“And we've now had two consecutive quarters of international volume growth thanks to their determination.”
It shows management pointing to a turn in international volumes, which fell 4% for international domestic but rose in export.
FedEx (FDX) · Transportation
FedEx Q4 FY2026 earnings call: transcript, summary & key numbers
Results filed 23 Jun 2026 · Quarter ended 31 May 2026 · Call 67 min
Read the transcriptOfficial transcript (PDF) ↗Press release ↗Investor relations ↗
Summaries and transcripts are machine-generated and can contain errors.
In brief
FedEx reported fourth quarter revenue of $25.0 billion, GAAP diluted EPS of $6.60 and adjusted diluted EPS of $6.31.
FedEx finished fiscal 2026 with fourth-quarter revenue of $25.0 billion, up from $22.2 billion a year earlier. Higher prices per package and cost savings lifted adjusted operating income to $2.09 billion, and adjusted earnings reached $6.31 per share. Reported earnings were $6.60 per share, down from $6.88. The FedEx Freight spin-off was completed on June 1, 2026, and the company ended the year with $13.3 billion in cash.
Management expects calendar 2026 revenue to grow about 11% and adjusted earnings of $16.90 to $18.10 per share, measured on a base that excludes FedEx Freight. The company is also switching to a December fiscal year-end. The main tension is that wage rates, purchased transportation costs and global trade policy changes are still pushing costs up. FedEx has to keep winning on price and savings to offset them.
Key numbers
- Revenue · GAAP
- $25.0 billion
- Operating income · GAAP
- $1.55 billion
- Adjusted operating margin · non-GAAP
- 8.4%
- Net income · GAAP
- $1.60 billion
- Diluted EPS · GAAP
- $6.60
- Adjusted diluted EPS · non-GAAP
- $6.31
- Operating cash flow (full year, $ millions) · GAAP
- $8.9B
up 13% from a year ago
down 13% from a year ago
compared with 9.1% adjusted a year ago
compared with $1.65 billion a year ago
compared with $6.88 a year ago
compared with $6.07 adjusted a year ago
compared with 7,036 in fiscal 2025
| Segment or metric | Value | Change |
|---|---|---|
| Federal Express segment revenue | $21.6B | up 14% |
| FedEx Freight segment revenue | $2.4B | up 5% |
| Federal Express segment operating margin | 7.7% | down 70 basis points from 8.4% |
| Composite package yield | $17.90 | up 11% |
| Total U.S. domestic average daily package volume (000s) | 14,225 | up 3% |
Where each number comes from
- Revenue: “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 income: “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”
- Adjusted operating margin: “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”
- Net income: “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”
- Diluted EPS: “Net income | $1.60 billion | $1.53 billion | $1.65 billion | $1.46 billion Diluted EPS | $6.60 | $6.31 | $6.88 | $6.07”
- Adjusted diluted EPS: “Net income | $1.60 billion | $1.53 billion | $1.65 billion | $1.46 billion Diluted EPS | $6.60 | $6.31 | $6.88 | $6.07”
- Operating cash flow (full year, $ millions): “Cash provided by operating activities | 8,925 | 7,036 Investing Activities: Capital expenditures | (3,809) | (4,055)”
- Federal Express segment revenue: “Revenue: Federal Express Segment | $21,570 | $18,977 | 14 | $82,273 | $75,304 | 9 FedEx Freight segment | 2,408 | 2,297 | 5”
- FedEx Freight segment revenue: “Revenue: Federal Express Segment | $21,570 | $18,977 | 14 | $82,273 | $75,304 | 9 FedEx Freight segment | 2,408 | 2,297 | 5”
- Federal Express segment operating margin: “Total operating expenses | 19,919 | 17,391 | 15 | 76,361 | 70,419 | 8 Operating income | $1,651 | $1,586 | 4 | $5,912 | $4,885 | 21 Operating margin | 7.7% | 8.4% | (70)”
- Composite package yield: “Composite package yield | $17.90 | $16.14 | 11 | $16.80 | $15.86 | 6 FREIGHT STATISTICS Average daily freight pounds (000s):”
- Total U.S. domestic average daily package volume (000s): “Total U.S. domestic ADV | 14,225 | 13,826 | 3 | 14,585 | 13,954 | 5 International priority | 579 | 561 | 3”
Copied from the press release ↗ and other documents in the SEC filing ↗. A figure is published only if its sentence is in the filing.
| From the filing | Q4 FY2026 | vs year ago | vs last quarter |
|---|---|---|---|
| Revenue | $25.0B | +12.5% | +9.4% |
| Operating income | $1.6B | −13.5% | +45.4% |
| Net income | $1.6B | −3.1% | +450.7% |
| Free cash flow | $1.8B | +71.2% | +72.5% |
| Operating margin | 6.2% | −1.9 pts | +1.5 pts |
Calculated by code from XBRL, not by the model.
Outlook
| Metric | Period | Outlook |
|---|---|---|
| Revenue growth | calendar year 2026 | ~11% YoY |
| Diluted EPS from continuing operations | calendar year 2026 | $16.55 to $17.75 |
| Adjusted diluted EPS from continuing operations | calendar year 2026 | $16.90 to $18.10 |
| Effective tax rate | calendar year 2026 | ~23% |
| Pension contributions | calendar year 2026 | $475 million |
| Capital spending | calendar year 2026 | $3.9 billion |
| Opportunistic share repurchases | calendar year 2026 | up to $1 billion |
Key takeaways
Pricing and cost savings lifted adjusted profit
Adjusted operating income was $2.09 billion versus $2.02 billion a year ago, helped by higher U.S. Domestic and International Priority yields and transformation savings. Composite package yield rose 11% to $17.90.
