NYSE: FDX · Air Freight & Logistics
FedEx
FedEx provides express, ground and freight transportation worldwide through Federal Express, with about 700 aircraft and over 180,000 motorized vehicles. Fiscal 2026 (to May) revenue was $94.7 billion, up 8%, and net income $4.4 billion ($18.55 per diluted share). On June 1, 2026 it spun off 80.1% of FedEx Freight, its less-than-truckload business, as FedEx Freight Holding (FDXF). It is changing its fiscal year-end to December 31, with a seven-month transition period through December 2026. In July 2026 it agreed to sell FedEx Supply Chain to CMA CGM for $1.4 billion.
Last updated
Analysis last edited: October 31, 2026 · Financial data fetched: October 24, 2026 09:20 (SEC EDGAR) · Source 10-K filed: July 20, 2026
Built on10-K FY2026 · filed 2026-07-2010-Q (quarter ended 2026-09-30) · filed 2026-10-28Proxy statement (2026)
Next update expectedAfter FY2027’s 10-K is filed (roughly 60–90 days after fiscal year end (sooner for larger filers)), financials and analysis will be refreshed.
01
At a glanceFrom SEC data
Eight headline measures, each placed among the companies covered on this site.
- Revenue growthCAGRSmooths out year-to-year swings into "grew X% a year on average." Makes growth pace comparable across companies of very different sizes.
- 2.4%
- Operating marginOperating marginHow many cents of operating profit are left per dollar of revenue. Reflects pricing power and cost structure.
- 5.8%
- ROIC minus WACCROIC − WACC spreadThe difference between ROIC and WACC. Consistently positive implies value creation; consistently negative implies value destruction.
- -0.4 pts
- Net debt ÷ EBITDAEBITDAOperating income with D&A added back. A rough proxy for cash-generating power that’s less distorted by capital intensity, depreciation method, or financing/tax differences than net income.
- 1.2x
- Cash conversionOperating CF ÷ net income (cash conversion)How much of reported profit shows up as actual cash. 1x or higher means profit is backed by cash.
- 2.01x
- Dividend raisesDividend per shareTotal annual dividend paid per share (sum of all declared payments for the year).
- 2 of 5
- P/E todayP/EShare price ÷ EPS — how many years of current earnings the stock price represents. This site uses the period-end figure as reported in the filing.
- 24.1x
- Betaβ (beta)How much a stock moves, on average, for a 1% move in the overall market. Above 1 means more volatile than the market, which raises the return shareholders require. This site computes it from about 2.5 years (roughly 130 weeks) of weekly returns, built from Yahoo Finance daily prices, regressed against an S&P 500 ETF (SPY) as the market proxy, then applies the well-known long-run mean-reversion adjustment (0.67 × β + 0.33) as the WACC default.
- 0.91
Higher than 10% of 372 non-financial companies
Average yearly growth over the years shown
Higher than 17% of 311 non-financial companies
Latest fiscal year (FY2026)
Higher than 28% of 311 non-financial companies
Return on capital above (or below) its estimated cost
Higher than 40% of 304 non-financial companies
Below 0 means more cash than debt
Higher than 74% of 349 non-financial companies
Operating cash flow ÷ net income
Years the dividend per share rose, of the last 5
Latest close 2026-11-04; trailing 12 months to 2026-09-30
Above 1 = moves more than the market
Each marker shows where this company sits among the non-financial companies covered on this site, not all listed companies (left = lowest, right = highest). A high position is not automatically good — for net debt ÷ EBITDA, higher means more debt. Details and formulas are in the sections below and in How to read this.
02
Valuation todayFrom SEC data
Price-based measures at the latest close, next to the same measures at the last fiscal year-end.
Share price$322.88close on 2026-11-04
Market cap$77.49B
- P/EP/EShare price ÷ EPS — how many years of current earnings the stock price represents. This site uses the period-end figure as reported in the filing. today
- 24.1x
- P/BP/BShare price ÷ book value per share. Below 1x means the market values the company below its accounting net worth. This site uses the closing price nearest the fiscal year-end and highlights sub-1x readings. today
- 2.4x
- EV/EBITDAEV/EBITDAEnterprise value (≈ market cap + interest-bearing debt − cash) as a multiple of EBITDA — roughly, "how many years of EBITDA to buy the whole company." Lower is generally viewed as cheaper, and it’s more comparable than P/E across companies with different debt loads or depreciation policies. This site excludes noncontrolling interests from the EV calculation. today
- 9.1x
- FCF yieldFree cash flow (FCF)Operating CF minus capital expenditures — cash generated by the business after funding its own investment, available for dividends, buybacks, acquisitions, or debt paydown. Acquisitions and securities purchases (also in investing CF) are not subtracted, so FCF can be positive in a year when total investing CF exceeds operating CF. today
- 6.6%
- Dividend yieldDividend per shareTotal annual dividend paid per share (sum of all declared payments for the year). today
- 1.8%
At FY2026 year-end: 17.9x
Earnings: trailing 12 months to 2026-09-30
At FY2026 year-end: 2.5x
Book value at FY2026 year-end
At FY2026 year-end: 9.3x
EBITDA for FY2026
At FY2026 year-end: 6.4%
Free cash flow for FY2026
Dividends per share for FY2026
“Today” uses the latest closing price (2026-11-04, Yahoo Finance daily closing prices) and shares outstanding at the last fiscal year-end. The rest of this page — including the financial table and ROIC vs. WACC — uses fiscal year-end prices. These are reference figures, not a judgment of whether the stock is cheap or expensive.
03
What changed since last earningsFrom SEC data
The latest reported quarter against the same quarter a year earlier, the balance sheet against the previous quarter-end, and what management said in its latest earnings release.
Quarter ended Sep 30, 2026.
- Revenue$20.43B → $22.86B (vs. a year earlier)↑ +11.9%$20.43B → $22.86B (vs. a year earlier)
- Operating margin4.8% → 4.7% (vs. a year earlier)↓ −0.1 pts4.8% → 4.7% (vs. a year earlier)
- Net income$920M → $290M (vs. a year earlier)↓ −68.5%$920M → $290M (vs. a year earlier)
- Diluted EPS$3.89 → $1.21 (vs. a year earlier)↓ −68.9%$3.89 → $1.21 (vs. a year earlier)
- Cash$8.01B → $7.96B (vs. previous quarter-end)↓ −0.6%$8.01B → $7.96B (vs. previous quarter-end)
Source: Form 10-Q ↗ (SEC XBRL). Long-term debt is the tagged long-term debt figure and leaves out short-term borrowings.
From the earnings release of Oct 28, 2026.
Key changes
Sold FedEx Supply Chain to CMA CGM for $1.4B. Source sentence
1 On October 1, 2026, FedEx completed the sale of its FedEx Supply Chain business to CMA CGM Group for $1.4 billion as part of a strategic portfolio streamlining effort.
