FedEx (FDX) Q4 2026: Revenue and Earnings Growth — Strong Performance

FedEx Corp. (NYSE: FDX) reported impressive results for the fourth quarter of fiscal 2026, showcasing significant growth compared to the previous year. The company achieved a revenue of $25.0 billion, marking an increase of $2.8 billion or +12.6% year-over-year from $22.2 billion in Q4 2025. Additionally, net income for the quarter was $1.60 billion, a slight decrease of $0.05 billion or -3.0% from $1.65 billion in the same quarter last year.

This quarter's performance is a positive outcome for shareholders, reflecting the effectiveness of FedEx's transformation initiatives and operational strategies. The revenue growth indicates strong demand for FedEx's services, particularly in U.S. Domestic and International Priority package yields, which contributed to the overall revenue increase.

Key Financial Metrics:

• Revenue: $25.0 billion (up $2.8 billion or +12.6% YoY)
• Operating Income: $1.55 billion (down from $1.79 billion YoY)
• Net Income: $1.60 billion (down from $1.65 billion YoY)
• Diluted EPS: $6.60 (down from $6.88 YoY)

Full-Year Performance:

For the full fiscal year 2026, FedEx reported:

• Revenue: $94.7 billion (up $6.8 billion or +7.7% YoY from $87.9 billion)
• Operating Income: $5.46 billion (up from $5.22 billion YoY)
• Net Income: $4.43 billion (up from $4.09 billion YoY)
• Diluted EPS: $18.55 (up from $16.81 YoY)

The full-year results reflect a robust operational performance, with FedEx exceeding its goal of $1 billion in transformation-related cost savings. This achievement is indicative of the company's commitment to enhancing efficiency and profitability.

Shareholder Returns and Guidance:

FedEx returned approximately $2.2 billion to shareholders during fiscal 2026 through $776 million in stock repurchases and $1.4 billion in dividends. The company also announced a 5% increase in the annual dividend on its common stock, which is a positive signal for investors.

Looking ahead, FedEx has provided guidance for calendar year 2026, forecasting:

• Revenue Growth: Approximately 11% YoY
• Diluted EPS: Between $16.55 to $17.75
• Adjusted Diluted EPS: Between $16.90 to $18.10

Forward Catalysts:

Investors should closely monitor FedEx's performance in the upcoming quarters, particularly as the company transitions to its new fiscal year ending December 31. The successful execution of its transformation initiatives and the anticipated growth in revenue and earnings will be critical in maintaining investor confidence and driving stock performance. Additionally, the impact of the FedEx Freight spin-off, which was completed on June 1, 2026, will be a key area to watch as it may influence operational focus and financial metrics moving forward.

In conclusion, FedEx's fourth quarter and full-year results demonstrate a strong operational performance and a commitment to shareholder value, positioning the company well for future growth.

Here are the extracted tables in Markdown format:

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (in millions)

Note: Amounts are in millions.

Fiscal 2026	As Reported	Adjusted	Fiscal 2025	As Reported	Adjusted
Revenue	$94,700	$94,700	$87,900	$87,900	$87,900
Operating income	$5,460	$6,610	$5,220	$5,220	$6,120
Operating margin	5.8%	7.0%	5.9%	5.9%	7.0%
Net income	$4,430	$4,840	$4,090	$4,090	$4,430
Diluted EPS	$18.55	$20.24	$16.81	$16.81	$18.19

CONDENSED CONSOLIDATED BALANCE SHEETS (in millions)

Note: Amounts are in millions.

ASSETS	Year Ended May 31,	2026	2025
Current Assets
Cash and cash equivalents	$	13,311	5,502
Receivables, less allowances		12,672	11,368
Spare parts, supplies, and fuel, less allowances		669	602
Prepaid expenses and other		1,251	914
Total current assets		27,903	18,386
Property and Equipment, at Cost		90,926	87,622
Less accumulated depreciation and amortization		48,882	45,980
Net property and equipment		42,044	41,642
Other Long-Term Assets
Operating lease right-of-use assets, net		16,822	16,453
Goodwill		6,733	6,603
Other assets		5,435	4,543
Total other long-term assets		28,990	27,599
$		98,937	87,627
LIABILITIES AND COMMON STOCKHOLDERS' INVESTMENT
Current Liabilities
Current portion of long-term debt	$	1,676	1,428
Accrued salaries and employee benefits		3,759	2,731
Accounts payable		4,327	3,692
Operating lease liabilities		2,680	2,565
Accrued expenses		5,725	4,995
Short-Term Borrowings		745	—
Total current liabilities		18,912	15,411
Long-Term Debt, Less Current Portion		23,293	19,151
Other Long-Term Liabilities
Deferred income taxes		3,664	4,205
Pension, postretirement healthcare, and other benefit obligations		1,625	1,698
Self-insurance accruals		4,413	4,033
Operating lease liabilities		14,549	14,272
Other liabilities		834	783
Total other long-term liabilities		25,085	24,991
Common Stockholders' Investment
Common stock, $0.10 par value, 800 million shares authorized		32	32
Additional paid-in capital		4,717	4,290
Retained earnings		44,461	41,402
Accumulated other comprehensive loss		-1,227	-1,362
Treasury stock, at cost		-16,336	-16,288
Total common stockholders' investment		31,647	28,074
$		98,937	87,627

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