Fedex Corp 8-K, filed Oct 28, 2026
Fedex Corp (FDX)
8-K
2026-10-28
For: 2026-10-28
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October 28, 2026
About this 8-K
Fedex Corp filed this 8-K on October 28, 2026.
FedEx Corp. reported revenue of $22.9 billion and adjusted diluted EPS of $3.74 for September 30, 2026, and raised its calendar 2026 adjusted diluted EPS forecast to $18.00 to $18.60. It completed $2.0 billion of stock repurchases. AI summary
Items reported
- Item 2.02: Financial results
- Item 9.01: Financial statements and exhibits
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): October 28, 2026
(Exact name of registrant as specified in its charter)
Commission File Number 1-15829
| (State or other jurisdiction of | (IRS Employer | |||||||
| incorporation) | Identification No.) | |||||||
| (Address of principal executive offices) | (ZIP Code) | |||||||
Registrant’s telephone number, including area code: (901) 818-7500
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
| Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
EXPLANATORY NOTE
The information in this Report, including Exhibit 99.1, is being furnished pursuant to Item 2.02 of Form 8-K and General Instruction B.2 thereunder. Such information shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended.
SECTION 2. FINANCIAL INFORMATION.
Item 2.02. Results of Operations and Financial Condition.
Attached as Exhibit 99.1 and incorporated herein by reference is a copy of FedEx Corporation’s press release, dated October 28, 2026, announcing its financial results for the fiscal quarter ended September 30, 2026.
SECTION 9. FINANCIAL STATEMENTS AND EXHIBITS.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
Exhibit Number | Description | |||||||
| 99.1 | ||||||||
| 104 | Cover Page Interactive Data File (the cover page XBRL tags are embedded within the Inline XBRL document). | |||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
FedEx Corporation | ||||||||||||||
Date: October 28, 2026 | By: | /s/ Claude F. Russ | ||||||||||||
Claude F. Russ | ||||||||||||||
| Enterprise Vice President, Finance and | ||||||||||||||
| Interim Chief Financial Officer and | ||||||||||||||
| Interim Chief Accounting Officer | ||||||||||||||
FedEx Reports Strong Third Quarter Results
Completed $2 Billion of Share Repurchases in June-September Period
Raises Full-year Calendar 2026 Earnings Outlook
MEMPHIS, Tenn., October 28, 2026 ... FedEx Corp. (NYSE: FDX) today reported the following consolidated results for the quarter ended September 30 (adjusted measures exclude the items listed below):
| Three Months Ended | |||||||||||||||||||||||
| (Continuing Operations) | |||||||||||||||||||||||
| September 30, 2026 | September 30, 2025 | ||||||||||||||||||||||
| As Reported (GAAP) | Adjusted (non-GAAP) | As Reported (GAAP) | Adjusted (non-GAAP) | ||||||||||||||||||||
| Revenue | $22.9 billion | $22.9 billion | $20.4 billion | $20.4 billion | |||||||||||||||||||
| Operating income | $1.07 billion | $1.20 billion | $0.97 billion | $1.03 billion | |||||||||||||||||||
| Operating margin | 4.7% | 5.3% | 4.8% | 5.1% | |||||||||||||||||||
| Net income | $0.29 billion | $0.90 billion | $0.65 billion | $0.69 billion | |||||||||||||||||||
| Diluted EPS | $1.21 | $3.74 | $2.73 | $2.93 | |||||||||||||||||||
This year’s and last year’s quarterly consolidated results have been adjusted for:
| Three Months Ended | |||||||||||
| Impact per diluted share | September 30, 2026 | September 30, 2025 | |||||||||
| Loss on short-term investment | $5.18 | $— | |||||||||
| Gain on extinguishment of debt | (1.97) | — | |||||||||
| Restructuring, exit and other costs | (0.68) | 0.20 | |||||||||
Consolidated operating results improved in the third quarter, driven by increased package base yields, higher package volumes, and continued structural cost reductions from business optimization initiatives. These factors were partially offset by increased purchased transportation rates, higher wage rates and variable compensation expenses, and the financial impact of global trade policy changes.
“As our strong operating results and adjusted free cash flow demonstrate, FedEx is winning across high-value market segments while we optimize our network, driving an increase to our full-year outlook,” said Raj Subramaniam, FedEx Corp. president and chief executive officer. “As we advance our transformation, we
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remain committed to disciplined operational execution to reduce our cost-to-serve while focusing on profitable growth. We have the right strategy in place to continue to be the world’s premier B2B parcel and air freight provider, leverage our digital insights to unlock new markets, and use disciplined capital allocation to create additional stockholder value.”
Express U.S. Domestic segment operating income increased during the quarter, driven by higher package yields, increased package volume, improved service mix, and continued cost savings from transformation initiatives. These factors were partially offset by increased purchased transportation rates, and higher salaries and benefits expenses.
Express International segment operating results increased during the quarter, primarily due to increased base yields, higher international export volume, and increased freight weight. These factors were partially offset by higher wage rates, increased purchased transportation rates, and the financial impact of global trade policy changes.
FedEx Freight Spin-Off
FedEx completed the spin-off of FedEx Freight on June 1, 2026, retaining a 19.9% ownership interest in FedEx Freight. FedEx recognized a loss of $1.2 billion during the quarter within “Gain/(loss) on short-term investment” on the income statement. The carrying value of this equity security totaled $3.3 billion at September 30, 2026 and is recorded within “Short-term investment” in the condensed consolidated balance sheets.
FedEx utilized cash proceeds from the approximately $4.1 billion dividend received from FedEx Freight following the spin-off, as well as cash on hand, to fund cash tender offers for approximately $4.9 billion aggregate principal amount of outstanding debt securities, resulting in a non-GAAP, pre-tax gain of $627 million.