Written by AI. A line appears only if its figures and direction match the quoted sentence, which an automatic check confirms. Companies' outlooks are their own and may not be met. Read the release ↗
04
Company profileFrom SEC dataShow
- Legal name
- FEDEX CORP
- Headquarters
- MEMPHIS, TN
- Incorporated in
- Delaware
- Fiscal year end
- 05/31
- Exchange & ticker
- NYSE: FDX
- Industry
- Air Freight & Logistics
- CIK
- 1048911
- Website
- https://www.fedex.com/ ↗
Workforce (as of FY2026 year-end)
Employees
452,000
Source: Form 10-K (FY2026) cover page and business description
05
Earnings calendarFrom SEC dataShow
When the company reports each quarter: the quarter-end date, the day results were released, and when the 10-Q or 10-K was filed.
Next report
Q3 FY2027
Quarter end: February 2027. In past years, Q3 results were released 19–21 days after quarter end (Mar 19, 2026; Mar 20, 2025; Mar 21, 2024). No date has been announced in the sources this site uses.
Reporting pattern
- Fiscal year ends around May 31.
- Reports four times a year: three quarterly reports (10-Q) and an annual report (10-K) for Q4.
- Earnings releases came 18–51 days after quarter end over the last 12 quarters.
| Quarter | Quarter ended | Earnings release (8-K) | Report filed (10-Q / 10-K) |
|---|---|---|---|
| Q2 FY2027 | Sep 30, 2026 | Oct 28, 2026 (+28 days) | Oct 28, 2026 10-Q (+28 days) |
| Q4 FY2026 | May 31, 2026 | Jul 21, 2026 (+51 days) | Jul 20, 2026 10-K (+50 days) |
| Q3 FY2026 | Feb 28, 2026 | Mar 19, 2026 (+19 days) | Mar 19, 2026 10-Q (+19 days) |
| Q2 FY2026 | Nov 30, 2025 | Dec 18, 2025 (+18 days) | Dec 18, 2025 10-Q (+18 days) |
| Q1 FY2026 | Aug 31, 2025 | Sep 18, 2025 (+18 days) | Sep 18, 2025 10-Q (+18 days) |
| Q4 FY2025 | May 31, 2025 | Jun 24, 2025 (+24 days) | Jul 21, 2025 10-K (+51 days) |
| Q3 FY2025 | Feb 28, 2025 | Mar 20, 2025 (+20 days) | Mar 20, 2025 10-Q (+20 days) |
| Q2 FY2025 | Nov 30, 2024 | Dec 19, 2024 (+19 days) | Dec 19, 2024 10-Q (+19 days) |
| Q1 FY2025 | Aug 31, 2024 | Sep 19, 2024 (+19 days) | Sep 19, 2024 10-Q (+19 days) |
| Q4 FY2024 | May 31, 2024 | Jun 25, 2024 (+25 days) | Jul 15, 2024 10-K (+45 days) |
| Q3 FY2024 | Feb 29, 2024 | Mar 21, 2024 (+21 days) | Mar 21, 2024 10-Q (+21 days) |
| Q2 FY2024 | Nov 30, 2023 | Dec 19, 2023 (+19 days) | Dec 19, 2023 10-Q (+19 days) |
Source: SEC EDGAR filing history. Release dates are the dates the earnings release was furnished to the SEC on Form 8-K (Item 2.02), which is normally the day results are announced. For a quarter whose 10-Q or 10-K isn’t filed yet, the date is the latest Item 2.02 8-K since the previous report, which may be a preliminary or other results-related update. Fiscal years are labeled by the calendar year in which they end.
06
Flagship products & servicesSite analysis
Federal Express
U.S. domestic package
Examples: Priority, deferred, ground
$54.6B of fiscal 2026 revenue; ground was $37.3B.
Federal Express
International package
Examples: International priority and economy
Export package revenue $15.6B plus international domestic $4.7B.
Federal Express
Freight
Examples: U.S. and international air freight
$6.1B in fiscal 2026.
Other
FedEx Office, FedEx Supply Chain, FedEx Dataworks
Examples: About 2,000 FedEx Office stores
FedEx Supply Chain is being sold to CMA CGM.
From the FY2026 Form 10-K.
U.S. and worldwide share of flagship products/services
The FY2026 10-K gives no market share figure for FedEx; it describes FedEx Freight (now spun off) as North America’s largest less-than-truckload carrier in an officer biography only.
07
Recent strategic focusSite analysis
Recent developments.
Q3 2026 (calendar)
FedEx changed its fiscal year end to December 31 from June 1, 2026. In the quarter ended September 30, revenue was $22.9B (vs $20.4B); GAAP EPS $1.21 after a $1.2B loss on its 19.9% FedEx Freight stake, and adjusted EPS $3.74 (vs $2.93). It repurchased $2B of stock in June–September and raised its calendar 2026 adjusted EPS outlook to $18.00–18.60.
Source: Q3 2026 earnings release (quarter ended September 30, 2026)
Fiscal 2026
Revenue $94,720M (+8%); operating income $5,463M; diluted EPS $18.55 versus $16.81.
Source: Form 10-K FY2026
FedEx Freight spin-off
Completed June 1, 2026; FedEx keeps 19.9% of FedEx Freight Holding.
Source: Form 8-K 2026-06-01
Portfolio changes
Sold FedEx Supply Chain to CMA CGM for about $1.4B, completed October 1, 2026, and joined a consortium offer for InPost.
Source: Form 10-K FY2026; Q3 2026 earnings release (quarter ended September 30, 2026)
Management
CFO John Dietrich stepped down June 1, 2026, with Claude Russ as interim CFO; AutoZone CFO Jamere Jackson becomes CFO on November 30, 2026.
Source: Forms 8-K 2026-04-13 and 2026-10-26
Capex ÷ D&A (FY2026)
0.87x
Roughly matches depreciation — mostly maintenance/replacement
formulacapital expenditures ÷ depreciation & amortization
e.g.$3,809M ÷ $4,369M = 0.87x
termsCapital expenditures (capex) · Depreciation & amortization (D&A)
M&A spend (6-year total)
$228M
Latest year: $0
Cash-flow-statement spending on acquisitions, net of cash acquired
Where the money goes, over time
Unit: $M. Capex went from $5.88B in FY2021 to $3.81B in FY2026
- Capex
- M&A spend
formulacapital expenditures ÷ depreciation & amortization
termsCapital expenditures (capex) · Depreciation & amortization (D&A)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-07-20
08
Key figures at a glanceFrom SEC data
FY2021–FY2026, 6 years.
