FedEx (FDX) Q4 2026 earnings summary

Executive summary

• Delivered strong Q4 and FY 2026 results, exceeding initial and revised outlooks, with robust free cash flow and value creation.

• Completed the spin-off of FedEx Freight, positioning both entities for focused growth and network optimization.

• Achieved over $1 billion in transformation-related cost savings, driven by network transformation, cost reduction, and premium segment growth.

• Maintained high customer retention and expanded in key B2B verticals, including healthcare, automotive, aerospace, and data centers.

• Embedded AI into operational processes and launched FedEx Life Sciences to expand healthcare logistics capabilities.

Financial highlights

• FY 2026 consolidated revenue was $94.7 billion, up 8% year-over-year; Q4 revenue reached $25.0 billion, up 13%.

• FY 2026 adjusted operating income was $6.61 billion (7.0% margin), up 8%; Q4 adjusted operating income was $2.09 billion (8.4% margin), up 3%.

• FY 2026 adjusted EPS reached $20.24; Q4 adjusted EPS was $6.31.

• Achieved $4.7 billion in adjusted free cash flow, up $800 million from FY 2025.

• CapEx was $3.8 billion (4% of revenue), lowest since company formation.

Outlook and guidance

• CY 2026 revenue growth expected at approximately 11%, including a 3% fuel surcharge benefit.

• Adjusted EPS guidance for CY 2026 is $16.90–$18.10 per diluted share; effective tax rate projected at ~23%.

• CY 2026 CapEx expected to be $3.9 billion; robust free cash flow and $475 million pension contribution planned.

• Targeting $6 billion in adjusted free cash flow by CY 2029.

• Guidance assumes stable economic and fuel conditions, successful stock repurchases, and no major adverse developments.