FedEx Supply Chain Sale
On October 1, 2026, FedEx completed the sale of its subsidiary FedEx Supply Chain to CMA CGM Group for a purchase price of approximately $1.4 billion. The transaction represents another important step in the ongoing transformation of FedEx, advancing its strategy to simplify its portfolio, sharpen its focus, and concentrate resources on the areas where the company is best positioned to create long-term value.
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2027 Rate Increases
As previously announced, effective January 4, 2027, FedEx parcel shipping rates will increase by an average of 5.9%. Details related to these and additional changes to rates and surcharges are available at fedex.com/en-us/shipping/rate-changes.html.
Cash and Capital Returns
Cash on-hand as of September 30, 2026 was $8 billion, which included approximately $2.7 billion in IEEPA tariff refunds held for refund to customers.
FedEx completed $2.0 billion in stock repurchases via open market and accelerated share repurchase transactions in June through September. Approximately 6.3 million shares were repurchased, with the decrease in outstanding shares benefiting third quarter results by $0.02 per diluted share. FedEx will continue to be opportunistic with stock repurchases. As of September 30, 2026, $4.3 billion remained available for repurchases under the company’s 2026 stock repurchase authorization.
“Our solid third quarter results and higher 2026 financial outlook reflect the focused execution of our strategy, demonstrating momentum toward our 2029 financial targets,” said Claude Russ, FedEx Corp. enterprise vice president and interim chief financial officer. “Our decision to repurchase $2 billion of FedEx stock displays our conviction in achieving our 2029 financial targets and our commitment to deploy our strong free cash flow to increase stockholder returns.”
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Outlook
For calendar year 2026, FedEx is revising its forecast as follows:
| Financial Metric | Forecast Value1 | Additional Details & Exclusions | ||||||
| Revenue Growth | ~12% YoY | Compared to the prior forecast of ~11%. | ||||||
| Diluted EPS (Continuing Operations) | $35.30 to $35.90 | Compared to the prior forecast of $16.55 to $17.75 per diluted share, which excluded impacts related to MTM accounting for the FedEx Freight investment and gain on extinguishment of debt. Prior to additional CY26 MTM adjustments for retirement plan accounting. | ||||||
| Adjusted Diluted EPS (Continuing Operations) | $18.00 to $18.60 | Compared to the prior forecast of $16.90 to $18.10 per diluted share. Also excludes MTM adjustments for retirement plan accounting, adjustments related to MTM accounting for the FedEx Freight investment, gain on extinguishment of debt, and restructuring, exit and other costs. | ||||||
| Effective Tax Rate (ETR) | ~22.5% | Compared to the prior forecast of ~23%. Prior to MTM adjustments for retirement plan accounting, adjustments related to MTM accounting for the FedEx Freight investment, and a $263 million deferred income tax benefit on FedEx Supply Chain basis difference. | ||||||
| Pension Contributions | $475 million | Unchanged from the prior forecast. | ||||||
| Capital Spending | $3.9 billion | Unchanged from the prior forecast. Prioritizes investments in network optimization and efficiency improvement, including fleet and facility modernization and automation. | ||||||
(1) As of October 28, 2026
These forecasts assume FedEx’s current economic forecast and fuel price expectations, and no additional adverse economic, geopolitical, or international trade-related developments. FedEx’s ETR and EPS forecasts are based on current law and related regulations and guidance.
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Corporate Overview
FedEx Corp. (NYSE: FDX) provides customers and businesses worldwide with a broad portfolio of transportation, e-commerce and business services. With annual revenue of $90 billion, the company offers integrated business solutions utilizing its flexible, efficient, and intelligent global network. Consistently ranked among the world's most admired and trusted employers, FedEx inspires its more than 450,000 employees to remain focused on safety, the highest ethical and professional standards and the needs of their customers and communities. FedEx is committed to connecting people and possibilities around the world responsibly and resourcefully, with a goal to achieve carbon-neutral operations by 2040. To learn more, please visit fedex.com/about.
Additional information and operating data are contained in the company’s annual report, Form 10-K, Form 10-Qs, Form 8-Ks and Statistical Books. These materials, as well as a webcast of the earnings release conference call to be held at 5:30 p.m. EDT on October 28, are available on the company’s website at investors.fedex.com. A replay of the conference call webcast will be posted on our website following the call.
The Investor Relations page of our website, investors.fedex.com, contains a significant amount of information about FedEx, including our SEC filings and financial and other information for investors. The information that we post on our Investor Relations website could be deemed to be material information. We encourage investors, the media and others interested in the company to visit this website from time to time, as information is updated and new information is posted.
