FedEx Corporation
FDXFinancial Analysis · Updated May 12, 2026 · Coverage 2026-Q2
TTM ROIC
10%
FY2025 · NOPAT / Invested Capital; Invested Capital = Total Equity + Total Debt - Cash; NOPAT = Operating Income × (1 - effective tax rate ~5-7%) · WACC ~8% · Moat spread +2pp
Financial Snapshot
ticker: FDX step: 04 generated: 2026-05-12 source: quick-research
FedEx Corporation (FDX) — Financial Snapshot
Income Statement Summary
| Metric | FY2023 | FY2024 | FY2025 | FY2026E |
|---|---|---|---|---|
| Revenue | $90.2B | $87.7B | $87.9B | $89-91B |
| Operating Margin (adj) | 5.5% | 6.4% | 6.8% | 7.5-8.0% |
| Operating Margin (GAAP) | 4.3% | 6.0% | 5.9% | 7.0%+ |
| Net Income | $3.97B | $4.33B | $4.40B | $4.80-5.20B |
| GAAP Diluted EPS | $15.48 | $17.21 | $17.95 | $19.00-20.00 |
| Adjusted Diluted EPS | $14.60 | $17.80 | $18.30 | $16.05-16.85 (post Freight spinoff) |
Note: FY26 adj EPS guidance lower due to FedEx Freight spinoff removing earnings. FY26 fiscal year ends May 2026; June 2026 = freight spin.
Cash Flow & Balance Sheet (FY2024)
| Metric | Value |
|---|---|
| Operating Cash Flow | ~$8.3B |
| Free Cash Flow | ~$3.8B |
| FCF Conversion | ~90% (vs 65% historical) |
| Capex | $4.1B (vs $5.2B prior year, lowest in 10+ years) |
| Cash & Equivalents | ~$5.2B |
| Total Debt | ~$20B |
| Net Debt/EBITDA | ~1.5x |
Key Ratios (approximate)
- P/E: ~16x | EV/EBITDA: ~9x | FCF Yield: ~5%
- Revenue Growth (TTM): ~0.2% | Op Margin: ~6.8%
- Dividend Yield: ~2.0% | Buybacks: ~$2.5B annual
Growth Profile
DRIVE delivered $4B cost savings (2-year target hit FY25). Network 2.0 integrating Express + Ground in 290+ locations. FedEx Freight spinoff (June 2026) will create pure-play parcel co. FY26 guides another $1B cost reduction. Operating leverage from volume recovery + structural cost savings + Network 2.0 = multi-year margin expansion thesis.
Forward Estimates
- FY 2026 (ending May 2026): Revenue $89-91B; adj EPS $16.05-16.85 (post Freight); op margin 7.5-8.0%
- FY 2027: First full year as parcel-only; consensus adj EPS $18-19; op margin 8.5-9.5%
- Long-term: UPS-like 10%+ op margin = bull thesis
Deeper Financial Analysis
The fundamental tier adds 9 additional research dimensions for $FDX.
Revenue Breakdown
Segment revenue, geographic mix, product-line contribution margins, and cohort dynamics.
Financial Trends
Quarter-over-quarter momentum, leading indicators, and inflection point analysis.
Balance Sheet
Debt structure, liquidity runway, dilution risk, and working capital dynamics.
Capital Allocation
Buyback cadence, M&A appetite, dividend policy, and reinvestment priorities.
Returns on Capital (ROIC)
Multi-year ROIC vs. WACC, marginal returns on reinvestment, sales-to-invested-capital efficiency, and moat spread.
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