FEDEX (FDX) Company Report

FedEx delivered 7% revenue growth, $4.82 adjusted EPS (+19% YoY), 17% adjusted operating income growth and 60 basis points margin expansion in Q2 FY26.
FedEx Express & Ground (FEC) recorded 8% revenue growth led by 12% U.S. domestic package strength, with 24% adjusted operating income growth and 100 bps margin expansion.
FedEx Freight revenue declined 2% amid weaker LTL volumes, with adjusted operating income down $70 million and margins contracting 3 pp; the Freight spin-off remains on track for June 1, 2026.
Management raised FY26 adjusted EPS guidance to $17.80–$19.00, up from $17.20–$19.00, reflecting headwinds from MD-11 groundings, LTL softness, and higher incentive accruals.

Dec 18, 2025, 10:30 PM

Transcript

FedEx reports Q2 FY26 results

FDX

Earnings

Guidance Update

FedEx reported consolidated Q2 FY26 revenue of $23.5 B (up 7% YoY) and adjusted EPS of $4.82 (up 19%), driven by U.S. domestic package yield and volume strength.
The Federal Express segment generated revenue of $20.4 B (+8% YoY) and adjusted operating income of $1.564 B (+24%), while FedEx Freight saw revenue of $2.1 B (−2%) and adjusted operating income of $242 M (−22%).
FedEx Freight separation remains on track for June 1, 2026, with its leadership team in place and an expected NYSE listing under ticker FDXF.
For FY26, FedEx lifted its consolidated revenue growth outlook to 5–6% and increased its non-GAAP EPS guidance to $17.80–$19.00.

Dec 18, 2025, 10:30 PM

Presentation

FedEx reports Q2 FY2026 results

FDX

Earnings

Guidance Update

Share Buyback

Adjusted EPS of $4.82 (+19% YoY), consolidated revenue up 7% YoY, with margin expanding 60 bps; FedEx Express revenue +8% and adj. op. income +24% (margin +100 bps); FedEx Freight revenue -2% and adj. op. income down $70 M (margin -3 ppts).
Raised FY2026 adjusted EPS guidance to $17.80–$19.00 (from $17.20–$19.00); expects consolidated revenue growth of 5–6%, with FedEx Express ~7% growth at midpoint and Freight flat to slight decline.
Returned capital with $300 M of share repurchases in Q2 (remaining authorization $1.3 B), increased dividend, and targets $4.5 B CapEx for FY2026 (YTD $1.4 B); voluntary pension contribution cut to $275 M.
On track to spin off FedEx Freight on June 1, 2026 as a separate public company; submitted confidential Form 10 and plans an April 8, 2026 investor day, with FedEx Corp retaining up to 19.9% stake.
Operational strength driven by B2B services (nearly half of revenue growth), scaling AI across 500,000+ employees, and peak season on track with mid-single-digit daily volume growth despite MD-11 fleet grounding.

Dec 18, 2025, 10:30 PM

Transcript

FedEx reports Q2 2026 results

FDX

Earnings

Guidance Update

In Q2 FY2026, FedEx delivered $4.82 adjusted EPS, up 19% YoY, on 7% consolidated revenue growth, driving 60 bps margin expansion and 17% adjusted operating income growth.
Raised FY2026 adjusted EPS guidance to $17.80–$19.00 from $17.20–$19.00, reflecting strong first-half execution despite MD-11 grounding and LTL headwinds.
FedEx Freight spin-off remains on track for June 1, 2026; confidential Form 10 filed, FedEx Corp to retain up to 19.9% of shares for subsequent monetization.
Network transformation on track: 24% of eligible volume through Network 2.0 facilities, targeting 65% by next peak, with $1 billion in annual cost savings expected.

Dec 18, 2025, 10:30 PM

Transcript

FedEx reports Q2 fiscal 2026 results

FDX

Earnings

Guidance Update

Share Buyback

FedEx delivered 7% revenue growth to $23.5 billion and GAAP diluted EPS of $4.04 (adjusted EPS $4.82) in Q2 ended November 30, 2025.
Upgraded FY2026 guidance to 5–6% revenue growth with adjusted EPS of $14.80–$16.00 before MTM adjustments and $17.80–$19.00 after excluding spin-off and other costs.
Generated $6.6 billion in cash on hand and repurchased $276 million of shares (1.2 million shares), with $1.3 billion remaining under authorization.
On track to spin off FedEx Freight as a separate NYSE-listed company on June 1, 2026, and reaffirmed $1 billion of structural cost savings and $4.5 billion of capital spending for FY2026.