Certain statements in this press release may be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements regarding expected cost savings, future financial targets, business strategies, management’s views with respect to future events and financial performance, and the assumptions underlying such expected cost savings, targets, strategies, and statements. Forward-looking statements include those preceded by, followed by or that include the words “will,” “may,” “could,” “would,” “should,” “believes,” “expects,” “forecasts,” “anticipates,” “plans,” “estimates,” “targets,” “projects,” “intends,” “determined to,” or similar expressions. Such forward-looking statements are subject to risks, uncertainties and other factors which could cause actual results to differ materially from historical experience or from future results expressed or implied by such forward-looking statements. Potential risks and uncertainties include, but are not limited to, economic conditions in the global markets in which we operate; uncertainty and additional volatility in the global trade environment; our ability to successfully implement our business strategies and global transformation program and network optimization initiatives, including Network 2.0 and Tricolor, effectively
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respond to changes in market dynamics, and achieve the anticipated benefits of such strategies and actions; our ability to achieve our cost reduction initiatives and financial performance goals, including our 2029 financial performance targets; our ability to achieve the anticipated benefits of the tax-free full separation of the FedEx Freight business into a new publicly traded company (the “FedEx Freight Spin-Off”); the possibility of disruption, including changes to existing business relationships, disputes, litigation, or unanticipated costs in connection with the FedEx Freight Spin-Off; the timing and amount of any costs or benefits or any specific outcome, transaction, or change (of which there can be no assurance), or the terms, timing, and structure thereof, related to our global transformation program and other ongoing reviews and initiatives; a significant data breach or other disruption to our technology infrastructure; damage to our reputation or loss of brand equity; our ability to meet our labor and purchased transportation needs while controlling related costs; failure of third-party service providers to perform as expected, or disruptions in our relationships with those providers or their provision of services to FedEx; the effect of any international conflicts or terrorist activities, including as a result of the current conflicts between Russia and Ukraine and in the Middle East; evolving or new U.S. domestic or international laws and government regulations, policies, and actions, including regulatory and/or legal compliance requirements that can affect our ability to efficiently or fully utilize our aircraft; changes in fuel prices or currency exchange rates, including significant increases in fuel prices as a result of the ongoing conflicts between Russia and Ukraine and in the Middle East and other geopolitical and regulatory developments; the effect of intense competition; our ability to match capacity to shifting volume levels; an increase in self-insurance accruals and expenses; failure to receive or collect expected insurance coverage; loss or delay in the collection of accounts receivable, including those related to tariffs in light of recent judicial rulings; the effect of technology developments, including autonomous technology and artificial intelligence; our ability to effectively operate, integrate, leverage, and grow acquired businesses and complete and realize the anticipated benefits of acquisitions and other strategic transactions including FedEx's investment in InPost, as a consortium member, and related commercial agreements; noncash impairment charges related to our goodwill and certain deferred tax assets; the future rate of e-commerce growth; future guidance, regulations, interpretations, challenges, or judicial decisions related to tariffs and our tax positions; labor-related disruptions; legal challenges or changes related to service providers contracted to conduct certain linehaul and pickup-and-delivery operations and the drivers providing services on their behalf and the coverage of U.S. employees at Federal Express Corporation under the Railway Labor Act of 1926, as amended; our ability to quickly and effectively restore operations following adverse weather or a localized disaster or disturbance in a key geography; the effects of a widespread outbreak of an illness or any other communicable disease or public health crises; any liability resulting from and the costs of defending against litigation, including refunds of tariffs; our ability to achieve or demonstrate progress on our goal of carbon-neutral operations by 2040; successful completion
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of future stock repurchases; and other factors which can be found in FedEx Corp.’s and its subsidiaries’ press releases and FedEx Corp.’s filings with the SEC, including our Annual Report on Form 10-K for the fiscal year ended May 31, 2026 and subsequent Quarterly Reports on Form 10-Q. Any forward-looking statement speaks only as of the date on which it is made. We do not undertake or assume any obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.
Media Contact:
Caitlin Maier
901-434-8100
mediarelations@fedex.com
Investor Relations Contact:
Jeni Hollander
901-818-7200
ir@fedex.com
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RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
TO GAAP FINANCIAL MEASURES
Results for the three months ended September 30, 2026 and 2025
The company reports its financial results in accordance with accounting principles generally accepted in the United States (“GAAP” or “reported”). We have supplemented the reporting of our financial information determined in accordance with GAAP with certain non-GAAP (or “adjusted”) financial measures, including our adjusted consolidated operating income and margin, income taxes, net income and diluted earnings per share, adjusted Express U.S. Domestic segment operating income and margin, and adjusted Express International segment operating income and margin for the 3-months ended September 30, 2026 and 2025. These financial measures are based on continuing operations and have been adjusted to exclude the effects of the following items (as applicable):
•Gain/Loss on retained investment in FedEx Freight: On June 1, 2026, FedEx completed the spin-off of FedEx Freight into an independent, publicly traded company (the “Spin-Off”). Following the Spin-Off, we retained a 19.9% ownership interest in FedEx Freight, which is accounted for as an equity security and recorded at fair value. Changes in fair value are recognized through net income.
•Gain on extinguishment of debt: On July 14, 2026, FedEx utilized the cash proceeds from the dividend received from FedEx Freight in connection with the Spin-Off, as well as cash on hand, to complete cash tender offers for certain outstanding debt securities. The gain on partial extinguishment is net of a proportional amount of the related unamortized discount, premium and debt issuance costs attributable to the repurchased securities.
•Restructuring, exit and other costs incurred: These costs relate to the multi-year restructuring, business realignment, and exit activities designed to improve operating efficiency, reduce costs, or optimize FedEx’s business portfolio. These costs also include those related to the Spin-Off and FedEx’s change in fiscal year end from May 31 to December 31. These costs were primarily related to severance, incentive payments to contracted service providers, and professional services.
◦Deferred income tax benefit on FedEx Supply Chain basis difference: A $263 million deferred income tax benefit has been recorded for the difference in the U.S. income tax and US GAAP book basis with respect to the FedEx Supply Chain business that was classified to held for sale in the third quarter.
The income tax effect of these costs is calculated based upon the tax laws and statutory income tax rates applicable in the tax jurisdiction(s) of the underlying non-GAAP adjustment. The impact of these non-GAAP items on the company's
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effective tax rate represents the difference in the effective tax rate calculated with and without the non-GAAP adjustment.
We believe these adjusted financial measures facilitate analysis and comparisons of our ongoing business operations because they exclude items that may not be indicative of, or are unrelated to, the company's and our business segments' core operating performance, and may assist investors with comparisons to prior periods and assessing trends in our underlying businesses. These adjustments are consistent with how management views our businesses. Management uses these non-GAAP financial measures in making financial, operating, and planning decisions and evaluating the company's and each business segments' ongoing performance.
