Fedex FDX

NYSE FDX

$309.26 -4.87 (-1.55%)

As of: Sep 9, 2026 · 3:59 PM EDT

Key Stats

Market Cap73.62 Bn

P/E16.61

P/S0.78

Div. Yield0.02

Total Debt (Qtr)25.88 Bn

Revenue Growth (1y) (Qtr)12.54

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About

FedEx Corporation provides customers and businesses worldwide with a broad portfolio of transportation, e commerce, and business services offering integrated business solutions utilizing its flexible, efficient, and intelligent global network. The company operates the world’s largest all cargo air fleet and a comprehensive ground network that connects more than 99% of global gross domestic product. Through its FedEx brand it offers time definite delivery, freight transportation, customs brokerage, supply chain solutions, and digital commerce tools. Following the one FedEx consolidation in June 2024, Federal Express and FedEx Ground were merged into a single entity operating a unified air ground express network, while FedEx Freight remains a separate less than truckload provider. FedEx continues to invest in initiatives such as Network 2.0, the DRIVE program, and the fdx platform to improve efficiency, enhance customer experience, and drive long term profitability.

The company generates revenue primarily from its transportation services which include express package delivery, freight forwarding, and logistics solutions, generating the majority of its sales. Additional revenue streams come from retail and office services provided through FedEx Office locations, data and technology solutions offered by FedEx Dataworks, and value added offerings such as customs brokerage, trade management, and supply chain consulting. Fuel surcharges, service specific pricing, and ancillary fees also contribute to overall income, while the company’s diversified customer base ensures revenue stability across geographic markets and economic cycles.

The company operates through the following segments: Federal Express and FedEx Freight, which together represent its major service lines and reportable segments beginning in the first quarter of 2025. Other operating units such as FedEx Dataworks, FedEx Office, and FedEx Logistics are included in corporate, other, and eliminations for segment reporting purposes, while the results of FedEx Custom Critical are aggregated within the FedEx Freight segment.

Federal Express: This segment provides rapid, reliable, time and day definite delivery services to more than 220 countries and territories through an integrated air ground network that includes approximately 63,000 drop-off locations, nearly 700 aircraft, and over 175,000 motorized vehicles as of May 31, 2025.
It employs roughly 440,000 personnel and contracts with about 5,700 independent small businesses for certain linehaul and pickup and delivery operations.
Services range from overnight options such as FedEx First Overnight, FedEx Priority Overnight, and FedEx Standard Overnight to deferred offerings like FedEx 2Day, FedEx 2Day AM, FedEx Express Saver, and FedEx SameDay, as well as freight and e commerce solutions including FedEx Delivery Manager and FedEx Returns Technology.
FedEx Freight: This segment is a leading North American provider of less than truckload freight services operating through approximately 355 service centers and a fleet of nearly 30,000 motorized vehicles as of May 31, 2025, with a workforce of about 40,000 employees.
It offers service tiers such as FedEx Freight Priority for time critical shipments, FedEx Freight Economy for cost sensitive needs, and FedEx Freight Direct for large and bulky items delivered to residential or business doors.
Additional offerings include volume services, retail flex solutions, and cross border capabilities between the United States, Canada, and Mexico, positioning it to meet diverse shipper requirements across the continent.

FedEx maintains a strong competitive position in the global transportation and logistics industry, facing primary rivals such as United Parcel Service, DHL, regional carriers, and emerging logistics providers while leveraging advantages that are difficult to replicate. Its competitive edge stems from the world’s largest all cargo air fleet, an extensive integrated air ground network, a universally recognized brand, and sustained investment in technology through initiatives like the FedEx Dataworks platform, the fdx commerce solution, and advanced tracking tools such as SenseAware. These assets enable FedEx to offer reliable, time definite service, extensive geographic reach, and innovative digital solutions that enhance supply chain visibility and efficiency for a broad range of customers.

FedEx serves a diverse customer base that includes individual consumers, small and medium-sized enterprises, large multinational corporations, and e commerce retailers who rely on its shipping, logistics, and retail solutions. Key retail partners that provide access points for its services include Walgreens, Dollar General, and Walmart stores where FedEx Office locations are embedded, as well as numerous independent drop-off locations and online platforms. The company also supports manufacturers, healthcare providers, and technology firms with specialized offerings such as temperature controlled shipping, customs brokerage, and supply chain consulting, demonstrating its ability to meet varied industry needs.

