# FEDEX CORP (FDX) Informational only - not investment advice. CIK: 0001048911 SIC: 4513 Air Courier Services SIC breadcrumb: [Transportation, Communications, Electric, Gas, And Sanitary Services](/division/E/) > [SIC Major Group 45](/major-group/45/) > [SIC 4513 Air Courier Services](/industry/4513/) Latest 10-K filed: 2026-07-20 SEC page: https://www.sec.gov/edgar/browse/?CIK=1048911 Filing source: https://www.sec.gov/Archives/edgar/data/1048911/000104891126000105/fdx-20260531.htm ## At a glance FY2026 · period end 2026-05-31 · filed 2026-07-20 · accession 0001048911-26-000105 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001048911.json | Metric | Value | FY | Provenance | | --- | ---: | ---: | --- | | Revenue | 94,720,000,000 USD | 2026 | verified | | Net income | 4,433,000,000 USD | 2026 | verified | | Assets | 98,937,000,000 USD | 2026 | verified | | Free cash flow | 5,116,000,000 USD | 2026 | computed | | Net margin | 4.68% | 2026 | computed | | Operating margin | 5.77% | 2026 | computed | | Revenue YoY | +7.73% | 2026 | computed | | ROE | 14.01% | 2026 | computed | Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2026 revenue ÷ FY2025 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity. No market price, no rating, no forecast on this site. Not investment advice. ### Peer percentile fingerprint | Ratio | FDX | Peer median | Percentile | N | | --- | ---: | ---: | ---: | ---: | | Net margin | 4.7% | 3.1% | 55 | 12 | | Operating margin | 5.8% | 4.2% | 55 | 12 | | Revenue growth | 7.7% | 3.2% | 82 | 12 | | FCF margin | 5.4% | 3.3% | 73 | 12 | | ROE | 14.0% | 12.2% | 60 | 11 | | ROA | 4.5% | 3.0% | 64 | 12 | | Liabilities / equity | 2.13 | 2.90 | 30 | 11 | | Current ratio | 1.48 | 0.65 | 82 | 12 | Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC major-group 45 SIC Major Group 45, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking. ## Selected Fundamentals | Metric | Value | Unit | FY | Filed | | --- | ---: | --- | ---: | --- | | Revenue | 94720000000 | USD | 2026 | 2026-07-20 | | Net income | 4433000000 | USD | 2026 | 2026-07-20 | | Assets | 98937000000 | USD | 2026 | 2026-07-20 | ## Financials Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-07-20. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001048911.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts. | Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | | --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | | Revenue | | 60,319,000,000 | 65,450,000,000 | 69,693,000,000 | 69,217,000,000 | 83,959,000,000 | 93,512,000,000 | 90,155,000,000 | 87,693,000,000 | 87,926,000,000 | 94,720,000,000 | | Net income | | 2,997,000,000 | 4,572,000,000 | 540,000,000 | 1,286,000,000 | 5,231,000,000 | 3,826,000,000 | 3,972,000,000 | 4,331,000,000 | 4,092,000,000 | 4,433,000,000 | | Operating income | | 4,566,000,000 | 4,272,000,000 | 4,466,000,000 | 2,417,000,000 | 5,857,000,000 | 6,245,000,000 | 4,912,000,000 | 5,559,000,000 | 5,217,000,000 | 5,463,000,000 | | Diluted EPS | | 11.07 | 16.79 | 2.03 | 4.90 | 19.45 | 14.33 | 15.48 | 17.21 | 16.81 | 18.55 | | Operating cash flow | | 4,930,000,000 | 4,674,000,000 | 5,613,000,000 | 5,097,000,000 | 10,135,000,000 | 9,832,000,000 | 8,848,000,000 | 8,312,000,000 | 7,036,000,000 | 8,925,000,000 | | Capital expenditures | | 5,116,000,000 | 5,663,000,000 | 5,490,000,000 | 5,868,000,000 | 5,884,000,000 | 6,763,000,000 | 6,174,000,000 | 5,176,000,000 | 4,055,000,000 | 3,809,000,000 | | Dividends paid | | 426,000,000 | 535,000,000 | 683,000,000 | 679,000,000 | 686,000,000 | 793,000,000 | 1,177,000,000 | 1,259,000,000 | 1,339,000,000 | 1,374,000,000 | | Share buybacks | 2,722,000,000 | 509,000,000 | 1,017,000,000 | 1,480,000,000 | 3,000,000 | | 2,248,000,000 | 1,500,000,000 | 2,500,000,000 | 3,017,000,000 | 796,000,000 | | Assets | | 48,552,000,000 | 52,330,000,000 | 54,403,000,000 | 73,537,000,000 | 82,777,000,000 | 85,994,000,000 | 87,143,000,000 | 87,007,000,000 | 87,627,000,000 | 98,937,000,000 | | Stockholders' equity | | 16,073,000,000 | 19,416,000,000 | 17,757,000,000 | 18,295,000,000 | 24,168,000,000 | 24,939,000,000 | 26,088,000,000 | 27,582,000,000 | 28,074,000,000 | 31,647,000,000 | | Cash and cash equivalents | | 3,969,000,000 | 3,265,000,000 | 2,319,000,000 | 4,881,000,000 | 7,087,000,000 | 6,897,000,000 | 6,856,000,000 | 6,501,000,000 | 5,502,000,000 | 13,311,000,000 | | Free cash flow | | -186,000,000 | -989,000,000 | 123,000,000 | -771,000,000 | 4,251,000,000 | 3,069,000,000 | 2,674,000,000 | 3,136,000,000 | 2,981,000,000 | 5,116,000,000 | ### Ratios ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported. | Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | | --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | | Net margin | | 4.97% | 