Our non-GAAP financial measures are intended to supplement and should be read together with, and are not an alternative or substitute for, and should not be considered superior to, our reported financial results. Accordingly, users of our financial statements should not place undue reliance on these non-GAAP financial measures. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies' non-GAAP financial measures having the same or similar names. As required by SEC rules, the tables below present a reconciliation of our presented non-GAAP financial measures to the most directly comparable GAAP measures.
Calendar 2026 Earnings Per Share and Effective Tax Rate Forecasts
Our calendar 2026 EPS forecast is a non-GAAP financial measure because it excludes MTM adjustments for retirement plan accounting, MTM accounting for the FedEx Freight investment, gain on extinguishment of debt, and estimated restructuring, exit and other costs.
Our calendar 2026 ETR forecast is a non-GAAP financial measure because it excludes the effect of MTM adjustments for retirement plan accounting, MTM accounting for the FedEx Freight investment, and a $263 million deferred income tax benefit on FedEx Supply Chain basis difference.
We have provided these non-GAAP financial measures for the same reasons that were outlined above for historical non-GAAP measures. The adjustments reflected in our calendar 2026 EPS and ETR forecasts are excluded for the same reasons described above for the corresponding historical non-GAAP measures.
We are unable to predict the amount of the additional MTM adjustments for retirement plan accounting and MTM accounting for the FedEx Freight investment, as they are significantly affected by changes in interest rates and the financial markets, so such adjustments are not included in our calendar 2026 EPS and ETR forecasts. For this reason, a full reconciliation of our calendar 2026 EPS
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and ETR forecasts to the most directly comparable GAAP measures is impracticable. It is reasonably possible, however, that our calendar 2026 MTM adjustments for retirement plan accounting and MTM accounting for the FedEx Freight investment could have a material effect on our calendar 2026 consolidated financial results and ETR.
The table below titled “Calendar 2026 Diluted Earnings Per Share Forecast” outlines the effects of the items that are excluded from our calendar 2026 EPS forecast, other than additional MTM adjustments for retirement plan accounting and MTM accounting for the FedEx Freight investment.
THREE MONTHS ENDED SEPTEMBER 30, 2026
FedEx Corporation
| Diluted Earnings Per Share | |||||||||||||||||||||||||||||
| Operating | Income Taxes(1) | Net Income(2) | |||||||||||||||||||||||||||
| In millions, except per share amounts | Income | Margin | |||||||||||||||||||||||||||
| GAAP measure | $ | 1,067 | 4.7 | % | $ | 134 | $ | 290 | $ | 1.21 | |||||||||||||||||||
Loss on short-term investment(3) | — | — | % | — | 1,238 | 5.18 | |||||||||||||||||||||||
Gain on extinguishment of debt(3) | — | — | % | (159) | (468) | (1.97) | |||||||||||||||||||||||
Restructuring, exit and other costs(4) | 130 | 0.6 | % | 294 | (164) | (0.68) | |||||||||||||||||||||||
| Non-GAAP measure | $ | 1,197 | 5.3 | % | $ | 269 | $ | 896 | $ | 3.74 | |||||||||||||||||||
Express U.S. Domestic Segment
| Operating | |||||||||||||||||
| In millions | Income | Margin | |||||||||||||||
| GAAP measure | $ | 946 | 6.4 | % | |||||||||||||
| Restructuring, exit and other costs | 26 | 0.2 | % | ||||||||||||||
| Non-GAAP measure | $ | 972 | 6.6 | % | |||||||||||||
Express International Segment
| Operating | |||||||||||
| In millions | Income | Margin | |||||||||
| GAAP measure | $ | 220 | 2.9 | % | |||||||
| Restructuring, exit and other costs | 77 | 1.0 | % | ||||||||
| Non-GAAP measure | $ | 297 | 3.9 | % | |||||||
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THREE MONTHS ENDED SEPTEMBER 30, 2025
FedEx Corporation
| Diluted Earnings Per Share | |||||||||||||||||||||||||||||
| Operating | Income Taxes(1) | Net Income(2) | |||||||||||||||||||||||||||
| In millions, except per share amounts | Income | Margin | |||||||||||||||||||||||||||
| GAAP measure | $ | 972 | 4.8 | % | $ | 269 | $ | 645 | $ | 2.73 | |||||||||||||||||||
Restructuring, exit and other costs(4) | 61 | 0.3 | % | 13 | 48 | 0.20 | |||||||||||||||||||||||
| Non-GAAP measure | $ | 1,033 | 5.1 | % | $ | 282 | $ | 693 | $ | 2.93 | |||||||||||||||||||
Express U.S. Domestic Segment
| Operating | |||||||||||
| In millions | Income | Margin | |||||||||
| GAAP measure | $ | 884 | 6.6 | % | |||||||
| Restructuring, exit and other costs | 21 | 0.2 | % | ||||||||
| Non-GAAP measure | $ | 905 | 6.8 | % | |||||||
Express International Segment
| Operating | |||||||||||
| In millions | Income | Margin | |||||||||
| GAAP measure | $ | 192 | 3.0 | % | |||||||
| Restructuring, exit and other costs | 4 | 0.1 | % | ||||||||
| Non-GAAP measure | $ | 196 | 3.1 | % | |||||||
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CALENDAR 2026 DILUTED EARNINGS PER SHARE FORECAST
| Diluted Earnings Per Share | |||||||||||
| In millions, except per share amounts | Adjustments | ||||||||||