Investment Thesis

▲ Bull case

FedEx's strategic spin-off of FedEx Freight, completed in June 2026, unlocks significant value by allowing both entities to focus on their core competencies, with the remaining FedEx business now able to streamline operations and allocate capital more efficiently toward high-growth areas like AI-driven logistics and same-day delivery services, as evidenced by the company's reaffirmed FY26 adjusted profit forecast of $19.30-$20.10 per share despite near-term headwinds, indicating underlying resilience in its Express segment.
The partnership with OneRail to launch FedEx SameDay Local addresses a critical shift in consumer behavior, where 96% of shoppers define fast delivery as same-day and nearly half are more likely to complete a purchase when this option is available, creating a scalable solution that leverages a national network of over 1,000 delivery providers without requiring infrastructure changes, positioning FedEx to capture market share from competitors like Amazon in the rapidly growing last-mile delivery space.
FedEx's enterprise-wide AI literacy initiative, developed in partnership with Accenture and involving role-based training for its 440,000 global employees, is driving measurable efficiency gains and innovation, with frontline workers increasingly seeking corporate roles and data scientists forming communities of practice, which will enhance operational excellence across tracking, returns, and network optimization while reducing long-term costs through automation and better decision-making.
The inclusion of FedEx Freight Holding Company in the Dow Jones Transportation Average effective June 1, 2026, validates its status as a premier North American LTL carrier and provides increased visibility and liquidity for the spun-off entity, which is projected to generate medium-term revenue growth of 4-6% CAGR and adjusted operating income growth of 10-12% CAGR, with free cash flow generation exceeding $1.0 billion and conversion above 90%, reflecting a strong, standalone business model poised for sustainable value creation.
FedEx's proactive engagement in the tariff refund process under the International Emergency Economic Powers Act, including filing claims with CBP and committing to pass refunds to customers, demonstrates operational agility in navigating regulatory shifts, potentially returning capital to both the company and its clients while reinforcing its reputation as a responsive and customer-centric logistics provider amid evolving trade policies.

FedEx's strategic spin-off of FedEx Freight, completed in June 2026, unlocks significant value by allowing both entities to focus on their core competencies, with the remaining FedEx business now able to streamline operations and allocate capital more efficiently toward high-growth areas like AI-driven logistics and same-day delivery services, as evidenced by the company's reaffirmed FY26 adjusted profit forecast of $19.30-$20.10 per share despite near-term headwinds, indicating underlying resilience in its Express segment.
The partnership with OneRail to launch FedEx SameDay Local addresses a critical shift in consumer behavior, where 96% of shoppers define fast delivery as same-day and nearly half are more likely to complete a purchase when this option is available, creating a scalable solution that leverages a national network of over 1,000 delivery providers without requiring infrastructure changes, positioning FedEx to capture market share from competitors like Amazon in the rapidly growing last-mile delivery space.
FedEx's enterprise-wide AI literacy initiative, developed in partnership with Accenture and involving role-based training for its 440,000 global employees, is driving measurable efficiency gains and innovation, with frontline workers increasingly seeking corporate roles and data scientists forming communities of practice, which will enhance operational excellence across tracking, returns, and network optimization while reducing long-term costs through automation and better decision-making.
The inclusion of FedEx Freight Holding Company in the Dow Jones Transportation Average effective June 1, 2026, validates its status as a premier North American LTL carrier and provides increased visibility and liquidity for the spun-off entity, which is projected to generate medium-term revenue growth of 4-6% CAGR and adjusted operating income growth of 10-12% CAGR, with free cash flow generation exceeding $1.0 billion and conversion above 90%, reflecting a strong, standalone business model poised for sustainable value creation.
FedEx's proactive engagement in the tariff refund process under the International Emergency Economic Powers Act, including filing claims with CBP and committing to pass refunds to customers, demonstrates operational agility in navigating regulatory shifts, potentially returning capital to both the company and its clients while reinforcing its reputation as a responsive and customer-centric logistics provider amid evolving trade policies.

