FedEx “delivered an impressive finish to a strong fiscal year”

FedEx Corp. reports 13% revenue growth in the fourth quarter as it publishes its consolidated results for Q4 ended May 31.

	Fiscal 2026				Fiscal 2025
	As Reported (GAAP)		Adjusted (non-GAAP)		As Reported (GAAP)		Adjusted (non-GAAP)
Revenue	$25.0 billion		$25.0 billion		$22.2 billion		$22.2 billion
Operating income	$1.55 billion		$2.09 billion		$1.79 billion		$2.02 billion
Operating margin	6.2%		8.4%		8.1%		9.1%
Net income	$1.60 billion		$1.53 billion		$1.65 billion		$1.46 billion
Diluted EPS	$6.60		$6.31		$6.88		$6.07

This year’s and last year’s quarterly consolidated results have been adjusted for:

 

	Fiscal 2026				Fiscal 2025
Impact per diluted share	Fourth Quarter		Full Year		Fourth Quarter		Full Year
Mark-to-market (MTM) retirement plans accounting adjustments	($2.05)		($2.08)		($1.63)		($1.60)
FedEx Freight spin-off costs	0.97		2.46		0.11		0.18
Business optimization costs	0.66		1.19		0.39		2.37
Fiscal year change costs	0.04		0.11		—		—
Asset impairment charges	0.07		0.08		0.07		0.06
International regulatory and legacy FedEx Ground legal matters	—		(0.07)		0.26		0.37

Consolidated adjusted operating income improved in the fourth quarter, reflecting continued strength in U.S. Domestic and International Priority package yields, cost savings from transformation initiatives, and increased U.S. domestic and international export package volume.

“Team FedEx delivered an impressive finish to a strong fiscal year, providing excellent service to our customers and successfully executing on our transformation initiatives,” said Raj Subramaniam, FedEx Corp. president and chief executive officer. “Our profitable growth strategy is working. We are building momentum across our global industrial network, driving structural improvements and winning in high-value growth markets. With the successful spin-off of FedEx Freight, we are entering this next chapter positioned to grow while further optimizing our network, lowering our cost to serve, creating meaningful long-term value, and driving robust free cash flow.”

Fourth Quarter Results

Federal Express segment operating results improved during the quarter, driven by higher U.S. domestic and International Priority package yields, continued cost savings from transformation initiatives, and increased U.S. domestic and international export package volume. These factors were partially offset by increased purchased transportation and wage rates, higher variable incentive compensation expenses, and the financial impacts of global trade policy changes.

Fourth quarter results include a noncash impairment charge of $23 million ($0.07 per diluted share) from the decision to permanently retire 10 aircraft. Last year’s fourth quarter results included a noncash impairment charge of $21 million ($0.07 per diluted share) from the decision to permanently retire 12 aircraft, plus eight related engines. These retirements are aligned with the company’s fleet reduction and modernization strategy as the company continues to improve its global network efficiency and better align air network capacity with anticipated demand.

Full-Year Results

For the full fiscal year, FedEx Corporation reported the following consolidated results (adjusted measures exclude the items listed above for the applicable fiscal year):

 

	Fiscal 2026				Fiscal 2025
	As Reported (GAAP)		Adjusted (non-GAAP)		As Reported (GAAP)		Adjusted (non-GAAP)
Revenue	$94.7 billion		$94.7 billion		$87.9 billion		$87.9 billion
Operating income	$5.46 billion		$6.61 billion		$5.22 billion		$6.12 billion
Operating margin	5.8%		7.0%		5.9%		7.0%
Net income	$4.43 billion		$4.84 billion		$4.09 billion		$4.43 billion
Diluted EPS	$18.55		$20.24		$16.81		$18.19

Results reflect lower structural costs as the company exceeded its goal of $1 billion of transformation-related cost savings during the year.

Capital spending for fiscal 2026 totaled $3.8 billion, a decrease of $246 million, or 6%, compared with fiscal 2025. Capital spending as a percentage of revenue declined to 4.0%, the lowest annual level in FedEx Corporation history.

FedEx Freight Spin-off Completed

The spin-off of FedEx Freight into a new publicly traded company was finalized on June 1, 2026. In connection with the spin-off, FedEx Freight paid a cash dividend of approximately $4.1 billion to FedEx Corporation from the proceeds of the $3.7 billion senior notes offering completed in February 2026 and borrowings under its delayed-draw term loan facility.

FedEx Freight will host a call to discuss the company’s fourth quarter results on June 25, 2026.

Fiscal Year Change

In January 2025, the FedEx Board of Directors approved a change in the company’s fiscal year end from May 31 to December 31. The fiscal year change became effective for the period beginning June 1, 2026.

Cash and Capital Returns

The ending cash and cash equivalents balance of $13.3 billion includes a $4.1 billion cash dividend from the FedEx Freight spin-off. The dividend will be utilized in a manner consistent with preserving the tax-free nature of the transaction. In addition, the reported cash balance includes approximately $800 million in IEEPA tariff refunds held for refund to customers.

During fiscal 2026, FedEx returned approximately $2.2 billion to stockholders through the combination of $776 million of stock repurchases and $1.4 billion of dividend payments. Repurchases during fiscal 2026 totaled approximately 3.3 million shares, or 1.4% of the shares outstanding at the beginning of the year, and increased fourth quarter and full-year earnings by $0.09 and $0.21 per share, respectively. As of May 31, 2026, $1.3 billion remained under the company’s 2024 stock repurchase authorization.

For calendar 2026, FedEx remains committed to returning capital to stockholders, including the previously announced 5% increase in the annual dividend on its common stock, after adjusting for the FedEx Freight spin-off. The company also intends to repurchase up to $1 billion worth of shares opportunistically, leveraging continued balance sheet flexibility and free cash flow generation to offset dilution from equity compensation.

“Our fourth quarter and full-year results reflect the tenacity of the FedEx team to deliver steady adjusted operating income improvement year-over-year while navigating significant headwinds,” said Claude Russ, FedEx Corp. enterprise vice president, finance and interim chief financial officer. “As we look ahead, continued revenue and earnings growth momentum in our transition year positions us to unlock significant stockholder value through a resolute focus on driving unprecedented free cash flow growth.”