Diluted earnings per share from continuing operations (GAAP)(5) | $35.30 to $35.90 | ||||||||||
| Restructuring, exit and other costs | $579 | ||||||||||
| Gain on short-term investment | (3,254) | ||||||||||
| MTM adjustment for retirement plan accounting | (788) | ||||||||||
| Gain on extinguishment of debt | (627) | ||||||||||
| Total adjustments | $(4,090) | ||||||||||
Income tax effect(1) | (50) | ||||||||||
Net of tax effect | $(4,140) | (17.30) | |||||||||
Diluted earnings per share with adjustments (non-GAAP)(5) | $18.00 to $18.60 | ||||||||||
Notes:
| (1) | Income taxes are based on the approximate statutory tax rates applicable to each transaction. FedEx Corporation three months ended September 30, 2026, Income Taxes for “Restructuring, exit and other costs” includes a $263 million deferred income tax benefit on a FedEx Supply Chain basis difference. This benefit is also included in the “Income tax effect” line item above. | |||||||
| (2) | Effect of “total other (expense) income” on net income from continuing operations is not shown. | |||||||
| (3) | These expenses were recognized at Corporate, other, and eliminations. | |||||||
| (4) | These expenses were recognized at Express U.S. Domestic, Express International, and Corporate, other, and eliminations. | |||||||
| (5) | Additional MTM adjustments for retirement plan accounting and adjustments related to MTM accounting for the FedEx Freight investment, which are impracticable to calculate at this time, are excluded. | |||||||
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FEDEX CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||
| In millions, except per share amounts | September 30, 2026 | September 30, 2025 | Percent Change | September 30, 2026 | September 30, 2025 | Percent Change | |||||||||||||||||||||||||||||
| Revenue: | |||||||||||||||||||||||||||||||||||
| Express U.S. Domestic segment | $ | 14,710 | $ | 13,392 | 10 | $ | 43,190 | $ | 38,636 | 12 | |||||||||||||||||||||||||
| Express International segment | 7,465 | 6,363 | 17 | 21,371 | 18,509 | 15 | |||||||||||||||||||||||||||||
Corporate, other, and eliminations(1) | 680 | 677 | — | 2,012 | 2,059 | (2) | |||||||||||||||||||||||||||||
| Total Revenue | 22,855 | 20,432 | 12 | 66,573 | 59,204 | 12 | |||||||||||||||||||||||||||||
| Operating Expenses: | |||||||||||||||||||||||||||||||||||
| Salaries and employee benefits | 7,434 | 7,078 | 5 | 22,503 | 20,508 | 10 | |||||||||||||||||||||||||||||
| Purchased transportation | 6,455 | 5,419 | 19 | 17,953 | 15,508 | 16 | |||||||||||||||||||||||||||||
| Rentals and landing fees | 1,183 | 1,129 | 5 | 3,499 | 3,293 | 6 | |||||||||||||||||||||||||||||
| Fuel | 1,270 | 774 | 64 | 3,434 | 2,257 | 52 | |||||||||||||||||||||||||||||
| Depreciation and amortization | 967 | 972 | (1) | 2,949 | 2,912 | 1 | |||||||||||||||||||||||||||||
| Maintenance and repairs | 794 | 784 | 1 | 2,264 | 2,218 | 2 | |||||||||||||||||||||||||||||
| Other, net | 3,685 | 3,304 | 12 | 10,658 | 9,888 | 8 | |||||||||||||||||||||||||||||
| Total Operating Expenses | 21,788 | 19,460 | 12 | 63,260 | 56,584 | 12 | |||||||||||||||||||||||||||||
| Operating income (loss): | |||||||||||||||||||||||||||||||||||
| Express U.S. Domestic segment | 946 | 884 | 7 | 3,205 | 2,646 | 21 | |||||||||||||||||||||||||||||
| Express International segment | 220 | 192 | 15 | 447 | 326 | 37 | |||||||||||||||||||||||||||||
Corporate, other, and eliminations(1) | (99) | (104) | 5 | (339) | (352) | 4 | |||||||||||||||||||||||||||||
| Total Operating Income | 1,067 | 972 | 10 | 3,313 | 2,620 | 26 | |||||||||||||||||||||||||||||
| Other (Expense) Income: | |||||||||||||||||||||||||||||||||||
| Gain/(loss) on short-term investment | (1,238) | — | NM | 3,254 | — | NM | |||||||||||||||||||||||||||||
| Interest, net | (66) | (125) | (47) | (304) | (364) | (16) | |||||||||||||||||||||||||||||
| Other, non-operating, net | 661 | 67 | 887 | 1,583 | 545 | 191 | |||||||||||||||||||||||||||||
| Total Other (Expense) Income | (643) | (58) | 1009 | 4,533 | 181 | 2405 | |||||||||||||||||||||||||||||
| Income Before Income Taxes | 424 | 914 | (54) | 7,846 | 2,801 | 180 | |||||||||||||||||||||||||||||
| Provision for Income Taxes | 134 | 269 | (50) | 763 | 706 | 8 | |||||||||||||||||||||||||||||
Income from continuing operations | 290 | 645 | (55) | 7,083 | 2,095 | 238 | |||||||||||||||||||||||||||||
Income from discontinued operations, net of taxes | — | 275 | NM | 112 | 1,034 | (89) | |||||||||||||||||||||||||||||
| Net Income | $ | 290 | $ | 920 | (68) | $ | 7,195 | $ | 3,129 | 130 | |||||||||||||||||||||||||
| Continuing operations | $ | 1.21 | $ | 2.73 | (56) | $ | 29.42 | $ | 8.76 | 236 | |||||||||||||||||||||||||
| Discontinued operations | — | 1.16 | NM | 0.47 | 4.32 | (89) | |||||||||||||||||||||||||||||
| Diluted Earnings Per Share | $ | 1.21 | $ | 3.89 | (69) | $ | 29.89 | $ | 13.08 | 129 | |||||||||||||||||||||||||
| Weighted Average Common and | |||||||||||||||||||||||||||||||||||
| Common Equivalent Shares | 239 | 237 | 1 | 240 | 239 | 1 | |||||||||||||||||||||||||||||
| Capital Expenditures | $ | 844 | $ | 587 | 44 | $ | 2,859 | $ | 2,720 | 5 | |||||||||||||||||||||||||
(1) – Includes the FedEx Office, FedEx Supply Chain, and FedEx Dataworks operating segments.