Revenue (FY2026)
$94.72B
As reported in the 10-K
Revenue CAGR (5 years)
+2.4%
formula(last-period revenue ÷ first-period revenue) ^ (1 ÷ years) − 1
e.g.($94,720M ÷ $83,959M) ^ (1÷5) − 1 = 2.4%
termsCAGR · ^ (exponent) · Revenue (net sales)
Operating margin (FY2026)
5.8%▼caution
-1.2pt vs. 5 years ago
formulaoperating income ÷ revenue × 100
e.g.$5,463M ÷ $94,720M × 100 = 5.8%
ROE (FY2026)
14.8%▲favorable
6-year average: 16.4%
As reported in the 10-K
P/B (FY2026 end)
2.52x
formulafiscal year-end closing price ÷ book value per share
e.g.$331.79 ÷ $131.86 = 2.52x
Period-end (fiscal year-end) value, not today's P/B
EV/EBITDA (FY2026 end)
9.3x
formula(market cap + interest-bearing debt − cash and equivalents) ÷ (operating income + depreciation & amortization)
e.g.($79,629M + $24,950M − $13,311M) ÷ ($5,463M + $4,369M) = 9.3x
termsEV/EBITDA · Market capitalization · Interest-bearing debt · EBITDA · Depreciation & amortization (D&A)
Period-end (fiscal year-end) value, not today's multiple
- ―
Revenue grew +2.4% a year over 5 years (modest growth)
From $83.96B in FY2021 to $94.72B in FY2026. The annualized rate (CAGR) makes it possible to compare growth pace across companies of different sizes.
- ▼
Operating margin declined: 7.0% → 5.8%
How much operating profit is left per $100 of revenue. It moved -1.2 points over 5 years — pricing power, cost control, and product mix all show up here.
- ―
Equity ratio is 32.0% (a middling level)
The share of total assets funded by equity rather than debt. 50%+ is often read as low bankruptcy risk, though the right level varies by industry (real estate and leasing run lower, for instance).
- ▲
Free cash flow was positive in 6 of 6 years
Operating cash flow minus capital expenditures: the cash left over after funding the business’s own investment, available for dividends, buybacks, acquisitions, or debt paydown. A negative year can mean heavy investment, or weak core earnings — worth distinguishing.
- ▲
ROE averaged 16.4% over 6 years (latest: 14.8%)
How much profit was generated on shareholders’ equity. Roughly 10%+ is often cited as solid for a U.S. company, though this varies a lot by industry and capital intensity.
09
Business modelSite analysis
Business Model Canvas
The whole company in nine blocks. Left side: how it delivers (partners, activities, resources, costs). Right side: who it serves and how it earns. Every entry comes from the company’s filings shown on this page.
08 · who helps
Key partners
- FedEx Freight Holding Company
- CMA CGM Group
- InPost (consortium)
07 · what it does
Key activities
- U.S. domestic package (priority, deferred, ground)
- International export and domestic package
- Air and ground freight
- FedEx Office and supply chain services
06 · what it draws on
Key resources
- About 452,000 Federal Express employees
- About 700 aircraft and over 180,000 motorized vehicles
- About 84,000 drop-off locations
02 · why customers buy
Value propositions
- A broad portfolio of express, ground and freight transportation and e-commerce services built on an integrated network over more than 50 years.
04 · how it keeps them
Customer relationships
- Ongoing shipping contracts with business customers and account management.
03 · how it reaches them
Channels
- FedEx Office and retail locations, online shipping tools and direct sales to businesses.
01 · who it serves
Customer segments
- Businesses and consumers worldwide
09 · where money goes
Cost structure
FY2026, share of revenue ($94.72B)
- Other operating costs (incl. cost of goods sold)94.2%
Operating profit left: 5.8% of revenue. Depreciation & amortization (inside the costs above): $4.37B. Capital spending: $3.81B.
Source: Form 10-K income statement and cash-flow statement (SEC XBRL).
05 · how money comes in
Revenue streams
- U.S. domestic package $54.6B
- International export package $15.6B
- Freight $6.1B
- FedEx Freight (LTL) $8.8B (FY2026)
Value propositions, channels and customer relationships: Form 10-K (FY2026)
Picks up, transports and delivers packages and freight through an integrated air-ground network, with retail access through FedEx Office and partner stores.
01 what it draws on
Inputs & resources
- About 452,000 Federal Express employees
- About 700 aircraft and over 180,000 motorized vehicles
- About 84,000 drop-off locations
02 what it does
Activities
- U.S. domestic package (priority, deferred, ground)
- International export and domestic package
- Air and ground freight
- FedEx Office and supply chain services
03 who it serves
Customers
- Businesses and consumers worldwide
04 how money comes in
How it earns
- U.S. domestic package $54.6B
- International export package $15.6B
- Freight $6.1B
- FedEx Freight (LTL) $8.8B (FY2026)
How the business makes money
- Network 2.0 is consolidating sortation facilities and pickup-and-delivery routes in the U.S. and Canada.
- U.S. revenue was $67.9B of $94.7B in fiscal 2026.
- FedEx Freight segment operating income fell 59% to $616M in fiscal 2026.
Government & regulation around the business
Non-market factors from the company’s filings: what governments and regulators fund, buy, set, approve or restrict, and which part of the flow above each one touches.
FedEx depends on FAA approvals for aircraft and disputes a tax regulation in court.
Approvals & licenses
FAA aircraft approvals
Began returning MD-11s to service in May 2026 after FAA approval of inspection protocols.
Constrains the businessTouches: ActivitiesSource: Form 10-K (FY2026)
Government funding & tax credits
Tax regulation lawsuit
Sued to invalidate a tax regulation and seek refunds of overpaid federal income taxes.
Supports and constrainsTouches: How it earnsSource: Form 10-K (FY2026)
Revenue by segment (FY2026)
Unit: $M — bar length = revenue, (%) = share of total company revenue
Federal Express
82,273 (87%)FedEx Freight
8,795 (9%)Other and eliminations
3,652 (4%)
Source: Form 10-K (FY2026, year ended 2026-05-31) — revenue by service type Total $94,720M. FedEx Freight was spun off on June 1, 2026 and is no longer consolidated.
10
Where it earnsSite analysis
Many U.S.-listed companies earn most of their revenue outside the U.S. — this breaks down revenue by country/region so it's clear where the business actually makes its money.
Largest market (FY2026)
United States — 72% of revenue
Revenue by country / region (FY2026)
Unit: $M — bar length = revenue, (%) = share of total company revenue
United States
67,944 (72%)International
26,776 (28%)
Source: Form 10-K (FY2026, year ended 2026-05-31) — geographical information Total $94,720M.
11
Contract structureSite analysisShow
Short-term or spot sales carry different earnings quality than long-term or auto-renewing contracts — this shows how the company actually contracts with its customers.
12
Alliances & capital tiesSite analysisShow
Equity stakes, joint ventures, and strategic partnerships disclosed across the 10-K, 8-Ks, and proxy statement.