Dec 18, 2025, 9:10 PM

8-K

FedEx reports strong Q2 fiscal 2026 earnings growth

FDX

Earnings

Guidance Update

Share Buyback

FedEx delivered $23.5 billion in revenue and $1.14 billion in adjusted net income (Diluted EPS of $4.82) in Q2 FY 2026, up from $22.0 billion revenue and $0.99 billion adjusted net income (EPS $4.05) in Q2 FY 2025.
GAAP operating income rose to $1.38 billion (from $1.05 billion), with a 6.9% adjusted operating margin versus 6.3% a year ago.
Full-year FY 2026 guidance was raised to 5%–6% revenue growth and EPS of $14.80–$16.00 before adjustments (or $17.80–$19.00 excluding spin-off and other costs).
The FedEx Freight spin-off remains on track for a June 1, 2026 separation into a publicly traded company.
Share repurchases totaled $276 million in Q2, with $1.3 billion remaining under the 2024 authorization; cash on hand was $6.6 billion.

Dec 18, 2025, 9:07 PM

Press Release

FedEx projects strong Q2 profits, shares surge

FDX

Earnings

Guidance Update

Demand Weakening

Guidance Update: FedEx expects fiscal Q2 adjusted EPS above $4.05, sending shares up 5–5.8%.
Revenue Mix: In fiscal 2025, Federal Express made up 86% of revenue, FedEx Freight 10%, and other services the remainder.
Financial Health Concerns: Altman Z-Score of 2.53 places the company in a grey area for potential distress; ROIC of 6.29% remains below WACC.
Profitability Metrics: Operating margin at 6.87%, net margin 4.65%, and EBITDA margin 11.96%.

Nov 11, 2025, 6:09 PM

Bloomberg

FedEx outlines network transformation, cost reduction, and resilience at Baird 55th Annual Global Industrial Conference

FDX

FedEx President and CEO Raj Subramaniam highlighted the company’s $2 trillion global commerce network connecting 3 million shippers to 225 million consumers, underscoring its strategic value and cultural resilience.
For the first time in its history, FedEx reduced absolute structural costs and achieved higher operating income despite revenue declines by modernizing its U.S. (Network 2.0) and international (Tricolor) networks and unifying operations under “One FedEx”.
The company expects a $1 billion FY2025 profit headwind from trade policy, including $700 million due to lower international revenue, but cites a 22 % increase in U.S. outbound air freight and AI-driven customs classification as competitive advantages.
In response to the MD-11 grounding, FedEx voluntarily grounded its 28 MD-11s for inspection, leveraging 25 operational aircraft, spare jets, route optimization, and commercial partnerships to sustain peak-season service.
FedEx’s planned spin-off of FedEx Freight aims to unlock shareholder value by creating two specialized, capital-focused companies with dedicated leadership to better serve their respective markets.

Nov 11, 2025, 4:50 PM

Transcript

Elite Express reports Q3 2025 results

FDX

Earnings

First earnings release since IPO, delivered first quarterly gross profit of $6,817 versus a loss of $29,789 in Q3 2024.
Revenue of $633,865 for Q3 2025, up 7.4% year-over-year, driven by activity-based revenue growth.
Net loss widened to $185,881 in Q3 2025 from $76,526 in Q3 2024.
General and administrative expenses rose 285.9% to $151,600, reflecting costs of being a newly public company.
CEO plans to expand fleet, leverage technology, and diversify beyond FedEx to drive long-term growth.

Oct 14, 2025, 10:10 AM

Press Release

FedEx stock downgraded amid Freight segment headwinds

FDX

Demand Weakening

JPMorgan downgraded FedEx to Neutral from Overweight, cutting its price target to $274 over structural challenges in its less-than-truckload Freight segment.
The LTL Freight business faces soft demand, overcapacity, and profitability pressures, particularly in Europe following the TNT Express acquisition.
Freight represents 10% of FedEx’s revenue, while the core Federal Express segment accounts for 86%.
Analysts retain a Moderate Buy consensus with 12 Buys, 6 Holds, and 2 Sells despite the downgrade.

Oct 8, 2025, 8:11 AM

CNBC

Earnings Transcripts

Quarterly earnings call transcripts for FEDEX.

Q2 2026

Dec 18, 2025

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Q1 2026

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FEDEX (FDX)

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Brie A. Carere

Gina F. Adams

John A. Smith

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Amy B. Lane

Frederick P. Perpall

Joshua Cooper Ramo

Marvin R. Ellison

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