13
FEDEX CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
| In millions, except share amounts | September 30, 2026 | December 31, 2025 | |||||||||
| ASSETS | |||||||||||
| CURRENT ASSETS | |||||||||||
| Cash and cash equivalents | $ | 7,961 | $ | 6,531 | |||||||
| Receivables, less allowances | 10,886 | 11,957 | |||||||||
| Short-term investment | 3,254 | — | |||||||||
| Prepaid expenses and other | 2,256 | 1,361 | |||||||||
Spare parts, supplies, and fuel, less allowances | 646 | 615 | |||||||||
| Current assets of discontinued operations | — | 1,111 | |||||||||
| Total current assets | 25,003 | 21,575 | |||||||||
| PROPERTY AND EQUIPMENT, NET | 39,686 | 38,736 | |||||||||
| OTHER LONG-TERM ASSETS | |||||||||||
| Operating lease right-of-use assets, net | 14,407 | 14,715 | |||||||||
| Goodwill and other assets | 11,329 | 10,448 | |||||||||
| Equity method investment | 2,501 | — | |||||||||
| Non-current assets of discontinued operations | — | 4,837 | |||||||||
| Total other long-term assets | 28,237 | 30,000 | |||||||||
| TOTAL ASSETS | $ | 92,926 | $ | 90,311 | |||||||
| LIABILITIES AND COMMON STOCKHOLDERS' INVESTMENT | |||||||||||
| CURRENT LIABILITIES | |||||||||||
| Accrued and other liabilities | $ | 9,651 | $ | 8,509 | |||||||
| Accounts and notes payable | 6,959 | 4,355 | |||||||||
| Accrued salaries and employee benefits | 2,230 | 2,610 | |||||||||
| Current liabilities of discontinued operations | — | 711 | |||||||||
| Total current liabilities | 18,840 | 16,185 | |||||||||
| LONG-TERM DEBT, LESS CURRENT PORTION | 17,304 | 20,302 | |||||||||
| OTHER LONG-TERM LIABILITIES | |||||||||||
| Operating lease liabilities | 12,262 | 12,671 | |||||||||
| Self-insurance accruals | 4,320 | 4,163 | |||||||||
| Deferred income taxes | 3,011 | 3,486 | |||||||||
| Other liabilities | 2,621 | 2,480 | |||||||||
| Non-current liabilities of discontinued operations | — | 1,743 | |||||||||
| Total other long-term liabilities | 22,214 | 24,543 | |||||||||
| COMMITMENTS AND CONTINGENCIES | |||||||||||
| COMMON STOCKHOLDERS' INVESTMENT | |||||||||||
| Common stock, $0.10 par value, 800 million shares authorized | 32 | 32 | |||||||||
| Additional paid-in capital | 4,861 | 4,418 | |||||||||
| Retained earnings | 49,677 | 43,110 | |||||||||
| Accumulated other comprehensive loss | (1,766) | (1,342) | |||||||||
| Treasury stock, at cost | (18,236) | (16,937) | |||||||||
| Total common stockholders' investment | 34,568 | 29,281 | |||||||||
| TOTAL LIABILITIES AND COMMON STOCKHOLDERS' INVESTMENT | $ | 92,926 | $ | 90,311 | |||||||
14
FEDEX CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
| Nine Months Ended | |||||||||||
| In millions | September 30, 2026 | September 30, 2025 | |||||||||
| Operating Activities: | |||||||||||
| Net income | $ | 7,195 | $ | 3,129 | |||||||
| Adjustments to reconcile net income to cash provided by operating activities: | |||||||||||
| Depreciation and amortization | 3,142 | 3,215 | |||||||||
| Other noncash items, net | 2,205 | 2,385 | |||||||||
| Gain on short-term investment | (3,254) | — | |||||||||
| Gain from early extinguishment of debt | (627) | — | |||||||||
| Changes in operating assets and liabilities, net | (1,213) | (2,091) | |||||||||
| Cash provided by operating activities | 7,448 | 6,638 | |||||||||
| Investing Activities: | |||||||||||
| Purchase of equity method investment | (2,501) | — | |||||||||
| Capital expenditures | (3,045) | (2,925) | |||||||||
| Purchase of investments | (512) | (149) | |||||||||
| Proceeds from sale of investments | 438 | 88 | |||||||||
| Proceeds from asset dispositions and other investing activities, net | 44 | 89 | |||||||||
| Cash used in investing activities | (5,576) | (2,897) | |||||||||
| Financing Activities: | |||||||||||
| Proceeds from debt issuances | 8,943 | 997 | |||||||||
| Principal payments on debt | (7,142) | (741) | |||||||||
| Proceeds from stock issuances | 1,010 | 102 | |||||||||
| Dividends paid | (979) | (1,008) | |||||||||
| Purchases of common stock | (2,000) | (1,732) | |||||||||
| Distribution attributable to the Spin-Off | (251) | — | |||||||||
| Other, net | (67) | (31) | |||||||||
| Cash used in financing activities | (486) | (2,413) | |||||||||
| Effect of exchange rate changes on cash | (56) | 204 | |||||||||
| Net increase in cash and cash equivalents | 1,330 | 1,532 | |||||||||
| Cash and cash equivalents from continuing operations at beginning of period | 6,531 | 4,854 | |||||||||
Cash and cash equivalents from discontinued operations at beginning of period | 100 | 76 | |||||||||
| Cash and cash equivalents at end of period | $ | 7,961 | $ | 6,462 | |||||||
Note: The condensed consolidated statements of cash flows herein have not been recast to reflect discontinued operations for any periods presented.
