Investment Thesis
FedEx demonstrates stable operational profitability with 5.6% operating margins and solid free cash flow generation of $2.3B, but faces headwinds from minimal revenue growth (0.3% YoY) and declining EPS (-2.3% YoY). The company maintains moderate leverage (0.72x debt/equity) and adequate liquidity, though returns on equity and assets remain modest.
FDX Strengths
- Consistent free cash flow generation ($2.3B) provides financial flexibility
- Moderate leverage with 0.72x debt/equity ratio and adequate interest coverage of 3.4x
- Stable operating margins at 5.6% demonstrate operational efficiency in core business
- Substantial asset base ($89.2B) reflects market position in global logistics
FDX Risks
- Stagnant revenue growth of only 0.3% YoY indicates minimal market expansion or pricing power
- Declining diluted EPS (-2.3% YoY) despite flat net income suggests shareholder dilution or increased tax burden
- Weak return metrics (ROE 6.3%, ROA 2.0%) indicate suboptimal capital efficiency
- High capital intensity ($1.4B capex) relative to $2.3B free cash flow limits financial flexibility
- Low net margin of 3.9% leaves limited cushion for operational disruptions
Key Metrics to Watch
- Operating cash flow trend and working capital efficiency
- Revenue growth acceleration and pricing dynamics
- Capital expenditure requirements and free cash flow sustainability
- Debt levels and refinancing costs in changing interest rate environment
- Return on equity trajectory and capital allocation effectiveness
FDX Financial Metrics
FDX Profitability Ratios
FDX Balance Sheet & Liquidity
FDX 5-Year Financial Trend
5-Year Trend Summary: FEDEX CORP's revenue has shown modest growth of 7% over the 5-year period. The most recent EPS of $15.48 reflects profitable operations.
FDX Growth Metrics (YoY)
FDX Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q2 2026 | $22.0B | $741.0M | $3.03 |
| Q1 2026 | $21.6B | $794.0M | $3.21 |
| Q3 2025 | $21.7B | $879.0M | $3.51 |
| Q2 2025 | $22.0B | $741.0M | $3.03 |
| Q1 2025 | $21.6B | $794.0M | $3.21 |
| Q3 2024 | $21.7B | $771.0M | $3.05 |
| Q2 2024 | $22.2B | $788.0M | $3.07 |
| Q1 2024 | $21.7B | $875.0M | $3.33 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
FDX Capital Allocation
FDX SEC Filings
Access official SEC EDGAR filings for FEDEX CORP (CIK: 0001048911)