▼ Bear case

The successful ratification of the pilots' union contract, which grants approximately 40% wage increases in 2026 followed by 3% annual raises through 2030, represents a significant and structural increase in labor costs for FedEx's air operations, which operate the world's largest cargo air fleet with 391 jets and 317 turboprop planes, potentially pressuring margins in the high-margin Express segment that drove recent outperformance and limiting flexibility to absorb fuel price volatility or economic downturns.
Despite management's reaffirmation of the FY26 outlook, the midpoint of FedEx's implied fourth-quarter adjusted profit per share guidance of $5.80 fell short of the analysts' average estimate of $5.85 per share, signaling that even after a strong third-quarter beat in the Express segment, the company is struggling to meet expectations in the current quarter, suggesting that cost pressures from labor, fuel, and network investments may be outweighing revenue gains.
The separation of FedEx Freight, while strategically sound, introduces execution risks including potential dis-synergies, increased insurance and claims expenses from vehicle accidents and workers' compensation, and the challenge of maintaining service quality without the scale and diversification of the former integrated network, particularly as FedEx Freight faces intense competition in the LTL market and must now independently manage capital allocation, technology investments, and labor relations without the backing of the parent company's balance sheet.
FedEx's heavy reliance on the Express segment for profitability creates vulnerability to shifts in customer behavior, as rising fuel costs and geopolitical tensions—such as the U.S.-Israeli conflict impacting Iran—have already prompted customers to trade down from premium services to more economical options, and with the company having suspended most Middle East operations and rerouting shipments, its global network flexibility is being tested in ways that could permanently alter demand patterns toward lower-margin services.
Although FedEx highlights its AI literacy initiative as transformative, the program remains in its infancy with no standardized metrics for success, and the company admits it is measuring AIQ (AI quotient) without attributing outcomes solely to AI, raising concerns that the initiative may deliver incremental improvements rather than the step-change efficiency gains needed to offset structural cost increases from labor contracts and capital-intensive network modernization efforts like Network 2.0.

The successful ratification of the pilots' union contract, which grants approximately 40% wage increases in 2026 followed by 3% annual raises through 2030, represents a significant and structural increase in labor costs for FedEx's air operations, which operate the world's largest cargo air fleet with 391 jets and 317 turboprop planes, potentially pressuring margins in the high-margin Express segment that drove recent outperformance and limiting flexibility to absorb fuel price volatility or economic downturns.
Despite management's reaffirmation of the FY26 outlook, the midpoint of FedEx's implied fourth-quarter adjusted profit per share guidance of $5.80 fell short of the analysts' average estimate of $5.85 per share, signaling that even after a strong third-quarter beat in the Express segment, the company is struggling to meet expectations in the current quarter, suggesting that cost pressures from labor, fuel, and network investments may be outweighing revenue gains.
The separation of FedEx Freight, while strategically sound, introduces execution risks including potential dis-synergies, increased insurance and claims expenses from vehicle accidents and workers' compensation, and the challenge of maintaining service quality without the scale and diversification of the former integrated network, particularly as FedEx Freight faces intense competition in the LTL market and must now independently manage capital allocation, technology investments, and labor relations without the backing of the parent company's balance sheet.
FedEx's heavy reliance on the Express segment for profitability creates vulnerability to shifts in customer behavior, as rising fuel costs and geopolitical tensions—such as the U.S.-Israeli conflict impacting Iran—have already prompted customers to trade down from premium services to more economical options, and with the company having suspended most Middle East operations and rerouting shipments, its global network flexibility is being tested in ways that could permanently alter demand patterns toward lower-margin services.
Although FedEx highlights its AI literacy initiative as transformative, the program remains in its infancy with no standardized metrics for success, and the company admits it is measuring AIQ (AI quotient) without attributing outcomes solely to AI, raising concerns that the initiative may deliver incremental improvements rather than the step-change efficiency gains needed to offset structural cost increases from labor contracts and capital-intensive network modernization efforts like Network 2.0.

Geographical Breakdown of Revenue (2026)

Peer group

Peer Comparison

Companies in the Parcel Delivery

S.No.	Ticker	Company	match	Market Cap	P/E	P/S	Total Debt (Qtr)
1	UPS	United Parcel Service Inc	primary	84.59 Bn	18.51	0.94	24.48 Bn
2	FDX	Fedex Corp	primary	73.62 Bn	16.61	0.78	25.88 Bn
3	ZTO	ZTO Express (Cayman) Inc.	primary	16.53 Bn	11.12	2.12	0.09 Bn
4	UBER	Uber Technologies, Inc	secondary	145.01 Bn	14.89	2.63	16.72 Bn
5	CSX	Csx Corp	secondary	89.70 Bn	27.57	6.18	18.86 Bn
6	MMM	3M Co	secondary	85.28 Bn	28.31	3.39	12.55 Bn
7	CAH	Cardinal Health Inc	secondary	56.55 Bn	33.17	0.22	8.89 Bn
8	JD	JD.com, Inc.	secondary	38.49 Bn	7.27	0.12	7.83 Bn

Fedex FDX

About

Investment Thesis

Consolidation Items Breakdown of Revenue (2026)

Geographical Breakdown of Revenue (2026)

Peer Comparison

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