15
EXPRESS U.S. DOMESTIC SEGMENT
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||
| In millions | September 30, 2026 | September 30, 2025 | Percent Change | September 30, 2026 | September 30, 2025 | Percent Change | |||||||||||||||||||||||||||||
| Revenue: | |||||||||||||||||||||||||||||||||||
| U.S. Package: | |||||||||||||||||||||||||||||||||||
| U.S. priority | $ | 3,142 | $ | 2,826 | 11 | $ | 9,121 | $ | 8,144 | 12 | |||||||||||||||||||||||||
| U.S. deferred | 1,406 | 1,302 | 8 | 4,219 | 3,794 | 11 | |||||||||||||||||||||||||||||
| U.S. ground | 9,545 | 8,748 | 9 | 28,086 | 25,338 | 11 | |||||||||||||||||||||||||||||
| Total package revenue | 14,093 | 12,876 | 9 | 41,426 | 37,276 | 11 | |||||||||||||||||||||||||||||
| U.S. Freight | 366 | 315 | 16 | 1,032 | 900 | 15 | |||||||||||||||||||||||||||||
| Other | 251 | 201 | 25 | 732 | 460 | 59 | |||||||||||||||||||||||||||||
| Total revenue | 14,710 | 13,392 | 10 | 43,190 | 38,636 | 12 | |||||||||||||||||||||||||||||
| Operating expenses: | |||||||||||||||||||||||||||||||||||
| Salaries and employee benefits | 4,624 | 4,471 | 3 | 14,200 | 12,914 | 10 | |||||||||||||||||||||||||||||
| Purchased transportation | 4,473 | 3,778 | 18 | 12,372 | 10,718 | 15 | |||||||||||||||||||||||||||||
| Rentals and landing fees | 687 | 674 | 2 | 2,041 | 1,979 | 3 | |||||||||||||||||||||||||||||
| Fuel | 410 | 263 | 56 | 1,129 | 773 | 46 | |||||||||||||||||||||||||||||
| Depreciation and amortization | 647 | 656 | (1) | 1,954 | 1,960 | — | |||||||||||||||||||||||||||||
| Maintenance and repairs | 529 | 498 | 6 | 1,500 | 1,405 | 7 | |||||||||||||||||||||||||||||
| Other, net | 2,394 | 2,168 | 10 | 6,789 | 6,241 | 9 | |||||||||||||||||||||||||||||
| Total operating expenses | 13,764 | 12,508 | 10 | 39,985 | 35,990 | 11 | |||||||||||||||||||||||||||||
| Operating income | $ | 946 | $ | 884 | 7 | $ | 3,205 | $ | 2,646 | 21 | |||||||||||||||||||||||||
| Operating margin | 6.4% | 6.6% | (20) | bp | 7.4% | 6.8% | 60 | bp | |||||||||||||||||||||||||||
16
EXPRESS U.S. DOMESTIC SEGMENT
OPERATING STATISTICS
(Unaudited)
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||
| In thousands, except yield amounts | September 30, 2026 | September 30, 2025 | Percent Change | September 30, 2026 | September 30, 2025 | Percent Change | |||||||||||||||||||||||||||||
| PACKAGE STATISTICS | |||||||||||||||||||||||||||||||||||
Avg. daily package volume (ADV)(1): | |||||||||||||||||||||||||||||||||||
| U.S. priority | 1,742 | 1,681 | 4 | 1,696 | 1,629 | 4 | |||||||||||||||||||||||||||||
| U.S. deferred | 1,056 | 1,074 | (2) | 1,069 | 1,052 | 2 | |||||||||||||||||||||||||||||
| U.S. ground commercial | 4,521 | 4,370 | 3 | 4,404 | 4,244 | 4 | |||||||||||||||||||||||||||||
| U.S. ground home delivery/economy | 7,051 | 6,969 | 1 | 6,968 | 6,773 | 3 | |||||||||||||||||||||||||||||
| Total U.S. domestic ADV | 14,370 | 14,094 | 2 | 14,137 | 13,698 | 3 | |||||||||||||||||||||||||||||
| Revenue per package (yield): | |||||||||||||||||||||||||||||||||||
| U.S. priority | $ | 28.18 | $ | 26.27 | 7 | $ | 28.15 | $ | 26.17 | 8 | |||||||||||||||||||||||||
| U.S. deferred | 20.81 | 18.96 | 10 | 20.66 | 18.88 | 9 | |||||||||||||||||||||||||||||
| U.S. ground | 12.89 | 12.05 | 7 | 12.93 | 12.04 | 7 | |||||||||||||||||||||||||||||
| U.S. domestic composite | $ | 15.32 | $ | 14.28 | 7 | $ | 15.34 | $ | 14.25 | 8 | |||||||||||||||||||||||||
| FREIGHT STATISTICS | |||||||||||||||||||||||||||||||||||
| Average daily freight pounds: | |||||||||||||||||||||||||||||||||||
| U.S. freight | 2,426 | 2,202 | 10 | 2,275 | 2,208 | 3 | |||||||||||||||||||||||||||||
| Revenue per pound (yield): | |||||||||||||||||||||||||||||||||||
| U.S. freight | $ | 2.36 | $ | 2.23 | 6 | $ | 2.38 | $ | 2.13 | 12 | |||||||||||||||||||||||||
| Operating days | 64 | 64 | — | 191 | 191 | — | |||||||||||||||||||||||||||||
(1) – ADV is calculated on a 5-day-per-week basis.