Reported earnings fell while adjusted earnings rose
GAAP diluted EPS was $6.60 against $6.88 a year ago, while adjusted diluted EPS was $6.31 against $6.07. Retirement plan accounting gains were offset by FedEx Freight spin-off costs of $0.97 per share.
FedEx Freight spin-off completed June 1, 2026
FedEx Freight paid FedEx a cash dividend of approximately $4.1 billion in connection with the spin-off. Ending cash was $13.3 billion, including about $800 million in IEEPA tariff refunds held for customers.
Calendar 2026 outlook points to growth
FedEx forecasts revenue growth of ~11% and adjusted diluted EPS of $16.90 to $18.10 on a base that treats FedEx Freight as discontinued operations. Capital spending is expected at $3.9 billion.
Capex fell to a record low share of revenue
Fiscal 2026 capital spending was $3.8 billion, or 4.0% of revenue, the lowest annual level in company history. FedEx also exceeded its goal of $1 billion of transformation-related cost savings.
Charts
Fourth quarter worked out from the annual figure.
Data
| Q1 FY25 | $21.6B |
| Q2 FY25 | $22.0B |
| Q3 FY25 | $22.2B |
| Q4 FY25 | $22.2B * |
| Q1 FY26 | $22.2B |
| Q2 FY26 | $23.5B |
| Q3 FY26 | $22.9B |
| Q4 FY26 | $25.0B * |
Data
| Q1 FY25 | $3.21 |
| Q2 FY25 | $3.03 |
| Q3 FY25 | $3.76 |
| Q1 FY26 | $3.46 |
| Q2 FY26 | $4.04 |
| Q3 FY26 | $1.21 |
Fourth-quarter EPS appears once the press release is read; filings report it only for the full year.
Data
| Q1 FY25 | 5.0% |
| Q2 FY25 | 4.8% |
| Q3 FY25 | 5.8% |
| Q4 FY25 | 8.1% |
| Q1 FY26 | 5.3% |
| Q2 FY26 | 5.9% |
| Q3 FY26 | 4.7% |
| Q4 FY26 | 6.2% |
Data
| Q1 FY25 | $420.0M |
| Q2 FY25 | $500.0M |
| Q3 FY25 | $1.0B |
| Q4 FY25 | $1.0B |
| Q1 FY26 | $1.1B |
| Q3 FY26 | $1.0B |
| Q4 FY26 | $1.8B |
Operating cash flow minus capital expenditure, from cash flow statements.
What management said
Each quote matches the transcript word for word.
“first from a margin perspective, we are confident that the margin and the transition period”
It signals management's confidence on margins through the transition to the new fiscal calendar, although the transcript is fragmentary.
“Our results demonstrate that we are growing revenue in the most”
It opens management's framing of the quarter around profitable revenue growth, though the transcript excerpt is cut off.
Analyst Q&A
What has been realized so far in the first five years?
An executive said international volumes have now grown for two consecutive quarters.
Questions
What were FedEx's fourth-quarter fiscal 2026 results?
Revenue was $25.0 billion versus $22.2 billion a year earlier, with GAAP diluted EPS of $6.60 and adjusted diluted EPS of $6.31. Adjusted operating income was $2.09 billion at an 8.4% margin.
What is FedEx's outlook for calendar 2026?
FedEx forecasts revenue growth of ~11%, diluted EPS of $16.55 to $17.75 and adjusted diluted EPS of $16.90 to $18.10. It also expects an effective tax rate of ~23% and capital spending of $3.9 billion.
What happened with the FedEx Freight spin-off?
The spin-off was finalized on June 1, 2026. FedEx Freight paid FedEx a cash dividend of approximately $4.1 billion, which is included in the $13.3 billion ending cash balance.
How much did FedEx return to stockholders in fiscal 2026?
FedEx returned approximately $2.2 billion, made up of $776 million of stock repurchases and $1.4 billion of dividends. For calendar 2026 it intends to repurchase up to $1 billion of shares opportunistically.
What is changing about FedEx's fiscal year?
The Board approved moving the fiscal year-end from May 31 to December 31, effective for the period beginning June 1, 2026. FedEx expects to file recasted financial statements reflecting FedEx Freight as discontinued operations by mid-August 2026.
Documents
SEC filing
Transcript
Call recording on YouTube ↗. Official replay ↗. Timestamps jump to the moment.
FedEx also publishes its official transcript (PDF) ↗.
0:00:28
Speaker
Music with excellence.
0:07:36
Executive
Our results demonstrate that we are growing revenue in the most ...improve base pricing.
0:34:19
Consistent with prior practice, the yield bar does not factor in The question, you know, first from a margin perspective, we are confident that the margin and the transition period, but the So call it 1.1 billion of net price costs.
0:51:16
Analyst
What's been realized in the first five years?
0:53:35
Executive
And we've now had two consecutive quarters of international volume growth thanks to their determination.