Capital tie / equity stake
FedEx Freight Holding Company
Spun off June 1, 2026 through a distribution of 80.1% of its shares (one FDXF share for every two FDX shares).
Pending or recent acquisition
CMA CGM Group
Agreed July 1, 2026 to sell FedEx Supply Chain for $1.4 billion; closing expected in the second half of calendar 2026.
Capital tie / equity stake
InPost (consortium)
Part of a consortium making an all-cash offer for InPost S.A. (€15.60 per share); FedEx would hold 37% after completion, subject to regulatory approvals.
13
Customers & suppliersSite analysis
Who the company sells to and buys from. Companies rarely name either, so named counterparties come only from the company's own filings and press releases; otherwise this lists the concentration figures the 10-K discloses.
Customers
Business and consumer shippers worldwide.
Named by the company
No customer is named as material.
What the filings disclose
Suppliers
Aircraft and vehicle makers, fuel suppliers and purchased transportation providers.
Named by the company
No supplier is named as material.
14
Competitors & peersSite analysis
Competitors the 10-K names, and the peer group the company itself chose in its proxy statement. Nothing here is this site's own pick.
FedEx names DHL, UPS, DPD, GLS, the USPS, postal authorities, freight forwarders and startups as competitors, and notes Amazon's in-house delivery.
Competitors named in the 10-K
Peer group the company chose
Director compensation comparison survey group (20 companies), from the proxy statement. Peers are companies the board considers comparable — for example when setting executive pay — not necessarily direct competitors.
Large U.S. companies used to benchmark director pay (executive pay uses a broader survey group).
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Company names link to this site’s analysis where one exists; “site ↗” opens the company’s own website.
15
Six years of financialsFrom SEC data
Each chart's axis holds a single unit (never mixing dollars, %, and $/share). The table's per-period header links to the filing the numbers came from.
Revenue over time
Unit: $M
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-07-20
Profit over time (operating → net)
Unit: $M
- Operating income
- Pretax income
- Net income
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-07-20
Margins over time
Unit: %
- Operating margin
- Net margin
formulaoperating income ÷ revenue × 100
formulanet income attributable to the company ÷ revenue × 100
Cash flow over time
Unit: $M (below zero = cash went out)
- Operating CF
- Investing CF
- Free CF
formulacash flow from operations − capital expenditures
termsFree cash flow (FCF) · Cash flow from operations (operating CF) · Capital expenditures (capex)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-07-20
Financial stability & capital efficiency
Unit: %
- Equity ratio
- ROE
formulatotal equity ÷ total assets × 100 (as reported in the 10-K)
termsStockholders’ equity · Total assets
formulanet income ÷ average equity (beginning + ending, ÷2) × 100 (as reported in the 10-K)
termsNet income (attributable to the company) · Stockholders’ equity
Earnings per share (EPS) and dividend per share
Unit: $
- EPS
- Dividend per share
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-07-20
| Line item | FY202110-K on EDGAR ↗ | FY202210-K on EDGAR ↗ | FY202310-K on EDGAR ↗ | FY202410-K on EDGAR ↗ | FY202510-K on EDGAR ↗ | FY202610-K on EDGAR ↗ |
|---|---|---|---|---|---|---|
| Income statement ($M) | ||||||
| Revenue | 83,959 | 93,512 | 90,155 | 87,693 | 87,926 | 94,720 |
| Operating income | 5,857 | 6,245 | 4,912 | 5,559 | 5,217 | 5,463 |
| Pretax income | 6,674 | 4,896 | 5,363 | 5,836 | 5,441 | 5,793 |
| Net income (attributable) | 5,231 | 3,826 | 3,972 | 4,331 | 4,092 | 4,433 |
| Revenue growthcalc(this year’s revenue − last year’s revenue) ÷ last year’s revenue × 100 | — | 11.4% | -3.6% | -2.7% | 0.3% | 7.7% |
| Operating margincalcoperating income ÷ revenue × 100 | 7.0% | 6.7% | 5.4% | 6.3% | 5.9% | 5.8% |
| Net margincalcnet income attributable to the company ÷ revenue × 100 | 6.2% | 4.1% | 4.4% | 4.9% | 4.7% | 4.7% |
| Balance sheet ($M) | ||||||
| Total assets | 82,777 | 85,994 | 87,143 | 87,007 | 87,627 | 98,937 |
| Total equity | 24,168 | 24,939 | 26,088 | 27,582 | 28,074 | 31,647 |
| Interest-bearing debtSum of short- and long-term borrowings, notes/bonds payable | 20,733 | 20,182 | 20,453 | 20,203 | 19,899 | 24,950 |
| Equity ratio | 29.2% | 29.0% | 29.9% | 31.7% | 32.0% | 32.0% |
| ROE | 21.6% | 15.6% | 15.6% | 16.1% | 14.7% | 14.8% |
| Cash flow ($M) | ||||||
| Operating CF | 10,135 | 9,832 | 8,848 | 8,312 | 7,036 | 8,925 |
| Investing CF | -6,010 | -6,816 | -6,174 | -5,200 | -4,092 | -3,911 |
| Financing CF | -2,090 | -3,019 | -2,597 | -3,426 | -4,019 | 2,749 |
| Free cash flowcalccash flow from operations − capital expenditures | 4,251 | 3,069 | 2,674 | 3,136 | 2,981 | 5,116 |
| Cash and equivalents | 7,087 | 6,897 | 6,856 | 6,501 | 5,502 | 13,311 |
| Per share & other | ||||||
| EPS ($) | 19.45 | 14.33 | 15.48 | 17.21 | 16.81 | 18.55 |
| BVPS ($) | — | — | — | 112.12 | 117.96 | 131.86 |
| Dividend per share ($) | 2.60 | 3.00 | 5.86 | 3.78 | 5.52 | 5.80 |
| Payout ratiocalcdividend per share ÷ diluted EPS × 100 | 13.4% | 20.9% | 37.9% | 22.0% | 32.8% | 31.3% |
| P/E (x) | 13.0 | 12.6 | 11.4 | 11.9 | 10.5 | 17.9 |
| EV/EBITDA (x)calc(market cap + interest-bearing debt − cash and equivalents) ÷ (operating income + depreciation & amortization) | 8.5 | 6.0 | 6.5 | 6.5 | 5.9 | 9.3 |
| P/B (x)calcfiscal year-end closing price ÷ book value per share | — | — | — | 1.83 | 1.49 | 2.52 |
P/B and EV/EBITDA use each period’s period-end (fiscal year-end) figures, not the current share price. Figures without a "calc" tag are as reported in the Form 10-K (the consolidated financial statements and, for older years, earlier 10-Ks), pulled automatically from SEC EDGAR. Where a later filing restated a prior period, the restated figure is used.