17
EXPRESS INTERNATIONAL SEGMENT
CONDENSED STATEMENTS OF INCOME
(Unaudited)
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||
| In millions | September 30, 2026 | September 30, 2025 | Percent Change | September 30, 2026 | September 30, 2025 | Percent Change | |||||||||||||||||||||||||||||
| Revenue: | |||||||||||||||||||||||||||||||||||
Intl Package: | |||||||||||||||||||||||||||||||||||
| International priority | $ | 2,677 | $ | 2,325 | 15 | $ | 7,744 | $ | 6,607 | 17 | |||||||||||||||||||||||||
| International economy | 1,680 | 1,403 | 20 | 4,747 | 4,201 | 13 | |||||||||||||||||||||||||||||
International domestic(1) | 1,156 | 1,166 | (1) | 3,478 | 3,354 | 4 | |||||||||||||||||||||||||||||
| Total package revenue | 5,513 | 4,894 | 13 | 15,969 | 14,162 | 13 | |||||||||||||||||||||||||||||
| Freight: | |||||||||||||||||||||||||||||||||||
| International priority | 784 | 588 | 33 | 2,183 | 1,752 | 25 | |||||||||||||||||||||||||||||
| International economy | 658 | 538 | 22 | 1,835 | 1,549 | 18 | |||||||||||||||||||||||||||||
| Total freight revenue | 1,442 | 1,126 | 28 | 4,018 | 3,301 | 22 | |||||||||||||||||||||||||||||
Other | 510 | 343 | 49 | 1,384 | 1,046 | 32 | |||||||||||||||||||||||||||||
Total revenue | 7,465 | 6,363 | 17 | 21,371 | 18,509 | 15 | |||||||||||||||||||||||||||||
| Operating expenses: | |||||||||||||||||||||||||||||||||||
| Salaries and employee benefits | 2,408 | 2,190 | 10 | 6,988 | 6,321 | 11 | |||||||||||||||||||||||||||||
| Purchased transportation | 1,893 | 1,588 | 19 | 5,380 | 4,635 | 16 | |||||||||||||||||||||||||||||
| Rentals and landing fees | 390 | 356 | 10 | 1,143 | 1,020 | 12 | |||||||||||||||||||||||||||||
| Fuel | 859 | 510 | 68 | 2,303 | 1,482 | 55 | |||||||||||||||||||||||||||||
| Depreciation and amortization | 294 | 292 | 1 | 904 | 877 | 3 | |||||||||||||||||||||||||||||
| Maintenance and repairs | 236 | 261 | (10) | 678 | 733 | (8) | |||||||||||||||||||||||||||||
| Other, net | 1,165 | 974 | 20 | 3,528 | 3,115 | 13 | |||||||||||||||||||||||||||||
| Total operating expenses | 7,245 | 6,171 | 17 | 20,924 | 18,183 | 15 | |||||||||||||||||||||||||||||
| Operating income | $ | 220 | $ | 192 | 15 | $ | 447 | $ | 326 | 37 | |||||||||||||||||||||||||
| Operating margin | 2.9 | % | 3.0 | % | (10) | bp | 2.1 | % | 1.8 | % | 30 | bp | |||||||||||||||||||||||
(1) – International Domestic revenue relates to international intra-country operations.
18
EXPRESS INTERNATIONAL SEGMENT
OPERATING STATISTICS
(Unaudited)
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||
| In thousands, except yield amounts | September 30, 2026 | September 30, 2025 | Percent Change | September 30, 2026 | September 30, 2025 | Percent Change | |||||||||||||||||||||||||||||
PACKAGE STATISTICS | |||||||||||||||||||||||||||||||||||
Avg. daily package volume (ADV)(1): | |||||||||||||||||||||||||||||||||||
International priority | 563 | 569 | (1) | 566 | 555 | 2 | |||||||||||||||||||||||||||||
International economy | 625 | 532 | 17 | 599 | 538 | 11 | |||||||||||||||||||||||||||||
International domestic(2) | 1,640 | 1,846 | (11) | 1,679 | 1,848 | (9) | |||||||||||||||||||||||||||||
Total International ADV | 2,828 | 2,947 | (4) | 2,844 | 2,941 | (3) | |||||||||||||||||||||||||||||
Revenue per package (yield): | |||||||||||||||||||||||||||||||||||
International priority | $ | 74.27 | $ | 63.87 | 16 | $ | 71.62 | $ | 62.30 | 15 | |||||||||||||||||||||||||
International economy | 41.98 | 41.23 | 2 | 41.46 | 40.87 | 1 | |||||||||||||||||||||||||||||
International domestic(2) | 11.02 | 9.87 | 12 | 10.85 | 9.50 | 14 | |||||||||||||||||||||||||||||
Composite package yield | $ | 30.46 | $ | 25.96 | 17 | $ | 29.39 | $ | 25.21 | 17 | |||||||||||||||||||||||||
FREIGHT STATISTICS | |||||||||||||||||||||||||||||||||||
Average daily freight pounds: | |||||||||||||||||||||||||||||||||||
International priority | 5,472 | 4,782 | 14 | 5,241 | 4,658 | 13 | |||||||||||||||||||||||||||||
International economy | 13,333 | 11,514 | 16 | 12,772 | 11,424 | 12 | |||||||||||||||||||||||||||||
Total average daily freight pounds | 18,805 | 16,296 | 15 | 18,013 | 16,082 | 12 | |||||||||||||||||||||||||||||
Revenue per pound (yield): | |||||||||||||||||||||||||||||||||||
International priority | $ | 2.24 | $ | 1.92 | 17 | $ | 2.18 | $ | 1.97 | 11 | |||||||||||||||||||||||||
International economy | 0.77 | 0.73 | 5 | 0.75 | 0.71 | 6 | |||||||||||||||||||||||||||||
Composite freight yield | $ | 1.20 | $ | 1.08 | 11 | $ | 1.17 | $ | 1.08 | 8 | |||||||||||||||||||||||||
Operating days | 64 | 64 | — | 191 | 191 | — | |||||||||||||||||||||||||||||
(1) – ADV is calculated on a 5-day-per-week basis.
(2) – International Domestic Statistics relate to international intra-country operations.
19