6.99% | 0.77% | 1.86% | 6.23% | 4.09% | 4.41% | 4.94% | 4.65% | 4.68% | | Operating margin | | 7.57% | 6.53% | 6.41% | 3.49% | 6.98% | 6.68% | 5.45% | 6.34% | 5.93% | 5.77% | | Return on equity | | 18.65% | 23.55% | 3.04% | 7.03% | 21.64% | 15.34% | 15.23% | 15.70% | 14.58% | 14.01% | | Return on assets | | 6.17% | 8.74% | 0.99% | 1.75% | 6.32% | 4.45% | 4.56% | 4.98% | 4.67% | 4.48% | | Liabilities / equity | | 2.02 | 1.70 | 2.06 | 3.02 | 2.43 | 2.45 | 2.34 | 2.15 | 2.12 | 2.13 | | Current ratio | | 1.59 | 1.39 | 1.45 | 1.58 | 1.51 | 1.43 | 1.37 | 1.36 | 1.19 | 1.48 | ## As-reported value updates 2 tracked differences above grepcent's stated thresholds were found between the earliest XBRL-filed value and the value currently on file for the same fiscal period. Ledger: /company/FDX/revisions/ ## Quarterly Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-07-20. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001048911.json. Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived. | Quarter | End date | Revenue | Net income | Diluted EPS | Method | | --- | --- | ---: | ---: | ---: | --- | | 2023-Q1 | 2022-08-31 | | | 3.33 | reported discrete quarter | | 2023-Q2 | 2022-11-30 | | | 3.07 | reported discrete quarter | | 2023-Q3 | 2023-02-28 | | | 3.05 | reported discrete quarter | | 2024-Q1 | 2023-08-31 | 21,681,000,000 | 1,078,000,000 | 4.23 | reported discrete quarter | | 2024-Q2 | 2023-11-30 | 22,165,000,000 | 900,000,000 | 3.55 | reported discrete quarter | | 2024-Q3 | 2024-02-29 | 21,738,000,000 | 879,000,000 | 3.51 | reported discrete quarter | | 2024-Q4 | 2024-05-31 | 22,109,000,000 | 1,474,000,000 | | derived Q4 = FY annual - nine-month YTD | | 2025-Q1 | 2024-08-31 | 21,579,000,000 | 794,000,000 | 3.21 | reported discrete quarter | | 2025-Q2 | 2024-11-30 | 21,967,000,000 | 741,000,000 | 3.03 | reported discrete quarter | | 2025-Q3 | 2025-02-28 | 22,160,000,000 | 909,000,000 | 3.76 | reported discrete quarter | | 2025-Q4 | 2025-05-31 | 22,220,000,000 | 1,648,000,000 | | derived Q4 = FY annual - nine-month YTD | | 2026-Q1 | 2025-08-31 | 22,244,000,000 | 824,000,000 | 3.46 | reported discrete quarter | | 2026-Q2 | 2025-11-30 | 23,469,000,000 | 956,000,000 | 4.04 | reported discrete quarter | | 2026-Q3 | 2026-02-28 | 24,000,000,000 | 1,056,000,000 | 4.41 | reported discrete quarter | | 2026-Q4 | 2026-05-31 | 25,007,000,000 | 1,597,000,000 | | derived Q4 = FY annual - nine-month YTD | ## Filed narrative (10-K & 10-Q) ## Business Verbatim Item 1 Business section from FDX's latest 10-K: [/company/FDX/business/](/company/FDX/business/). ## Risk Factors Verbatim Item 1A Risk Factors from FDX's latest 10-K: [/company/FDX/risk-factors/](/company/FDX/risk-factors/). ## Latest quarter (10-Q) Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/1048911/000104891126000011/fdx-20260228.htm Extracted structurally from real Item 2 body heading to real Item 3/4 boundary. Confidence: high Filing date: 2026-03-19 Report date: 2026-02-28 ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION GENERAL The following Management’s Discussion and Analysis of Results of Operations and Financial Condition (“MD&A”) describes the principal factors affecting the results of operations, liquidity, capital resources, and critical accounting estimates of FedEx Corporation (“FedEx”). This discussion should be read in conjunction with the accompanying quarterly unaudited condensed consolidated financial statements and our Annual Report on Form 10-K for the year ended May 31, 2025 (“Annual Report”). Our Annual Report includes additional information about our significant accounting policies, practices, and the transactions that underlie our financial results, as well as a detailed discussion of the most significant risks and uncertainties associated with our financial condition and operating results. We provide a broad portfolio of transportation, e-commerce, and business services, offering integrated business solutions utilizing our flexible, efficient, and intelligent global network. Our primary operating companies are Federal Express Corporation (“Federal Express”), the world’s largest express transportation company and a leading North American provider of small-package ground delivery services, and FedEx Freight, Inc. (“FedEx Freight”), a leading North American provider of less-than-truckload (“LTL”) freight transportation services. See “Reportable Segments” for further discussion. Additional information on our businesses can be found in our Annual Report. Federal Express operates a unified, fully integrated air-ground express network under the respected FedEx brand. FedEx Freight provides LTL freight transportation services as a separate subsidiary. Federal Express and FedEx Freight represent our