Last 8 quarters
Three-month figures from 10-Q filings. Change is versus the same quarter a year earlier. Newest quarter on top.
| Quarter ended | Revenue | Operating income | Net income | Diluted EPS |
|---|---|---|---|---|
| 2026-09-30 | $22.86B+11.9% | $1.07B+9.8% | $290M-68.5% | $1.21 |
| 2026-02-28 | $24B+8.3% | $1.35B+4.3% | $1.06B+16.2% | $4.41 |
| 2025-11-30 | $23.47B+6.8% | $1.38B+31.0% | $956M+29.0% | $4.04 |
| 2025-09-30 | $20.43B | $972M | $920M | $3.89 |
| 2025-08-31 | $22.24B | $1.19B | $824M | $3.46 |
| 2025-05-31 † | $22.22B | $1.79B | $1.65B | — |
| 2025-02-28 | $22.16B | $1.29B | $909M | $3.76 |
| 2024-11-30 | $21.97B | $1.05B | $741M | $3.03 |
† Fourth quarter = the 10-K’s annual figure minus the first three quarters; quarterly EPS isn’t derived this way because share counts change during the year.
16
Is ROIC above WACC?From SEC data
ROIC (the return on money invested in the business) above WACC (the cost of raising that money) means the company is creating value. WACC is an estimate, so its assumptions can be adjusted below.
ROIC (FY2026)
7.9%
formulaoperating income × (1 − tax rate) ÷ invested capital × 100 *invested capital = interest-bearing debt + total equity (average of beginning/ending)
e.g.$5,463M × (1 − 24.5%) ÷ $52,285M × 100 = 7.9%
termsOperating income · Effective tax rate · Invested capital · Interest-bearing debt · Total equity
WACC (this site’s estimate)
8.28%
formulacost of equity × equity weight + cost of debt × (1 − tax rate) × debt weight
e.g.Equity weight: $79.63B ÷ ($79.63B + $24.95B) = 76.1%
e.g.Debt weight: $24.95B ÷ ($79.63B + $24.95B) = 23.9%
e.g.WACC: 10.0% × 76.1% + 3.9% × (1 − 24.5%) × 23.9% = 8.28%
termsCost of equity · Equity weight (E/(D+E)) · Cost of debt · (1 − tax rate) · Debt weight (D/(D+E)) · Market capitalization
How firm is this? With the equity risk premium ±1 point and beta ±0.2, WACC runs 6.9%–10.0% and ROIC − WACC runs −2.1 to +1.0 points. The sign flips inside this range, so the result depends on the assumptions. This describes the latest year and does not predict future value creation.
WACC 8.28% is this site’s estimate under the assumptions below (not a figure the company has published)
- Risk-free rate
- 4.95% (10-year Treasury, 2026-11-03)
- β
- 0.91 (price-derived adjusted beta)
- Equity risk premium
- 5.5%
- Cost of equity
- 9.96%
- Cost of debt
- 3.89%
- Tax rate
- 24.5% (effective rate, FY2024–FY2026)
- Capital structure (equity : debt)
- 76% : 24%
ROIC over time, vs. WACC
Unit: % — bars = each period's ROIC, horizontal line = latest WACC. Bars above the line are green, below are red
- ROIC (above WACC)
- ROIC (below WACC)
- WACC 8.28%
formulaoperating income × (1 − tax rate) ÷ invested capital × 100 *invested capital = interest-bearing debt + total equity (average of beginning/ending)
termsOperating income · Effective tax rate · Invested capital · Interest-bearing debt · Total equity
formulacost of equity × equity weight + cost of debt × (1 − tax rate) × debt weight
termsCost of equity · Equity weight (E/(D+E)) · Cost of debt · (1 − tax rate) · Debt weight (D/(D+E)) · Market capitalization
Try different WACC assumptions
β and the equity risk premium are estimates with a real range of plausible values — move the sliders to check whether ROIC > WACC still holds. The risk-free rate starts at the 10-year Treasury yield on 2026-11-03 (U.S. Treasury).
Initial β: 0.91 (price-derived adjusted beta. Raw β 0.87, R² 0.17, 130 weeks)
formula0.67 × β + 0.33 (β = the slope of weekly stock returns regressed on weekly market returns)
e.g.0.67 × 0.870 + 0.33 = 0.913
termsβ (beta)
Period 2024-05-10–2026-11-04, using S&P 500 ETF (SPY) as the market proxy. Source: Yahoo Finance price history.
formularisk-free rate + β × equity risk premium
e.g.5.0% + 0.91 × 5.5% = 10.0%
termsCAPM · Risk-free rate · β (beta) · Equity risk premium (market risk premium)
formulafiscal year-end closing price × shares outstanding (= market cap)
formulainterest expense ÷ interest-bearing debt × 100 (clamped to 0–10%; falls back to the risk-free rate if there’s no debt)
17
What the price implies (DCF)From SEC data
A company's value can be written as its free cash flow divided by (cost of capital − perpetual growth). Working that backwards from the market's valuation shows how much growth the share price assumed — compared here with the company's actual past growth.
Growth the price implies (price on 2026-11-04)
2.5%
Perpetual FCF growth: g = r − FCF ÷ EV = 8.3% − 5.7%
Past FCF growth (FY2021–FY2026)
+3.8%
Compound annual rate, 5 years
Past revenue growth (FY2021–FY2026)
+2.4%
Compound annual rate, 5 years
Inputs (FY2026): free cash flow $5.12B (operating CF − capex); enterprise value $89.13B = market cap $77.49B (latest close, 2026-11-04) + debt $24.95B − cash and short-term investments $13.31B; r = WACC of 8.3% using this page’s default assumptions (β 0.91, risk-free 5.0%, market premium 5.5%).
Three WACC scenarios
The same calculation under cautious, base and optimistic cost-of-capital assumptions (risk-free rate fixed at the 10-year Treasury yield). Pick one to load it into the sliders below.
Try your own assumptions
V = FCF ÷ (r − g). It starts at the implied growth rate, where the theoretical value equals today’s enterprise value.
Theoretical enterprise value
$88.21B
FCF $5.12B ÷ (8.3% − 2.5%)
Theoretical ÷ actual enterprise value
0.99x
Below 1x: these assumptions value the business below the market did
How sensitive the answer is
Theoretical ÷ actual enterprise value for each combination of r and g.
| g \ r | 6.3% | 7.3% | 8.3% | 9.3% | 10.3% |
|---|---|---|---|---|---|
| 0% | 0.91x | 0.79x | 0.69x | 0.62x | 0.56x |
| 2% | 1.33x | 1.08x | 0.91x | 0.79x | 0.69x |
| 4% | 2.50x | 1.74x | 1.33x | 1.08x | 0.91x |
| 6% | 19.13x | 4.42x | 2.50x | 1.74x | 1.33x |
| 8% | — | — | 19.13x | 4.42x | 2.50x |
A simplified model for seeing what the market price assumes, not a forecast or a target price. It treats free cash flow as growing at one constant rate forever; the result swings widely with small changes in r and g, and is undefined when g reaches r. Free cash flow here is operating cash flow minus capex, which is after interest — a full DCF of enterprise value would use cash flow before interest. Market cap uses the latest close (2026-11-04) × shares at fiscal year-end; free cash flow and WACC inputs are from the latest fiscal year.
