FEDEX (FDX) Company Report

FedEx detailed a three-part transformation—network redesign, digital and AI integration, and ongoing efficiency gains—and set targets of 4% revenue CAGR, 200 bps adjusted operating margin expansion, 14% adjusted operating income CAGR, and $6 billion in adjusted free cash flow by 2029 (ex-Freight).
The company will spin off FedEx Freight in June 2026, leaving FedEx Corp with two reporting segments: U.S. Domestic (≈70% of revenue) and International (≈30%).
FedEx joined a consortium to bid for InPost, a European parcel locker operator, expecting the deal to be accretive to earnings in the first year post-close (targeted H2 2026) while remaining competitor-separate.
Network initiatives include “Tri-Color” air redesign and “Network 2.0” surface integration, already delivering ~10% lower pickup & delivery costs in U.S. and ~20% higher hub productivity in Europe.
2029 financial targets include $8 billion in operating income, an 8% operating margin, and $25 GAAP EPS (ex-Freight), up from a FY 2026 baseline of $5 billion income, 6% margin, and $15 EPS.

7 days ago

Transcript

FedEx unveils long-term financial plan and transformation strategy at Investor Day 2026

FDX

Guidance Update

M&A

FedEx outlined four strategic priorities (growth in high-margin verticals, digital & AI, network transformation, ongoing efficiency) to drive 4% revenue CAGR, 200 bps margin expansion, 14% adjusted operating income CAGR, and generate $6 billion in free cash flow by FY 2029.
Joined a consortium to make a takeover bid for InPost, targeting accretive earnings in year one post-completion in H2 2026, while maintaining operational independence.
Emphasized FedEx Dataworks’ scale—2 petabytes of daily data—to deliver predictive insights, SaaS products (e.g., RouteSmart), and supply chain orchestration services, aiming to move up the value chain.
Europe transformation has delivered $600 million in cost reductions through FY 2025, reorganized operations under DRIVE & One FedEx, and targets $650 million of operating income improvement by 2029.
FY 2029 financial targets include $98 billion consolidated revenue, $8 billion operating income (8% margin), U.S. domestic margin 10% on $64 billion revenue, international margin 8% on $29 billion revenue, and a 4% CapEx-to-revenue ratio.

7 days ago

Transcript

FedEx unveils 2026–29 strategic and financial roadmap at Investor Day

FDX

Guidance Update

M&A

Delivered $4 billion in structural savings in FY 2023–25 and plans an additional $2 billion by end of 2027 through DRIVE, Network 2.0, and One FedEx initiatives.
Defined four strategic priorities through 2029: grow high-margin B2B/B2C and premium air freight; scale digital and AI capabilities; transform air (Tri-Color) and surface (Network 2.0) networks globally, with Europe as a key value unlock; and embed ongoing efficiency gains.
Joined a consortium to acquire InPost, a profitable European parcel-locker operator, targeting close in H2 2026; the deal is expected to be accretive in year one post-completion, while FedEx and InPost remain independent competitors.
Issued FY 2029 targets of 4% revenue CAGR, 200 bps adjusted operating-margin expansion, 14% adjusted operating-income CAGR, and $6 billion of adjusted free cash flow, aiming for $98 billion in revenue, $8 billion in operating income (8% margin), and $25 EPS (vs. $85 billion revenue, $5 billion operating income, and $15 EPS in FY 2026).
Reinforced capital discipline with a planned CapEx-to-revenue ratio of ~4% by 2029, down from 4.6% in FY 2025, to boost ROIC and free cash flow.

7 days ago

Transcript

FedEx outlines Investor Day 2026 strategy and targets

FDX

Guidance Update

New Projects/Investments

FedEx detailed a four-pillar strategy—grow high-margin verticals, transform the network, build on data/tech, and sustain efficiency via the DRIVE framework—to power its integrated industrial network.
Set FY26–29 targets of ~4% revenue CAGR, ~14% adjusted operating income CAGR (driving 200 bps margin expansion), and ~$6 B adjusted free cash flow in 2029.
Announced Network 2.0 and One FedEx surface integration will deliver $2 B in savings by end-2027, with ~25% of U.S. and Canada ADV markets optimized to date.
Emphasized a digital backbone with standardized processes, digitized workflows, and 200+ AI use cases, targeting full data consolidation in 2027 to enhance decision-making.
Europe transformation to drive ~$650 M operating income improvement by 2029, building on $600 M of structural cost savings achieved in FY23–25.

