Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
FedEx delivered FY2026 revenue growth of 7.7% to $94.7B and net income growth of 8.3% to $4.4B, but operating-margin pressure, $744M of Spin-Off costs, global-trade uncertainty, and the June 1, 2026 FedEx Freight Spin-Off remain important considerations. Source: 10-K Item 7 MD&A, pp.42-49.
Revenue
$94.72B
+7.73% YoY
EPS (Diluted)
$18.55
+10.35% YoY
Operating Income
$5.46B
+4.72% YoY
Audit Opinion: Unqualified opinion — Ernst & Young LLP concluded that the consolidated financial statements present fairly, in all material respects, FedEx's financial position, results of operations, and cash flows in conformity with U.S. GAAP; it also issued an unqualified opinion on internal control over financial reporting.(Report of Independent Registered Public Accounting Firm)
Source: SEC XBRL
Fedex (FDX) reported FY2026 revenue of $94.72B, up 7.7% year over year. Operating margin was 5.8%, down 0.1 points from 5.9% a year earlier. Operating cash flow was $8.93B, up 26.8% year over year.
Last 4 quarters: 3 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Sep 2025 | 3.83 | 3.63 | Beat +5.5% |
| Jun 2025 | 6.07 | 5.87 | Beat +3.4% |
| Mar 2025 | 4.51 | 4.58 | Miss -1.5% |
| Dec 2024 | 4.05 | 3.94 | Beat +2.9% |
Compiled by AI from 10-K Item 7 of this filing
FY2026 revenue increased 8% to $94.7B, primarily reflecting improved package base yields, increased U.S. domestic package volumes, higher fuel surcharges, and favorable exchange rates. These benefits were partly offset by the expiration of the U.S. Postal Service contract and lower FedEx Freight shipments; Federal Express revenue rose 9%, while FedEx Freight revenue declined 1%.
Source: 10-K Item 7 MD&A
Federal Express segment operating income increased $1.0B to $5.9B and its operating margin expanded 70 basis points to 7.2%. In contrast, FedEx Freight operating income fell $873M to $616M and its margin declined 970 basis points to 7.0%, primarily amid lower volume linked to macroeconomic conditions.
Source: 10-K Item 7 MD&A
FY2026 operating income included $744M of FedEx Freight Spin-Off costs, or $589M after tax ($2.46 per diluted share), plus $366M of business optimization and realignment costs, or $285M after tax ($1.19 per diluted share). Network 2.0 had been implemented in approximately 410 U.S. and Canadian locations as of May 31, 2026; FedEx expects to complete the U.S. implementation by the end of calendar 2027.
Source: 10-K Item 7 MD&A
Following the Supreme Court decision invalidating certain IEEPA tariffs, FedEx had submitted $3.3B of refund claims as of May 31, 2026 and received approximately $800M in cash refunds. It recorded $749M in current liabilities for estimated refunds owed to customers, while the ultimate amount and timing of further recoveries remain uncertain and related litigation could have a material financial impact.
Source: 10-K Item 7 MD&A
For the remainder of calendar year 2026, management expects revenue and operating-profit growth, supported by U.S. Domestic and International yield and volume improvement, and targets $1.0B of structural cost reduction by the end of calendar 2026. However, it expects higher wage and purchased-transportation rates, costs from the newly ratified pilot collective bargaining agreement, and inflationary pressures; calendar 2026 capital expenditures are expected to be about $3.9B.
Source: 10-K Item 7 MD&A
Compiled by AI from 10-K Item 1A of this filing · 4 high, 1 medium, 0 low
FedEx's shipment volumes are directly tied to goods purchases, production, and global trade. The company states that tariffs, trade barriers, inflation, elevated interest rates, and geopolitical conflicts have weakened transportation-industry conditions and could reduce global shipment volumes, increase costs, and adversely affect results.
Source: 10-K Item 1A
FedEx may not realize the expected savings, timing, or operational benefits from Network 2.0, Tricolor, and international transformation programs. Integration of historically separate Federal Express and legacy FedEx Ground networks could entail higher costs, customer or service-provider losses, labor or legal challenges, operational disruptions, and delays.
Source: 10-K Item 1A
FedEx purchases substantial quantities of jet and vehicle fuel and had no derivative instruments to reduce fuel-price exposure as of May 31, 2026. Indexed surcharges have generally mitigated fuel-cost increases over time, but competitive pressure could limit surcharge recovery; high surcharges could also shift demand toward lower-yield services or reduce demand altogether.
Source: 10-K Item 1A
A significant cyberattack, data breach, or disruption involving FedEx or a critical third party could interrupt operations, compromise sensitive information, damage customer trust, and require substantial remediation spending. The filing notes that the size and complexity of its systems, third-party dependencies, and increased use of AI can heighten these risks.
Source: 10-K Item 1A
FedEx is self-insured up to specified limits for workers' compensation, vehicle accidents, cargo and property losses, general liabilities, and disability benefits. Higher claim severity, rising healthcare costs, large trucking-industry verdicts, reduced excess-insurance availability, or claims above coverage limits could increase expenses materially.
Source: 10-K Item 1A
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 94.72 $B | 87.93 $B | +7.73% |
Operating Income $B | 5.46 $B | 5.22 $B | +4.72% |
Net Income $ | 4,433,000,000.00 $ | 4,092.00 $ | +108333233.33% |
EPS (Basic) $ | 18.71 $ | 16.96 $ | +10.32% |
EPS (Diluted) $ | 18.55 $ | 16.81 $ | +10.35% |
Answers draw on this SEC filing and the data on this page
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