major service lines and constitute our reportable segments. In December 2024, we announced that FedEx’s Board of Directors decided to pursue a full separation of FedEx Freight through the capital markets, creating a new publicly traded company. The transaction, which will be implemented through the spin-off of shares of the new company to FedEx stockholders, is expected to be tax-free for U.S. federal income tax purposes for FedEx stockholders and be completed by June 1, 2026. In January 2025, the Board of Directors approved a change in FedEx’s fiscal year end from May 31 to December 31. The planned fiscal year change is expected to be effective June 1, 2026. Except as otherwise specified, references to years indicate our fiscal year ending May 31, 2026 or ended May 31 of the year referenced, and comparisons are to the corresponding period of the prior year. References to our transportation segments include, collectively, the Federal Express segment and the FedEx Freight segment. The key indicators necessary to understand our operating results include: •the overall customer demand for our various services based on macroeconomic factors and the global economy; •the volumes of transportation services provided through our networks, primarily measured by our average daily volume and shipment weight and size; •the mix of services purchased by our customers; •the prices we obtain for our services, primarily measured by yield (revenue per package or pound, revenue per shipment, or hundredweight for LTL freight shipments); •our ability to manage our cost structure (capital expenditures and operating expenses) to match shifting volume levels; and •the timing and amount of fluctuations in fuel prices and our ability to recover incremental fuel costs through our fuel surcharges. Trends Affecting Our Business The following trends significantly affect the indicators discussed above, as well as our business and operating results. See the risk factors identified under Part I, Item 1A. “Risk Factors” in our Annual Report, as updated by our quarterly reports on Form 10-Q, for more information. Additionally, see “Results of Operations – Consolidated Results – Separation and Other Costs – Business Optimization Costs and – Outlook” and “Financial Condition – Liquidity Outlook” below for additional information on efforts we are taking to mitigate adverse trends. Macroeconomic Conditions While macroeconomic risks apply to most companies, we are particularly vulnerable. The transportation industry is highly cyclical and especially susceptible to trends in economic activity. Our primary business is to transport goods, so our business levels are directly -25- Table of Contents tied to the purchase and production of goods and the rate of global trade growth. The decline in U.S. imports of consumer goods that started in late 2022, along with slowed global industrial production, has contributed to weakened business conditions for the transportation industry. Consequently, this environment has led to lower shipments at FedEx Freight, negatively affecting our results in the third quarter and nine months of 2026. Global Trade Policies Since the third quarter of 2025 there have been significant changes within the global trade environment, such as the August 2025 removal of the de minimis exemption for goods imported into the U.S. from countries other than China. The uncertain and evolving global trade environment negatively affected our results in the third quarter and nine months of 2026. Additionally, on February 20, 2026 the U.S. Supreme Court issued a decision invalidating tariffs imposed under the International Emergency Economic Powers Act (“IEEPA”). In response to the Supreme Court’s decision, new Executive Orders were announced aimed at restructuring U.S. tariff policy and exploring alternative statutory authorities under which to impose or maintain tariffs. These actions have contributed to continued uncertainty and volatility in the global trade environment. The financial impact of this ruling is uncertain, as it is unclear to what extent duties will be refunded by CBP, what processes will govern such refunds, or if we can fully collect related accounts receivable. We are evaluating the impact of these developments on our business and financial statements. However, at this time, we cannot reasonably estimate the financial impact, and no adjustments have been recorded. See “Other Business Matters” below for information on related litigation. MD-11 Operational Impact In November 2025, the U.S. Federal Aviation Administration issued an emergency Airworthiness Directive to address a potentially unsafe condition on all Boeing MD-11 aircraft, prohibiting further flight until the aircraft are inspected