7 days ago

Presentation

FedEx hosts 2026 Investor Day

FDX

Guidance Update

Debt Issuance

FedEx hosted its 2026 Investor Day, detailing a strategy centered on four strategic priorities: growing in high-margin verticals, building digital and AI capabilities, transforming its network, and delivering ongoing efficiency gains.
The company introduced 2029 financial targets, including ≈$98 billion in revenue, ≈$8 billion in operating income, ~8% operating margin, ~11% ROIC, ~4% CapEx to revenue, and ~$6 billion in adjusted free cash flow.
The planned spin-off of FedEx Freight remains on track for June 1, 2026, following a $3.7 billion senior notes issuance on February 5, 2026.
FedEx now expects its third fiscal quarter adjusted EPS to exceed consensus, driven by strong Peak season performance.

7 days ago

Press Release

FedEx joins consortium for InPost all-cash takeover bid

FDX

M&A

On Feb. 9, 2026, FedEx and a consortium agreed to a recommended all-cash offer of €15.60 per share (cum dividend) for all issued InPost shares.
Post-completion ownership will be FedEx 37%, Advent 37%, A&R Investments 16% and PPF Group 10%, valuing FedEx’s stake at approximately $2.6 billion.
FedEx plans to fund its $2.6 billion investment from available cash or existing/new liquidity sources.
The offer is conditional upon customary closing conditions, including regulatory approvals.

Feb 9, 2026, 9:38 PM

8-K

FedEx joins consortium in recommended all-cash offer for InPost

FDX

M&A

Takeover Bid

Consortium of Advent, FedEx, A&R and PPF proposes recommended all-cash offer at EUR 15.60 per share, valuing InPost at EUR 7.8 billion (50% premium to undisturbed share price as of 2 January 2026).
Post-transaction ownership will be: Advent 37%, FedEx 37%, A&R 16% and PPF 10%.
The offer is unanimously recommended by InPost’s Board and backed by shareholders representing 48% of shares.
Transaction is expected to complete in H2 2026, with InPost retaining its brand, head office in Poland and current management structure.

Feb 9, 2026, 7:59 AM

Press Release

FedEx launches Retail Momentum Index with Dun & Bradstreet

FDX

Product Launch

FedEx Dataworks and Dun & Bradstreet have launched the Retail Momentum Index, combining shipping data and business signals as a near–real–time leading indicator of U.S. retail activity.
The Index integrates FedEx’s surface and air shipping data with Dun & Bradstreet’s maritime volumes, container delays, and business entity insights to detect inflection points ahead of government reports.
Q4 2025 data show year-over-year retail momentum contraction improved to -10.3%, compared to -21.0% in Q4 2024.
Returns volumes declined 38.4% from 2023–24 and 54.5% from 2024–25, indicating stronger demand quality.
Retail activity is projected to remain broadly stable through H1 2026, with credit health improving after three Federal Reserve rate cuts in 2025.

Feb 5, 2026, 9:00 PM

Press Release

FedEx shares rise after multiple analyst upgrades

FDX

Wells Fargo upgraded FedEx to Overweight and raised its price target to $380, a 28.8% increase over its prior target.
Baird raised its FedEx target to $427 and projects an Express margin expansion of ~200 bps, implying potential earnings power of $21–$27 per share.
FedEx’s market cap is $82.41 billion, fiscal 2025 revenue was $90.09 billion, operating margin 10.77%, and net margin 4.81%; the Federal Express segment represents 86% of total revenue.
Other recent analyst actions include Rothschild & Co’s downgrade to Neutral with a $317 target, Bernstein’s Market Perform at $306, and BofA’s Neutral at $315.

Feb 3, 2026, 2:18 PM

Barron's

FedEx offers AI-powered post-purchase tracking and returns

FDX

Product Launch

FedEx launches FedEx Tracking+ and FedEx Returns+, AI-powered, white-labeled tools embedded in shippers’ own digital channels to streamline post-purchase experiences.
Key capabilities include automated responses to delivery and return inquiries, performance insights, pattern and anomaly detection, and automated policy adjustments based on merchant-defined rules.
parcelLab reports 42% fewer “Where is My Order” inquiries, 85% higher customer retention, and 42% more repeat purchases for tracking users; returns users see 3× repeat purchases, 60% higher average order value, and 17% fewer “Where is My Return” inquiries.