shippers seeking direct tariff recoveries.
- Surface Network Integration Risks: The execution of Network 2.0 requires merging distinct operating cultures, consolidating facilities, and altering delivery routes. Any failure to manage relationships with the approximately 5,300 contracted service providers could cause local service interruptions.
- Labor Relations and Legal Status Challenges: Non-pilot U.S. employees are currently organized under the nationwide collective bargaining provisions of the Railway Labor Act. Legislative attempts or legal challenges to reclassify employees under the National Labor Relations Act (NLRA) or reclassify contracted service provider delivery drivers as direct joint-employees pose a significant risk of wage escalation and local unionization.
- MD-11 Fleet Operational Disruption: Emergency FAA Airworthiness Directives grounded the entire fleet of Boeing MD-11 tri-jet freighters in November 2025 due to potential structural flight safety defects, necessitating intensive inspections and phased return-to-service protocols extending through calendar year 2026.
- Severe Claims Environment & Self-Insurance Accruals: Self-insurance reserves totaled $6.382 billion at year-end ($1.969 billion short-term; $4.413 billion long-term). Industry-wide exposure to “nuclear” vehicle accident verdicts and tightening excess reinsurance capacity expose the company to significant liabilities. A 5% increase in assumed claim severity would add $320 million in pre-tax insurance expenses.
The Next Chapter: Growth & Expansion Initiatives
FedEx’s forward strategy centers on achieving a structurally lower cost-to-serve while building higher-margin commercial revenue channels:
- Network 2.0 Full Surface Optimization: Following complete operational deployment across Canada in fiscal 2025, FedEx is driving surface consolidation across the United States, targeting full domestic completion by the end of calendar year 2027 to unlock structural cost efficiencies.
- Tricolor Air Network Redesign: Systematically restructuring intercontinental flying schedules into three asset-optimized tiers—Purple (priority parcels on owned freighters), Orange (off-peak deferred freight on owned assets), and White (commercial belly cargo capacity)—to maximize aircraft capacity utilization.
- Enterprise DRIVE Cost Targets: Delivering permanent baseline cost reductions, targeting an incremental $1.0 billion in structural savings by the end of calendar year 2026.
- AI-Powered Commercial Tools: Scaling commercial deployments of white-label e-commerce applications, including FedEx Tracking+ and FedEx Returns+, alongside the March 2026 launch of FedEx SameDay Local to capture urban on-demand fulfillment.
- Aviation Decarbonization Roadmap: Advancing toward enterprise carbon-neutral operations by calendar 2040 through five major SAF offtake agreements (16.5 million gallons of blended fuel online at LAX, ORD, MIA, DFW, and JFK), targeting 30% alternative jet fuel blending by 2030 and full MD-11 fleet retirement by 2032.
The Verdict: Strategic Outlook & Conclusion
FedEx Corporation enters the second half of calendar year 2026 positioned as a leaner, structurally re-engineered enterprise. By successfully executing the tax-free spin-off of FedEx Freight and announcing the pending $1.4 billion sale of its Supply Chain logistics division, management has sharpened the organization’s strategic aperture around high-yielding express parcel logistics and time-definite cross-border freight forwarding.
Supported by a robust $13.311 billion cash position, ratified long-term pilot labor stability extending through December 2030, an expanding operating cash flow base of $8.925 billion, and ongoing realization of Network 2.0 surface efficiencies, FedEx possesses the financial flexibility and operational infrastructure to navigate near-term macroeconomic volatility while driving sustained long-term return on invested capital.
Official Site: https://fedex.com
Note: Financial ratios, margins, year-over-year (YoY) growth rates, and percentage shares of revenue are calculated by FirmsWorld based on figures reported in the company’s official SEC filing.