FedEx Corporation

FDX
Financial 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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Markdown: /stocks/fdx/financials/md · → thesis · → memo