and all corrective actions are performed. As a result, during the third quarter and nine months of 2026, we experienced operational impacts related to the grounding of our MD-11 aircraft fleet which had an impact on our financial results. Inflation and Interest Rates During the third quarter and nine months of 2026, global inflation declined year-over-year but continued to be elevated. Additionally, global interest rates declined modestly in an effort to curb inflation. We are experiencing pressure on demand for our transportation services, particularly our international export package services, as elevated inflation and interest rates continue to negatively affect consumer and business spending. We expect inflation and elevated interest rates to continue to negatively affect our results of operations for the remainder of 2026. Additional changes in trade policy and the global trade environment could also exacerbate global inflation and interest rates. Fuel We must purchase large quantities of fuel to operate our aircraft and vehicles, and the price and availability of fuel is beyond our control and can be highly volatile. The timing and amount of fluctuations in fuel prices and our ability to recover incremental fuel costs through our fuel surcharges can significantly affect our operating results either positively or negatively in the short-term. During the third quarter and nine months of 2026, higher fuel prices positively affected yields due to increased fuel surcharges and negatively affected fuel expense at Federal Express. Geopolitical Conflicts Given the nature of our business and global operations, geopolitical conflicts and instability may adversely affect our business and results of operations. While we do not expect ongoing geopolitical conflicts between Russia and Ukraine and in the Middle East, or escalations or expansions thereof, to have a direct material effect on our business or results of operations, the broader consequences, including increased fuel prices and volatility in shipping patterns, are adversely affecting the global economy and may also have the effect of heightening other risks disclosed under Part II, Item 1A. “Risk Factors.” Other Business Matters Following the U.S. Supreme Court ruling on February 20, 2026 that certain tariffs imposed under the IEEPA were unlawful, on February 23, 2026, FedEx filed a lawsuit in the U.S. Court of International Trade against the U.S. Customs and Border Protection (“CBP”), the CBP commissioner, and the United States of America seeking a full refund of all IEEPA tariffs that FedEx has paid to the United States. Additionally, five class action lawsuits seeking refunds of IEEPA tariffs from FedEx were filed in U.S. district courts in South Carolina, Florida, New York, Tennessee, and Delaware. -26- Table of Contents RESULTS OF OPERATIONS Many of our operating expenses are directly affected by revenue and volume levels, and we expect these operating expenses to fluctuate on a year-over-year basis consistent with changes in revenue and volumes. Therefore, the discussion of operating expense captions focuses on the key drivers and trends affecting expenses other than those factors strictly related to changes in revenue and volumes. The line item “Other” includes costs associated with outside service contracts (such as information technology services, facilities services, security, and temporary labor), insurance, professional fees, and credit losses. CONSOLIDATED RESULTS The following tables compare summary operating results and changes in revenue and operating income (loss) (dollars in millions, except per share amounts) for the periods ended February 28, 2026 and 2025: [[GREPCENT_TABLE]] [["","Three Months Ended","","Percent","","Nine Months Ended","","Percent"],["","2026","","2025","","Change","","2026","","2025","","Change"],["Revenue","$","24,000","","","$","22,160","","","8","","","$","69,713","","","$","65,706","","","6"],["Operating income (loss):"],["Federal Express segment","1,572","","","1,294","","","21","","","4,261","","","3,299","","","29"],["FedEx Freight segment","8","","","261","","","(97)","","","458","","","1,012","","","(55)"],["Corporate, other, and eliminations","(232)","","","(263)","","","12","","","(807)","","","(887)","","","9"],["Consolidated operating income","$","1,348","","","$","1,292","","","4","","","$","3,912","","","$","3,424","","","14"],["Operating margin:"],["Federal Express segment","7.4","%","","6.7","%","","70","bp","","7.0","%","","5.9","%","","110","bp"],["FedEx Freight segment","0.4","%","","12.5","%","","(1,210)","bp","","7.2","%","","15.3","%","","(810)","bp"],["Consolidated operating margin","5.6","%","","5.8","%","","(20)","bp","","5.6","%","","5.2","%","","40","bp"],["Consolidated