18
Earnings qualityFrom SEC dataShow
The same reported profit can mean different things depending on whether it's backed by cash, driven by the core business, or the result of a one-off item. Four checks below.
- ✓
Operating CF ÷ net income: averages 2.06x
Profit is backed by cash coming in.
- ✓
Accrual ratio (latest): -4.8%
A small share of profit rests on accounting estimates.
- ✓
Core-earnings share (operating income ÷ pretax income): 94%
Most profit comes from core operations.
- ✓
Days sales outstanding: 52 → 46 days
No major slowdown in collecting on sales.
Operating CF vs. net income
Unit: $M — operating CF above net income means profit is backed by cash
- Operating CF
- Net income
formulacash flow from operations ÷ net income attributable to the company
termsCash flow from operations (operating CF) · Net income (attributable to the company)
formula(net income − operating CF) ÷ average total assets × 100
termsNet income (attributable to the company) · Cash flow from operations (operating CF) · Total assets
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-07-20
Profit bridge (FY2026)
Unit: $M — what moved profit from operating income to net income
- Profit (each stage)
- Pushed profit up
- Pushed profit down
formulaoperating income ÷ income before income taxes × 100
termsOperating income · Income before income taxes (pretax income)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-07-20
Receivables & inventory days
Unit: days — days grow when receivables or inventory build up faster than sales
- Days sales outstanding
formulaaverage receivables (opening + closing ÷ 2) ÷ revenue × 365
formulaaverage inventory (opening + closing ÷ 2) ÷ cost of revenue × 365
termsInventory · Cost of revenue (COGS)
Worked examples (latest period)
formulacash flow from operations ÷ net income attributable to the company
e.g.$8,925M ÷ $4,433M = 2.01x
termsCash flow from operations (operating CF) · Net income (attributable to the company)
formulaoperating income ÷ income before income taxes × 100
e.g.$5,463M ÷ $5,793M × 100 = 94%
termsOperating income · Income before income taxes (pretax income)
formulaaverage receivables (opening + closing ÷ 2) ÷ revenue × 365
e.g.($11,368M + $12,672M) ÷ 2 ÷ $94,720M × 365 = 46 days
formulaaverage inventory (opening + closing ÷ 2) ÷ cost of revenue × 365
termsInventory · Cost of revenue (COGS)
19
Who holds the sharesFrom SEC dataShow
How much of the stock large institutional investors report owning on SEC Form 13F, how much the directors and executive officers hold (and how much of the vote they control), and roughly how much is left for individual investors. Shown next to beta so the holder mix can be read alongside how much the stock swings.
Institutions, insiders and everyone else, 13F holdings as of 2026-06-30
“Everyone else” is what remains after shares reported on Form 13F and shares held by directors and executive officers: mostly individual investors, plus non-insider families or foundations and smaller or foreign institutions. The figures have different dates and 13F reports count some shares twice — read it as an approximate split.
- Held by 13F filers
- 80.7%
- Directors & officers (shares)
- <1%
- Everyone else (est.)
- 19.3%
- Directors & officers (voting power)
- <1%
- Institutional-ownership rank
- 296 of 416
- Beta (adjusted)
- 0.91
individuals and other non-13F holders
no separate voting figure; shown as shares
1 = most institutional; 71% of covered companies have more
above 1 = swings more than the market
- 191.0M shares reported by 1,956 13F filers ÷ 236.6M shares outstanding on 2026-07-16. Option positions are excluded.
- Directors and executive officers as a group, from the proxy statement’s beneficial-ownership table; includes shares they can acquire within 60 days.
- A large “everyone else” share can still reflect a family, trust or foundation stake held outside the board; check the proxy statement’s 5% holders.
Sources: SEC Form 13F data set (holdings as of 2026-06-30) · Form DEF 14A filed 2026-08-17 (beneficial ownership table) · Form 10-K cover page (shares outstanding as of 2026-07-16)
20
Strengths & weaknessesSite analysis
Strengths
1. Scale of network
About 700 aircraft, over 180,000 vehicles and about 84,000 drop-off locations.
Evidence: Form 10-K FY2026
2. Earnings recovery
Federal Express segment operating income rose 21% to $5.9B in fiscal 2026.
Evidence: Form 10-K FY2026
3. Cash generation
Operating cash flow of $8.9B in fiscal 2026.
Evidence: SEC EDGAR XBRL
Weaknesses
1. Thin margins
Consolidated operating margin of 5.8% in fiscal 2026.
Evidence: Form 10-K FY2026
2. Restructuring and separation costs
Spin-off costs of $738M and business optimization costs of $366M in fiscal 2026.
Evidence: Form 10-K FY2026
21
What draws investors to itSite analysis
Why the stock can look attractive to investors — each point paired with what has to hold for it to stay true, and the opposing view. This is this site's analysis, not a recommendation to buy or sell.
P/E (FY2026)
17.9x
Price at fiscal year-end ÷ diluted EPS
Dividend yield (FY2026)
1.75%
Dividends per share ÷ fiscal year-end price
Payout ratio (FY2026)
31%
Dividends per share ÷ diluted EPS
FCF yield (FY2026)
6.4%
(Operating CF − capex) ÷ market cap
1. Cost transformation
Network 2.0 consolidates facilities and routes in the U.S. and Canada.
- What has to hold
- Savings outweigh disruption.
- The other side
- Execution and labor risks.
Evidence: Form 10-K FY2026
2. Simplified portfolio
Freight spin-off and Supply Chain sale focus FedEx on its core network.
- What has to hold
- Remaining business earns higher returns.
- The other side
- Loss of FedEx Freight's higher-margin earnings.
Evidence: Form 10-K FY2026; Form 8-K 2026-06-01
Fiscal years end May 31. Dividends per share are as declared in each fiscal year, so they vary with declaration timing (e.g., $5.86 in FY2023, $3.78 in FY2024). Shares and book value for FY2021–FY2023 are not shown. Employee count covers Federal Express only.
22
ResilienceSite analysisShow
How well the company could absorb a bad year: its financial buffer, how its revenue and profit held up in the worst year on record, and what the 10-K says about the business's exposure to shocks. Figures and filing statements only — no overall rating.
