Summary
FedEx Corporation reported solid financial performance for the nine months ended February 28, 2026, with consolidated revenue up 6% and operating income up 14% year-over-year. This growth was primarily driven by increased yields in U.S. domestic and international priority package services, alongside ongoing cost-reduction initiatives from business optimization programs like DRIVE and Network 2.0. While the Federal Express segment showed robust revenue growth and a significant increase in operating income, the FedEx Freight segment experienced a revenue decline and a substantial drop in operating income, largely due to macroeconomic headwinds and costs associated with its planned separation. The company is navigating a complex operating environment marked by global economic uncertainty, evolving trade policies, and elevated inflation. Despite these challenges, FedEx is strategically positioning itself for the future with plans to spin off FedEx Freight and a pending investment in InPost. The company has also made progress on its business optimization efforts, with projected incremental structural cost reductions of $1.0 billion in 2026. Management remains confident in its liquidity position, supported by strong cash flow from operations and available credit facilities, to meet its financial obligations and strategic investments.
Financial Highlights
43 data points| Revenue | $24.00B |
| Operating Expenses | $22.65B |
| Operating Income | $1.35B |
| Net Income | $1.06B |
| EPS (Basic) | $4.46 |
| EPS (Diluted) | $4.41 |
| Shares Outstanding (Basic) | 236.00M |
| Shares Outstanding (Diluted) | 239.00M |
Key Highlights
- 1Consolidated revenue increased by 6% to $69.7 billion for the nine months ended February 28, 2026, compared to the prior year period.
- 2Consolidated operating income rose by 14% to $3.9 billion for the nine months ended February 28, 2026, driven by yield improvements and cost reductions.
- 3The Federal Express segment demonstrated strong performance, with revenue up 8% and operating income up 29% for the nine-month period.
- 4FedEx Freight segment revenue decreased by 3% and operating income fell 55% for the nine months ended February 28, 2026, impacted by macroeconomic conditions and separation costs.
- 5Significant costs related to the planned spin-off of FedEx Freight were incurred, totaling $460 million for the nine-month period.
- 6Capital expenditures for 2026 are expected to be approximately $4.1 billion, consistent with 2025 levels, with a focus on Network 2.0 and facility modernization.
- 7FedEx announced a conditional agreement to invest approximately $2.6 billion in InPost as part of a consortium, aiming to capitalize on complementary strengths in the e-commerce logistics space.