FedEx Reports 8% Revenue Growth to $94.72 Billion for Fiscal Year 2026

FedEx Corporation reported consolidated revenue of $94.72 billion for the fiscal year ended May 31, 2026, an increase of 8% compared to $87.93 billion in the prior fiscal year. The company's operating income rose by 5% to $5.46 billion in fiscal year 2026, up from $5.22 billion in fiscal year 2025. Net income for the period was $4.43 billion, an 8% increase from $4.09 billion in the previous year, resulting in diluted earnings per share of $18.55, up 10% from $16.81 in fiscal year 2025. These financial results reflect improved base yields for package services, increased U.S. domestic package volumes, and higher fuel surcharges, alongside ongoing structural cost reductions from business optimization initiatives.

The company's financial performance was influenced by several strategic and operational developments. In fiscal year 2026, FedEx completed the spin-off of its less-than-truckload freight transportation services business, FedEx Freight, Inc., on June 1, 2026. This separation resulted in FedEx Freight no longer being a reportable segment. Following the spin-off, FedEx realigned its reporting structure into two new segments: Express U.S. Domestic and Express International. Additionally, the company continued its network transformation efforts, including the ongoing implementation of Network 2.0 in the U.S. and Canada and the redesign of its international air network through the Tricolor initiative.

Operationally, FedEx experienced a 3% increase in total average daily package volume, reaching 17.56 million in fiscal year 2026, compared to 17.00 million in fiscal year 2025. The Federal Express segment saw a 9% increase in revenue, driven by improved package base yields and higher U.S. domestic package volumes, partially offset by the expiration of a contract with the U.S. Postal Service. Conversely, FedEx Freight segment revenue decreased by 1% due to lower volumes, despite higher fuel surcharges and yield improvements. The company's employee headcount as of May 31, 2026, consisted of approximately 300,000 permanent full-time and 230,000 permanent part-time employees.

Looking ahead, FedEx anticipates continued revenue and operating profit growth for the remainder of calendar year 2026, driven by year-over-year increases in its U.S. Domestic and International segments. The company expects yield and volume improvements to more than offset rising expenses, including higher wage and purchased transportation rates, and costs associated with a newly ratified pilot collective bargaining agreement. FedEx is also focused on executing its business optimization initiatives, aiming for $1.0 billion in structural cost reductions by the end of calendar year 2026. Capital expenditures for calendar year 2026 are projected to be approximately $3.9 billion, an increase from calendar year 2025, primarily due to accelerated investments in Network 2.0 and facility modernization.