10-KPeriod: FY2026

FEDEX CORP Annual Report, Year Ended May 31, 2026

Filed July 20, 2026For Securities:FDX

Summary

FedEx Corporation's 2026 10-K filing reveals significant strategic shifts, including the spin-off of its less-than-truckload (LTL) freight services business and a change in its fiscal year-end to December 31. These changes are part of a broader strategy to streamline operations and focus on core express and international delivery services. The company reported an 8% increase in consolidated revenue to $94.72 billion, driven by improved yields, higher U.S. domestic package volumes, and increased fuel surcharges. Operating income saw a 5% increase to $5.46 billion, though this was impacted by substantial separation and business optimization costs. Key financial highlights for fiscal year 2026 include a substantial increase in cash and cash equivalents to $13.3 billion, bolstered by proceeds from debt issuances and lower stock repurchases compared to the prior year. The company also announced a new $5 billion stock repurchase program. Despite ongoing investments in network modernization and efficiency initiatives like Network 2.0, FedEx is navigating a complex economic environment characterized by inflation and geopolitical uncertainties. The company reiterates its commitment to long-term growth and profitability through strategic capital allocation and operational improvements.

Key Highlights

  • 1Consolidated revenue increased by 8% to $94.72 billion in fiscal year 2026, driven by improved yields, higher U.S. domestic package volumes, and increased fuel surcharges.
  • 2Operating income grew by 5% to $5.46 billion, with the Federal Express segment showing a significant 21% increase in operating income.
  • 3FedEx completed the spin-off of its FedEx Freight business on June 1, 2026, no longer consolidating it as a reportable segment.
  • 4The company shifted its fiscal year-end from May 31 to December 31, effective June 1, 2026.
  • 5Cash and cash equivalents increased significantly to $13.3 billion as of May 31, 2026.
  • 6A new stock repurchase program of up to $5.0 billion was authorized on July 20, 2026.
  • 7Capital expenditures for calendar year 2026 are projected at approximately $3.9 billion, with a focus on Network 2.0 initiatives and facility modernization.

Frequently Asked Questions

FedEx executed two major strategic changes: the spin-off of its FedEx Freight business and the change of its fiscal year-end from May 31 to December 31. These moves aim to streamline operations and refocus the company on its core express and international delivery services.

FedEx experienced an 8% increase in consolidated revenue, reaching $94.72 billion, and a 5% increase in operating income to $5.46 billion. The Federal Express segment, in particular, saw a 21% rise in operating income, indicating strong performance in its core express services. However, the company also incurred significant costs related to the spin-off and business optimization initiatives.

FedEx expects its capital expenditures for calendar year 2026 to be approximately $3.9 billion, which is a $0.4 billion increase compared to calendar year 2025. This increase is primarily driven by accelerated investments in the Network 2.0 initiatives and the modernization of its U.S. Domestic and International facilities.

Following the spin-off on June 1, 2026, FedEx Freight is no longer consolidated as a reportable segment. The company has realigned its reporting structure to two new segments: Express U.S. Domestic and Express International. This change did not impact FedEx's consolidated results of operations or financial position for the periods presented, but historical financial statements will be presented reflecting the prior segment structure.