net income","$","1,056","","","$","909","","","16","","","$","2,836","","","$","2,444","","","16"],["Diluted earnings per share","$","4.41","","","$","3.76","","","17","","","$","11.91","","","$","9.99","","","19"]] [[/GREPCENT_TABLE]] [Excerpt truncated for page length; source filing is linked above.] ## Latest 10-K MD&A (excerpt) Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/1048911/000104891126000105/fdx-20260531.htm Complete FY 2026 MD&A: /company/FDX/mda/fy2026/ Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary. Confidence: high Filing date: 2026-07-20 Report date: 2026-05-31 ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION ORGANIZATION OF INFORMATION This Management’s Discussion and Analysis of Results of Operations and Financial Condition (“MD&A”) of FedEx Corporation (“FedEx”) is composed of three major sections: Results of Operations and Outlook, Financial Condition, and Critical Accounting Estimates. These sections include the following information: •Results of operations includes an overview of our consolidated 2026 results compared to 2025 results. This section also includes a discussion of key actions and events that impacted our results. The results discussed for the year ended May 31, 2026 include the operations of FedEx Freight for the full fiscal year. Discussion and analysis of 2024 results and year-over-year comparisons between 2025 results and 2024 results can be found in “Item 7. Management’s Discussion and Analysis of Results of Operations and Financial Condition” of our Annual Report on Form 10-K (“Annual Report”) for the year ended May 31, 2025. •The overview is followed by a discussion of historical operating results for our business segments during 2026 and 2025, as well as a financial summary and analysis for each of our transportation segments in place during 2026 and 2025. In light of our change in fiscal year end from May 31 to December 31, the discussion includes our outlook for the twelve months ending December 31 (“calendar year”). Except as otherwise specified, any reference to a year indicates our fiscal year ending May 31, 2026 or ended May 31 of the year referenced, and comparisons are to the corresponding period of the prior year. -40- •Our financial condition is reviewed through an analysis of key elements of our liquidity and capital resources, financial commitments, and liquidity outlook for calendar year 2026. •Critical accounting estimates discusses those financial statement elements that we believe are most important to understanding the material judgments and assumptions incorporated in our financial results. The discussion in MD&A should be read in conjunction with the other sections of this Annual Report, particularly “Item 1. Business,” “Item 1A. Risk Factors,” and “Item 8. Financial Statements and Supplementary Data.” DESCRIPTION OF BUSINESS SEGMENTS We provide a broad portfolio of transportation, e-commerce, and business services, offering integrated business solutions utilizing our flexible, efficient, and intelligent global network. During 2026 and 2025, our primary operating companies were Federal Express Corporation (“Federal Express”), the world’s largest express transportation company and a leading North American provider of small-package ground delivery services, and FedEx Freight, Inc. (“FedEx Freight”), a leading North American provider of less-than-truckload (“LTL”) freight transportation services. For those periods, Federal Express and FedEx Freight represented our major service lines and constituted our reportable segments. This MD&A is based on our segment reporting that was in effect during 2026 and 2025. On June 1, 2026, we completed the Spin-Off. Effective as of this date, we will no longer consolidate FedEx Freight and FedEx Freight is no longer a reportable segment. References to our transportation segments include, collectively, the Federal Express segment and the FedEx Freight segment. See “Reportable Segments” below and “Item 1. Business” for additional information. The key indicators necessary to understand our operating results include: •the overall customer demand for our various services based on macroeconomic factors and the global economy; •the volumes of transportation services provided through our networks, primarily measured by our average daily volume and shipment weight and size; •the mix of services purchased by our customers; •the prices we obtain for our services, primarily measured by yield (revenue per package or pound or revenue per shipment or hundredweight for LTL freight shipments); •our ability to manage our cost structure (capital expenditures and operating expenses) to match shifting volume levels; and •the timing and amount of fluctuations in fuel prices