Fedex Corp

FedEx FY2026 revenue rose 8% to $94.7B with net income of $4.4B and diluted EPS of $18.55, while consolidated operating margin narrowed 10 bp to 5.8%.

Revenue increased 8% to $94.7B from $87.9B, which management attributes to improved base yields for package services, increased U.S. domestic package volumes, higher fuel surcharges, and favorable exchange rates, partially offset by the expiration of the U.S. Postal Service contract and lower FedEx Freight shipments. Consolidated operating income rose 5% to $5.5B while consolidated operating margin narrowed 10 bp to 5.8%, as the Federal Express segment operating margin expanded 70 bp to 7.2% and the FedEx Freight segment operating margin contracted 970 bp to 7.0%. Net income rose 8% to $4.4B and diluted EPS rose 10% to $18.55.

Operating income of $5,463M includes items affecting operating income of $(1,148)M in 2026, comprising Spin-Off costs of $(738)M, business optimization costs of $(366)M, asset impairment charges of $(23)M, a $12M benefit from international regulatory and legacy FedEx Ground legal matters, and fiscal year change costs of $(33)M; the comparable 2025 items totaled $(903)M. Net income of $4,433M includes items affecting net income of $(405)M in 2026, comprising Spin-Off costs net of tax of $(589)M, MTM retirement plans accounting adjustments net of tax of $497M, business optimization costs net of tax of $(285)M, asset impairment charges net of tax of $(18)M, international regulatory and legacy FedEx Ground legal matters net of tax of $16M, and fiscal year change costs net of tax of $(26)M; the comparable 2025 items totaled $(337)M. The filing does not report an adjusted or ex-item net income total.

Operating cash flow was 2.0x net income attributable to the parent (cash conversion); free cash flow of $5.1B (derived as operating cash flow minus the absolute selected capex cash-flow amount; not an issuer-defined or discretionary-cash measure).

Capital returned — dividends paid $1.4B (prior $1.3B), share repurchases $796.0M (prior $3.0B); capital expenditures $3.8B (prior $4.1B) (selected cash-flow amount, not necessarily total capital investment).

Financing cash flow for 2025-06-01 to 2026-05-31 was an inflow of $2,749,000,000, compared with an outflow of $4,019,000,000 for 2024-06-01 to 2025-05-31. Net financing changed from an outflow to an inflow.

“During fiscal year 2026, we repurchased 3.3 million shares of FedEx common stock under ASR or open market transactions at an average price of $233.07 per share for a total of $776 million.”

— Filing statement

“In July 2026, FedEx utilized the $4.1 billion dividend received from FedEx Freight Holding, together with cash on hand, to repurchase approximately $4.9 billion aggregate principal amount of its outstanding debt securities.”

— Filing statement

“On July 20, 2026, our Board of Directors authorized a new stock repurchase program for additional repurchases of up to $5.0 billion of FedEx common stock (“2026 program”).”

— Filing statement

Period net income attributable to the parent / period-end equity, not annualized: 14.0% (prior at 2025-05-31: 14.6%); period net income attributable to the parent / period-end assets, not annualized: 4.5% (prior at 2025-05-31: 4.7%).

Based on current trends, we anticipate revenue and operating profit growth to continue the remainder of calendar year 2026, driven by year-over-year growth in U.S. Domestic and International segments. We expect continued yield and volume improvement to more than offset expense increases, including higher wage and purchased transportation rates, higher costs associated with the newly ratified pilot CBA, which took effect June 29, 2026, and other inflationary matters. We will continue to execute on our business optimization initiatives, including Network 2.0 and our one FedEx program, where we expect to achieve $1.0 billion in structural cost reduction by the end of calendar year 2026. Our capital expenditures during calendar year 2026 are expected to be approximately $3.9 billion, $0.4 billion higher than calendar year 2025.

“Based on current trends, we anticipate revenue and operating profit growth to continue the remainder of calendar year 2026, driven by year-over-year growth in U.S. Domestic and International segments.”

— FedEx ManagementVerified in filing

“We will continue to execute on our business optimization initiatives, including Network 2.0 and our one FedEx program, where we expect to achieve $1.0 billion in structural cost reduction by the end of calendar year 2026.”

— FedEx ManagementVerified in filing

Leverage: Identified debt as of 2026-05-31 (carrying amount): long-term debt including current maturities of $23.5B; noncurrent long-term debt of $23.3B; short-term borrowings of $745.0M. The reported scopes overlap; no non-overlapping subtotal is established. Total debt, net debt and debt-to-equity are therefore not stated.

Liquidity: We held $13.3 billion in cash and cash equivalents at May 31, 2026 and had $2.8 billion in available liquidity under our $1.75 billion three-year credit agreement (the “Three-Year Credit Agreement”) and $1.75 billion five-year credit agreement (the “Five-Year Credit Agreement” and together with the Three-Year Credit Agreement, the “Credit Agreements”), after offsetting outstanding commercial paper borrowings.

Cash flow: Cash flow — operating $8.9B, investing $-3.9B, financing $2.7B.

Working capital: Current assets $27.9B vs. current liabilities $18.9B (current ratio 1.48x). Prior reported balance sheet as of 2025-05-31: $18.4B vs. $15.4B (1.19x).