1. Financial buffer (FY2026)
Cash & short-term investments ÷ debt due within a year
4.2x
$13.31B vs. $3.17B
Interest coverage (operating income ÷ interest expense)
5.6x
$5.46B vs. $970M
Free cash flow ÷ dividends paid
3.7x
$5.12B vs. $1.37B (FCF = operating CF − capex)
2. Worst year in the record, and the recovery
| Figure | Worst year-over-year change | Back to the prior level? |
|---|---|---|
| Revenue | -3.6% in FY2023 ($93.51B → $90.16B) | Yes, by FY2026 |
| Operating income | -21.3% in FY2023 ($6.25B → $4.91B) | Not yet, as of FY2026 |
Covers only the 6 fiscal years on record (FY2021–FY2026), which may not include a full recession — the worst year here isn’t necessarily how the company would fare in a severe downturn.
3. Business resilience (from the 10-K)
Fuel surcharges
Indexed fuel surcharges have mostly offset higher fuel costs over time.
Source: Form 10-K FY2026
Liquidity
Cash of $13.3B at May 31, 2026 and $8.0B at September 30, 2026, after $2B of buybacks in June–September.
Source: Form 10-K FY2026; Form 10-Q (quarter ended 2026-09-30)
23
Legal & regulatory mattersSite analysisShow
Lawsuits, government investigations, enforcement actions and settlements the company discloses — where each stands, what is at stake, and what comes next. From the 10-K's Legal Proceedings and contingencies note, the latest 10-Q, and 8-Ks.
FedEx faces driver joint-employer suits, wage-and-hour class actions and vehicle-accident claims, none expected to be material in aggregate, plus new litigation over refunds of invalidated IEEPA tariffs.
3 open matters (1 flagged as major)
IEEPA tariff refund litigation
PendingLawsuitMajorFedEx v. U.S. Customs and Border Protection (Court of International Trade); fourteen nationwide class actions seeking tariff refunds from FedEx
After the Supreme Court invalidated IEEPA tariffs on February 20, 2026, FedEx sued for a full refund and filed claims through CBP; it received about $800 million by May 31, 2026 and recorded $749 million of customer refund obligations. Thirteen class actions were consolidated in Tennessee federal court.
- Next step
- Impact cannot be reasonably estimated; FedEx says a material effect is reasonably possible.
Source: Form 10-K (FY2026, year ended 2026-05-31) — Note 19, Contingencies · Form 10-Q (quarter ended 2026-09-30) — Contingencies
TCJA transition-tax regulation refund suit
On appealTax disputeFedEx v. United States (W.D. Tenn.; Sixth Circuit)
FedEx challenged a regulation denying foreign tax credits under the TCJA one-time transition tax and sought refunds for 2018–2019. The district court ruled the regulation invalid in March 2023 and again in February 2025, and validated the refund amount in June 2025; the government appealed, and the Sixth Circuit heard argument on July 30, 2026.
- Amounts
- FedEx has recorded a cumulative benefit of $249 million.
Joint-employer, wage-and-hour and vehicle-accident suits
PendingClass actionDrivers of service providers, employees and accident claimants v. FedEx and subsidiaries
Suits allege Federal Express is a joint employer of service-provider drivers, wage-and-hour violations, and liability for third-party accident losses.
- Next step
- Management expects no material adverse effect in aggregate.
Source: Form 10-Q (quarter ended 2026-09-30) — Contingencies
Company statement: No environmental proceedings above the $1 million threshold.
Based on Form 10-K (FY2026, year ended 2026-05-31) — Note 19, Contingencies, reviewed 2026-10-24. Routine ordinary-course claims are not listed. “Major” is this site’s judgment of which matters could materially affect results.
24
Risks (including geopolitical)Site analysis
Starting from the 10-K's Risk Factors section, organized by category — geopolitical, currency, raw materials, regulatory, disaster, and more — with impact and likelihood assessed by this site.
Risk map
Vertical = impact on results, horizontal = likelihood. Upper right = most severe. Numbers match the list below (placement is this site’s own assessment).
Likelihood →
"Company disclosure" vs. "this site’s assessment"
The description and mitigation for each risk are this site’s summary of the 10-K’s "Risk Factors" section. Impact and likelihood are this site’s own assessment, not the company’s — where the company discloses its own likelihood assessment, that is noted in the summary.
Impact is judged from how large the affected business is relative to total revenue/profit, and from the risk’s track record of moving results in the past. Likelihood is judged from the filing’s wording and the current business environment (already occurring, or recurring). See the rating criteria.
- 1Competition & technology shift
Competition
- Company disclosure (summarized from the 10-K)
- Competes with UPS, DHL, DPD, GLS, the USPS, freight forwarders and startups; large shippers such as Amazon are building in-house delivery.
- Company’s stated mitigation
- Network 2.0 cost program.
- This site’s assessment
- Impact High / Likelihood Med
- 2Demand & macro
Shipping volumes and trade
- Company disclosure (summarized from the 10-K)
- Volumes depend on economic activity and global trade, including tariffs.
- Company’s stated mitigation
- Not stated in the filings.
- This site’s assessment
- Impact High / Likelihood Med
- 3Disaster
Aircraft groundings
- Company disclosure (summarized from the 10-K)
- The FAA's November 2025 emergency directive grounded MD-11 aircraft, disrupting fiscal 2026 operations; full return to service is expected by end-2026.
- Company’s stated mitigation
- Boeing inspection and return-to-service protocols.
- This site’s assessment
- Impact Med / Likelihood Med
- 4Law & regulation
Tariff refund obligations
- Company disclosure (summarized from the 10-K)
- After the Supreme Court invalidated IEEPA tariffs, FedEx received about $800M of refunds and owes customers $749M; class actions seek refunds from FedEx.
- Company’s stated mitigation
- Refund process through CBP's CAPE system.
- This site’s assessment
- Impact Med / Likelihood Med
- 5Costs & inflation
Fuel and labor costs
- Company disclosure (summarized from the 10-K)
- Fuel prices are volatile and labor-law changes could make unionization easier.
- Company’s stated mitigation
- Indexed fuel surcharges.
- This site’s assessment
- Impact Med / Likelihood Med
25
What changed in the risk factorsFrom SEC data
Paragraphs in the latest 10-K's Risk Factors that have little overlap with the year before, and paragraphs that were dropped.
New or substantially reworded (8)
Although we do not believe the cyber incidents and other systems disruptions that we and our third-party service providers have experienced to date have had a material effect on our business, there is no guarantee that a future cybersecurity threat or incident will be detected and remediated to not materially and adversely affect our business strategy, reputation, results of operations, or financial condition. While we believe we devote significant resources to network security, disaster recovery, employee training and other measures to secure our information technology systems and prevent unauthorized access to or loss of data, there are no guarantees that they will be adequate to safeguard against all cyber incidents, systems disruptions, system compromises or misuses of data.
