FedEx Corporation (FDX) Q2 2023 Financial Results Summary
QuoteReporter
FedEx Corp. (FDX) Q2 2026 Financial Results Summary
FedEx Corp. (NYSE: FDX) released its financial results for the second quarter ended November 30, 2025, on December 18, 2025. The results show strong growth in multiple segments year-over-year.
Key Financial Highlights
- Revenue:
-
Q2 2026: $23.5 billion (increased by 6.8% from Q2 2025’s $22.0 billion)
-
Operating Income:
-
Q2 2026: $1.38 billion, vs. Q2 2025: $1.05 billion (31% increase)
-
Operating Margin:
-
Q2 2026: 5.9% (up from 4.8% in Q2 2025)
-
Net Income:
-
Q2 2026: $0.96 billion (increased by 29% from Q2 2025’s $0.74 billion)
-
Diluted Earnings Per Share (EPS):
- Q2 2026: $4.04 (up 33% from Q2 2025’s $3.03)
Adjusted Financial Metrics
This year’s financial results have been adjusted for specific costs related to the FedEx Freight spin-off and other optimization efforts:
- Adjusted Operating Income:
-
Q2 2026: $1.61 billion, vs. Q2 2025: $1.38 billion (a 16% increase)
-
Adjusted Operating Margin:
-
Q2 2026: 6.9% (was 6.3% in Q2 2025)
-
Adjusted Diluted EPS:
- Q2 2026: $4.82, vs. Q2 2025: $4.05
Segment Performance
- FedEx Express revenue increased to $20.4 billion (up 8% from $18.8 billion).
-
Operating Income rose from $1.05 billion (Q2 2025) to $1.55 billion in Q2 2026.
-
FedEx Freight revenue fell 2% to $2.14 billion from $2.18 billion, with operating income dropping significantly by 71% to $90 million.
Share Repurchase and Dividends
- FedEx repurchased approximately 1.2 million shares for $276 million in the open market during the quarter.
- Dividends Paid: A total of $687 million was paid out.
Outlook for Fiscal 2026
FedEx has revised its full-year fiscal revenue and EPS guidance:
-
Revenue Growth: Now projected to be 5% to 6%, higher than the previous 4% to 6% forecast.
-
Diluted EPS Guidance:
- $14.80 to $16.00 before adjustments, improved from an earlier range of $14.20 to $16.00.
-
After spin-off and optimization costs, the range is now $17.80 to $19.00, slightly reduced from $17.20 to $19.00.
-
Pension Contributions: Expected to be around $275 million, down from a previous estimate of up to $400 million.
Costs and Adjustments
The quarter included significant costs due to the planned spin-off of FedEx Freight, which totaled $152 million. Additionally, the ongoing business optimization initiatives resulted in adjusted financial metrics, facilitating easier comparison to core operations.
Corporate Strategy
FedEx is continuing its strategy toward network transformation and will spin off FedEx Freight on June 1, 2026. This strategic move aims to create a standalone entity, allowing each unit to focus on its strengths and market positioning.
In conclusion, FedEx’s second-quarter results show substantial growth compared to the previous year, driven by higher package volume and improved operating efficiency. The company is on track to achieve its revised projections for fiscal 2026 as it prepares for significant structural changes with the upcoming spin-off.
| Fiscal 2026 (GAAP) | Fiscal 2026 (non-GAAP) | Fiscal 2025 (GAAP) | Fiscal 2025 (non-GAAP) | |
|---|---|---|---|---|
| Revenue | $23,500 | $23,500 | $22,000 | $22,000 |
| Operating income | $1,378 | $1,609 | $1,052 | $1,378 |
| Operating margin | 5.9% | 6.9% | 4.8% | 6.3% |
| Net income | $956 | $1,142 | $741 | $990 |
| Diluted EPS | $4.04 | $4.82 | $3.03 | $4.05 |
Note: tables may not sum to totals due to rounding.
| November 30, 2025 | May 31, 2025 | |
|---|---|---|
| ASSETS | ||
| Current Assets | ||
| Cash and cash equivalents | $6,570 | $5,502 |
| Receivables, less allowances | $12,159 | $11,368 |
| Spare parts, supplies, and fuel, less allowances | $631 | $602 |
| Prepaid expenses and other | $1,293 | $914 |
| Total current assets | $20,653 | $18,386 |
| Property and Equipment, at Cost | $88,864 | $87,622 |
| Less accumulated depreciation and amortization | $47,542 | $45,980 |
| Net property and equipment | $41,322 | $41,642 |
| Other Long-Term Assets | ||
| Operating lease right-of-use assets, net | $16,184 | $16,453 |
| Goodwill | $6,626 | $6,603 |
| Other assets | $4,396 | $4,543 |
| Total other long-term assets | $27,206 | $27,599 |
| $89,181 | $87,627 | |
| LIABILITIES AND COMMON STOCKHOLDERS’ INVESTMENT | ||
| Current Liabilities | ||
| Current portion of long-term debt | $901 | $1,428 |
| Accrued salaries and employee benefits | $2,722 | $2,731 |
| Accounts payable | $4,664 | $3,692 |
| Operating lease liabilities | $2,621 | $2,565 |
| Accrued expenses | $5,306 | $4,995 |
| Total current liabilities | $16,214 | $15,411 |
| Long-Term Debt, Less Current Portion | $20,294 | $19,151 |
| Other Long-Term Liabilities | ||
| Deferred income taxes | $3,895 | $4,205 |
| Pension, postretirement healthcare, and other benefit obligations | $1,669 | $1,698 |
| Self-insurance accruals | $4,229 | $4,033 |
| Operating lease liabilities | $13,950 | $14,272 |
| Other liabilities | $790 | $783 |
| Total other long-term liabilities | $24,533 | $24,991 |
| Commitments and Contingencies | ||
| Common Stockholders’ Investment | ||
| Common stock, $0.10 par value, 800 million shares authorized | $32 | $32 |
| Additional paid-in capital | $4,366 | $4,290 |
| Retained earnings | $42,154 | $41,402 |
| Accumulated other comprehensive loss | -$1,414 | -$1,362 |
| Treasury stock, at cost | -$16,998 | -$16,288 |
| Total common stockholders’ investment | $28,140 | $28,074 |
| $89,181 | $87,627 |