and our ability to recover incremental fuel costs through our fuel surcharges. Trends Affecting Our Business The following trends significantly affect the indicators discussed above, as well as our business and operating results. See the risk factors identified under Item 1A. Risk Factors” for more information. Additionally, see “Results of Operations and Outlook – Consolidated Results – Separation and Other Costs – Business Optimization Costs and – Outlook” and “Financial Condition – Liquidity Outlook” below for additional information on efforts we are taking to mitigate adverse trends. Macroeconomic Conditions While macroeconomic risks apply to most companies, we are particularly vulnerable. The transportation industry is highly cyclical and especially susceptible to trends in economic activity. Our primary business is to transport goods, so our business levels are directly tied to the purchase and production of goods and the rate of global trade growth. The decline in U.S. imports of consumer goods that started in late 2022, along with slowed global industrial production, has contributed to continued weakened business conditions for the transportation industry leading to lower shipment volumes. Additionally, recent changes in U.S. and international trade policy have further weakened business conditions for the transportation industry. Inflation and elevated interest rates are negatively affecting consumer and business spending, and we expect inflation and elevated interest rates to continue to negatively affect our results for the remainder of calendar year 2026. Global Trade Policies The United States government has taken certain actions that have negatively affected United States trade, including imposing tariffs on many goods imported into the United States. Additionally, many foreign governments have imposed, and others have threatened to impose, new, expanded, or retaliatory tariffs, sanctions, embargoes, and/or quotas or trade barriers on certain goods imported from the United States. These actions have contributed to weakness in the global economy that has adversely affected our results of operations. -41- On February 20, 2026 the U.S. Supreme Court issued a decision invalidating tariffs imposed under the International Emergency Economic Powers Act (“IEEPA”). On February 23, 2026, FedEx filed a lawsuit in the U.S. Court of International Trade against the U.S. Customs and Border Protection (“CBP”), the CBP commissioner, and the United States of America seeking a full refund of all IEEPA tariffs paid. On April 20, 2026, FedEx began filing refund claims through the CBP’s Consolidated Administration and Processing of Entries (“CAPE”) system. As of May 31, 2026, we have submitted claims totaling $3.3 billion and we have received cash refunds of approximately $800 million. FedEx recognizes amounts associated with these claims when cash is received or when realization is otherwise considered probable and estimable. We continue to submit additional refund claims, pursuant to the CBP process, and expect to receive additional refunds as these claims are processed by CBP. The ultimate amount and timing of refunds remain uncertain due to ongoing administrative processes and potential legal developments. To the extent customers have previously paid amounts associated with these tariffs, FedEx plans to remit corresponding refunds as soon as practicable. Accordingly, FedEx has recorded $749 million as of May 31, 2026 within current liabilities representing estimated customer refund obligations for cash refunds received. Certain amounts associated with these tariffs were not collected from customers and were previously written off as credit losses. Recoveries of such amounts are recognized in the period cash is received or when realization is reasonably assured which is generally when cash is received and are recorded as reductions of bad debt expense. Additionally, fourteen nationwide class action lawsuits seeking refunds of IEEPA tariffs from FedEx were filed in U.S. district courts in various states. Thirteen of those lawsuits were consolidated into a single case pending in Tennessee federal court. The remaining lawsuit is pending in the Court of International Trade. The financial impact of these events is uncertain, as it is unclear to what extent duties will be refunded by CBP, what processes will govern such refunds in upcoming CAPE phases, or if we can fully collect related accounts receivable. We are evaluating the impact of these developments on our business and financial statements. No adjustments have been recorded in the accompanying consolidated financial statements as we cannot reasonably estimate the financial impact; however, it is reasonably possible that it could