We are increasingly utilizing AI within our operations. The development and deployment of AI technologies involve significant risks and uncertainties, and our ability to successfully implement and use AI technologies depends on a variety of factors, including the reliability, accuracy, security, and effectiveness of the technologies; the availability of qualified personnel and technical infrastructure; the performance of third-party vendors and service providers; evolving regulatory requirements and industry standards; and customer and market acceptance. AI technologies are rapidly evolving and may produce inaccurate, flawed, or unintended outputs or outcomes. Our use of AI may also increase risks related to cybersecurity, data privacy, intellectual property, confidentiality, regulatory compliance, and reputational harm. In addition, evolving laws, regulations, and governmental guidance…
We may not be able to achieve our calendar 2029 financial performance targets. Read more
On February 12, 2026, we announced a comprehensive multi-year financial framework with financial performance targets for 2029. Our ability to achieve these goals is dependent on a number of factors, including the other risk factors described in this Annual Report. We may fail to achieve our long-term financial performance targets if we are unsuccessful in implementing our strategies, our estimates or assumptions change, or for any other reason. Our inability to achieve these targets could materially and adversely affect our results of operations and financial condition, and the price of our common stock may be negatively affected.
We may not realize the anticipated benefits from the Spin-Off, which could harm our business. Read more
On June 1, 2026, we completed the Spin-Off. We may incur significant additional expenses and challenges arising from and following the Spin-Off of the FedEx Freight business. We may not be able to achieve the full strategic, financial, operational, or other benefits that are expected to result from the Spin-Off, and the anticipated benefits of the Spin-Off are based on a number of assumptions, some of which may prove incorrect. A failure to realize all or some of the expected benefits of the Spin-Off, or if such benefits are delayed, could materially and adversely affect our business, financial condition, cash flows, and results of operations. In addition, there can be no assurance that the combined value of the shares of the two separated companies will be equal to or greater than the value of…
In connection with the Spin-Off, we and FedEx Freight entered into various agreements that provide for the performance of certain services by each company for the benefit of the other, including a separation and distribution agreement, a transition services agreement, a tax matters agreement, an employee matters agreement, an intellectual property cross-license agreement, a trademark license agreement, stockholder and registration rights agreement, and an indemnification agreement. The separation and distribution agreement provides for cross-indemnities between us and FedEx Freight for liabilities allocated to the respective party pursuant to the terms of such agreement. If FedEx Freight or its successor entities are unable to satisfy their obligations under these agreements, we could incur operational difficulties or losses. In addition, the terms of the Spin-Off include licenses and…
In addition, we retained an equity interest in FedEx Freight in connection with the Spin-Off. Read more
We cannot predict the trading price of shares of FedEx Freight’s common stock and the market value of the FedEx Freight shares is subject to market volatility and other factors outside of our control. As previously disclosed, we will divest our ownership interest in FedEx Freight within twenty-four months from the Spin-Off, but there can be no assurance regarding the timing of, or timeframe over which, such divestiture or divestitures may occur, or the amount of proceeds to be received by us in connection with any such divestitures within the twenty-four month timeframe.
The Spin-Off could result in substantial tax liability to us and our stockholders. Read more
We received an opinion of counsel and a private letter ruling from the U.S. Internal Revenue Service (the “IRS”) regarding the qualification of the Spin-Off and certain related transactions as a transaction that is generally tax-free to us and our stockholders for U.S. federal income tax purposes. While the private letter ruling is generally binding on the IRS to the extent the factual representations and assumptions on which it is based are true and accurate, the opinion of our counsel is not binding on the IRS or the courts. There can be no assurance that the IRS or a court
will not take a contrary position with respect to the conclusions reached in the tax opinion. Read more
If the IRS ultimately determines that the Spin-Off is taxable, then the Spin-Off could be treated as a taxable dividend or capital gain to our stockholders for U.S. federal income tax purposes, and we could incur significant U.S. tax liabilities. In connection with the Spin-Off, we entered into a tax matters agreement with FedEx Freight, pursuant to which FedEx Freight agreed to not enter into transactions that could cause the Spin-Off or any related transactions to be taxable to us and to indemnify us for any tax liability resulting from any such transaction. However, there can be no assurance that FedEx Freight would have the resources or liquidity required to indemnify us for any such tax liability.
No longer in the text (4)
The technology infrastructure of acquired businesses, as well as their practices related to the use and maintenance of data, could also present issues that we were not able to identify prior to the acquisition. Read more
For example, ShopRunner, which we acquired in 2021, collects and stores certain personal data of its merchants and their buyers, its partners, consumers with whom it has a direct relationship, and
users of its applications. Additionally, it uses third-party service providers and subprocessors to help deliver services to merchants and their buyers. Read more
These service providers and subprocessors may store or access personal data and/or other confidential information. The foregoing factors increase the risk of data incidents and the amount of potential exposure in the event of a data breach.
Failure to complete the adjustment of our air network to remove costs related to services previously provided to the United States Postal Service (“USPS”) could adversely affect our profitability. Read more
The contract for Federal Express to provide the USPS transportation services within the United States expired by its terms on September 29, 2024, and Federal Express continued to provide air transportation services domestically and to Puerto Rico through the contract’s expiration. If we are unable to complete the adjustment of our air network to remove costs related to the services previously provided to the USPS, our profitability could be negatively affected.
The planned spin-off of FedEx Freight may not be completed on the terms or timeline currently contemplated, if at all, and there is no guarantee that the spin-off, if completed, will achieve the intended financial and strategic benefits. Read more
In December 2024, we announced our intention to separate FedEx Freight from our portfolio structure through the creation of a separate, publicly traded company (“NewCo”). The planned separation, which would be implemented through the spin-off of shares of NewCo to FedEx stockholders, is expected to be tax-free for U.S. federal income tax purposes for FedEx stockholders and be completed by June 2026. Completion of the planned spin-off is subject to the final approval of our Board of Directors and will be dependent on a number of factors that may be beyond our control, including, among other things, market conditions, industry trends, the receipt and…
10 more paragraphs differ; the filings below have the full text.
Matched automatically, quoted as filed, and may include rewording of an existing risk. Compares Item 1A of the 10-K filed Jul 20, 2026 ↗ with the 10-K filed Jul 21, 2025 ↗.
26
What to watch going forwardSite analysis
- Seven-month transition period to December 31, 2026, then calendar-year reporting.
- Completion of the FedEx Supply Chain sale and the InPost offer.
- Permanent CFO search after John Dietrich's departure; Claude Russ is interim CFO.
27
Source documentsShow
This page's financial figures come from the Form 10-Ks listed below. Check the original filings for full detail.
Other sources referenced in the analysis
Last updated
Analysis last edited: October 31, 2026 · Financial data fetched: October 24, 2026 09:20 (SEC EDGAR) · Source 10-K filed: July 20, 2026
Built on10-K FY2026 · filed 2026-07-20Proxy statement (2026)
Next update expectedAfter FY2027’s 10-K is filed (roughly 60–90 days after fiscal year end (sooner for larger filers)), financials and analysis will be refreshed.
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