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$308.55
Market Capi
$73B
Growth-adj P/E (3-yr hist)i
5.9x
Growth-adj P/E (3-yr proj)i
2.2x
P/S 26Ei
1.0x
P/S 28Ei
0.8x
EV/EBIT 26Ei
17x
EV/EBIT 28Ei
12x
P/E 26Ei
22x
P/E 28Ei
13x
P/S 26Ei
1.0x
EV/EBIT 26Ei
17x
P/E 26Ei
22x
P/S 28Ei
0.8x
EV/EBIT 28Ei
12x
P/E 28Ei
13x
Revenue
2026E
$94B
Gross Margini
27%
Hist. CAGRi
-2.0%
Proj. CAGRi
1.7%
EBIT
2026E
$6.5B
Op. Margini
7.7%
Hist. CAGRi
3.9%
Proj. CAGRi
0.3%
Net profit
2026E
$4.1B
Net Margini
4.7%
Hist. CAGRi
2.2%
Proj. CAGRi
5.9%
Business Model
Recent Developments
Average Targeti
$352.43+11%
Consensusi
Outperform
27 analysts covering
Net debti
$12B
Div. Yieldi
1.7%
Buyback Yldi
2.6%
Market Capi
$73B
P/E 26Ei
22x
Adj. P/E (fwd.)i
2.2x
Revenue 26E
$94B
Proj. CAGRi
1.7%
Gross Margini
27%
EBIT 26E
$6.5B
Proj. CAGRi
0.3%
Op. Margini
7.7%
Net Profit 26E
$4.1B
Proj. CAGRi
5.9%
Net Margini
4.7%
Average Targeti
$352.43+11%
Consensusi
Outperform
27 analysts covering
Profile
FedEx Corporation is one of the world's largest transportation and logistics companies, operating a global network for time-definite delivery of packages, documents, and freight. Following the June 2026 spin-off of FedEx Freight, the company's revenue is now concentrated in two primary segments:
The United States accounts for roughly 72% of total revenue, with international express representing the key long-run growth lever.
Industry
FedEx operates in the global parcel and express logistics market alongside UPS and DHL as the primary global competitors. The customer base spans enterprise shippers (large retailers, manufacturers, pharmaceutical companies) and small-business senders who rely on time-definite guarantees. E-commerce continues to shift volume toward ground delivery and residential stops, which carries lower yields than traditional B2B express. The industry is cyclical but essential infrastructure — volumes track trade and consumption, while pricing power depends on network density and service reliability.
Key metrics
Economic moat
FedEx's deepest advantage is its integrated air-and-ground network, which took decades and tens of billions of dollars to build and cannot be replicated at scale. The hub-and-spoke air network, with the Memphis Superhub at its center, gives FedEx near-universal next-day reach across North America — a structural barrier. At the same time, high switching costs lock enterprise shippers into contracts tied to FedEx's proprietary IT systems, rate structures, and pickup/delivery logistics. Brand trust in time-critical delivery further reinforces pricing power in the express segment.
Rajesh Subramaniam
Subramaniam has served as CEO since March 2022, succeeding founder Fred Smith after spending over two decades rising through FedEx's marketing and strategy functions. He is the architect of the DRIVE cost transformation program — the most consequential restructuring in the company's modern history — and has simultaneously led the strategic decision to spin off FedEx Freight, sharpening the company's focus on its core express and parcel network. His tenure is defined by a clear margin-over-volume discipline that represents a meaningful shift from prior growth-first strategy.
Claude Russ
Russ was appointed CFO effective May 31, 2026, stepping into the role at a pivotal moment as FedEx completes the Freight spin-off and enters a new chapter as a streamlined express-and-parcel company. His appointment is recent enough that a full public record of his prior CFO track record is limited, but his promotion coincides with the company's transition to a more capital-disciplined phase focused on free cash flow generation.
Vishal Talwar
Talwar joined FedEx as Chief Technology Officer in August 2025, bringing a mandate to accelerate the company's digital logistics and automation agenda. Technology is increasingly a competitive lever in parcel delivery — from AI-powered routing to predictive network management — and his role is central to FedEx's ambitions to reduce per-package costs through operational automation.
Other key figures
Richard W. Smith serves as Chief Operating Officer, responsible for day-to-day network execution across the express and ground businesses. R. Martin became Chairman of the Board in June 2025, marking the formal separation of the CEO and Chairman roles that had been combined under Fred Smith for decades.
P/S Ratioi
EV/EBITi
P/E Ratioi
Revenue
CAGR (hist. 3-yr)i
0%
CAGR (proj. 3-yr)i
0%
EBIT
CAGR (hist. 3-yr)i
0%
CAGR (proj. 3-yr)i
0%
Net profit
CAGR (hist. 3-yr)i
0%
CAGR (proj. 3-yr)i
0%
Values in billions of USD.
Operating cashflow · Levered Free Cash Flow
Free Cash Flow
CAPEX
Values in billions of USD.
Margins
Rentability
Balance sheet
Values in billions of USD.
Liquidity ratios
Debt-to-Equity-Ratio
Last earnings
For Q3 fiscal 2026 (quarter ended February 28, 2026), FedEx reported revenue of $24.0 billion, up from $22.2 billion in the prior-year quarter — a meaningful acceleration that exceeded expectations. Adjusted operating income came in at $1.62 billion, ahead of both the prior-year result and analyst estimates, driven by yield improvements and ongoing cost reductions under the DRIVE efficiency program.
Adjusted EPS guidance for the full fiscal year was raised to $19.30–$20.10, reflecting management's confidence in the trajectory of the restructuring. The stock responded positively to both the beat and the raised outlook.
Management continued to highlight the DRIVE cost program as the primary earnings driver, with cumulative savings tracking ahead of original targets. Volume trends in the express network showed modest improvement relative to the prior year.
Recent developments
The most consequential recent event was the completion of the FedEx Freight spin-off on June 1, 2026, establishing the LTL trucking unit as an independent publicly traded company under the ticker FDXF on the NYSE. The separation allows FedEx to narrow its focus to its express and parcel network and simplifies the capital allocation story.
On June 8, 2026, FedEx declared a quarterly dividend of $1.22 per share, maintaining the shareholder return commitment following the spin-off. Analysts had anticipated a potential dividend increase tied to the separation, and some still expect an increase at the next declaration.
The newly independent FedEx now operates as a leaner entity. Strategic commentary from management has emphasized e-commerce volume growth and international express as the two primary near-term growth vectors post-separation.
Debate & sentiment
Bulls point to the DRIVE efficiency program as a structural earnings uplift that is still in progress — cost savings are expected to compound further through fiscal 2027, supporting margin expansion even if top-line growth remains modest. The clean post-spin-off structure is also seen as a rerating catalyst, removing the valuation drag of the lower-margin freight segment.
Bears are more cautious on volume recovery in the express network, where softness in global trade and enterprise shipping demand has persisted. Industrial and B2B shipping volumes remain below pre-cycle peaks, and any trade-policy headwinds — particularly tariff-related disruptions — could weigh on international express demand.
A third debated point is capital allocation discipline post-spin-off: the market is watching whether freed-up cash goes toward buybacks and dividends or gets redeployed into capex and network investment, and whether management can sustain FCF growth as restructuring charges eventually fade.
Consensusi
Outperform
Average targeti
$352.43+11%
Highest targeti
$479.00+51%
Lowest targeti
$160.00-50%
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