be material. MD-11 Operational Impact In November 2025, the U.S. Federal Aviation Administration issued an emergency Airworthiness Directive to address a potentially unsafe condition on all Boeing MD-11 aircraft, prohibiting further flight until the aircraft are inspected and all corrective actions are performed. Consequently, we experienced operational disruptions during fiscal 2026 related to the grounding of our MD-11 aircraft fleet which had an adverse impact on our financial results. In May 2026, following FAA approval of Boeing developed inspection and return-to-service protocols for MD-11 aircraft, we began systematically returning our MD-11 fleet to active commercial service. We expect our MD-11 fleet to be fully returned to service by the end of calendar year 2026. Fuel We must purchase large quantities of fuel to operate our aircraft and vehicles, and the price and availability of fuel is beyond our control and can be highly volatile. In addition, our purchased transportation expense is affected by fuel costs. During 2026, higher fuel prices positively affected yields through increased fuel surcharges and negatively affected fuel expenses. To date, we have been mostly successful in mitigating over time the expense effect of higher fuel costs through our indexed fuel surcharges, as the amount of the surcharges is closely linked to the market prices for fuel. If we are unable to maintain or increase our fuel surcharges because of competitive pricing pressures or some other reason, fuel costs could materially and adversely affect our operating results. Geopolitical Conflicts Given the nature of our business and our global operations, political, economic, and other conditions in foreign countries and regions, including international taxes, government-to-government relations, the typically more volatile economies of emerging markets, and geopolitical risks such as the ongoing conflicts between Russia and Ukraine, the United States and Iran, and other hostilities in the Middle East, may materially and adversely affect our business and results of operations. RESULTS OF OPERATIONS AND OUTLOOK Many of our operating expenses are directly affected by revenue and volume levels, and we expect these operating expenses to fluctuate on a year-over-year basis consistent with changes in revenue and volumes. Therefore, the discussion of operating expenses focuses on the key drivers and trends affecting expenses other than those factors strictly related to changes in revenue and volumes. The line item “Other” includes costs associated with outside service contracts (such as information technology services, facilities services, security, temporary labor and security), insurance, professional fees, and credit losses. -42- CONSOLIDATED RESULTS The following table compares summary operating results (dollars in millions, except per share amounts) for the years ended May 31: [Excerpt truncated for page length; the complete text is on the linked full-MD&A page.] Read the full FY 2026 MD&A: /company/FDX/mda/fy2026/ All MD&A years: /company/FDX/mda/ ## MD&A history Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page. - [FY 2025 MD&A](/company/FDX/mda/fy2025/): filed 2025-07-21; accession 0001048911-25-000011 (https://www.sec.gov/Archives/edgar/data/1048911/000104891125000011/fdx-20250531.htm) - [FY 2024 MD&A](/company/FDX/mda/fy2024/): filed 2024-07-15; accession 0000950170-24-083577 (https://www.sec.gov/Archives/edgar/data/1048911/000095017024083577/fdx-20240531.htm) - [FY 2023 MD&A](/company/FDX/mda/fy2023/): filed 2023-07-17; accession 0000950170-23-033201 (https://www.sec.gov/Archives/edgar/data/1048911/000095017023033201/fdx-20230531.htm) - [FY 2022 MD&A](/company/FDX/mda/fy2022/): filed 2022-07-18; accession 0000950170-22-012762 (https://www.sec.gov/Archives/edgar/data/1048911/000095017022012762/fdx-20220531.htm) ## Macro cross-references Indicators mapped to this company's SIC classification (industry 4513 Air Courier Services) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim. - [GDPC1](/indicator/GDPC1/): Real Gross Domestic Product - [INDPRO](/indicator/INDPRO/): Industrial Production: Total Index - [TCU](/indicator/TCU/): Capacity Utilization: Total Index - [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity - [BOPGSTB](/indicator/BOPGSTB/): U.S. International Trade in Goods and Services: Balance Macro-to-micro threads including this sector: [Money & trade](/thread/money-trade/), [Trade & external](/thread/trade-external/). All macro indicators: /indicators/ ## For LLMs & downloads Markdown twin: /company/FDX.md · JSON record: /company/FDX.json · verified financials: /company/FDX/financials.json / /company/FDX/financials.csv · machine TOC for the whole site: /llms.txt