📊 FDX Key Takeaways
Is Fedex Corp. (FDX) a Good Investment?
FedEx demonstrates solid financial health with 7.7% revenue growth and strong free cash flow generation of $5.1B, supported by manageable leverage (Debt/Equity 0.74x) and adequate liquidity. However, net income growth of only 0.2% despite robust revenue expansion signals margin compression, warranting a cautious stance until profitability trends stabilize.
FedEx demonstrates solid revenue growth, strong cash generation, and manageable leverage, supported by $5.12 billion in free cash flow and 7.3x interest coverage. However, nearly flat net income despite 7.7% revenue growth, modest margins, and EPS growth materially exceeding earnings growth indicate limited operating leverage and potentially buyback-driven per-share improvement.
Fedex Corp. Key Strengths (FDX)
- Revenue growth of 7.7% YoY shows solid top-line momentum in the competitive courier services sector
- Robust free cash flow of $5.1B (5.4% FCF margin) provides significant flexibility for reinvestment and debt service
- Balanced capital structure with Debt/Equity of 0.74x and strong interest coverage of 7.3x indicating financial stability
- Operating cash flow of $8.9B demonstrates consistent, reliable cash generation from core operations
- Revenue grew 7.7% year over year to $94.72 billion
- Generated $8.93 billion of operating cash flow and $5.12 billion of free cash flow
- Adequate liquidity and manageable leverage with a 1.48x current ratio and 0.74x debt-to-equity ratio
FDX Stock Risks: Fedex Corp. Investment Risks
- Significant earnings growth deceleration: net income up only 0.2% despite 7.7% revenue growth indicates troubling margin compression
- Low net profit margin of 4.7% provides minimal buffer against cost inflation and competitive pricing pressures
- Capital-intensive model requiring $3.8B annual capex ($3.8B) reduces free cash flow conversion efficiency
- Absolute debt level of $23.5B creates ongoing refinancing risk and interest rate sensitivity exposure
- Net income increased only 0.2% despite strong revenue growth, signaling cost pressure
- Operating margin of 5.8% and net margin of 4.7% provide limited protection against downturns
- Long-term debt of $23.45 billion remains substantial and could constrain flexibility
Key Metrics to Watch
- Operating margin and net margin trends in next quarters to confirm if compression stabilizes or reverses
- Free cash flow sustainability relative to capital expenditure requirements and debt obligations
- Cost structure analysis to identify whether margin compression stems from operational inefficiency or competitive pricing
- Operating margin and net income growth
- Free cash flow after capital expenditures
Fedex Corp. (FDX) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Fedex Corp. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
FDX Profit Margin, ROE & Profitability Analysis
FDX vs Transportation Sector: How Fedex Corp. Compares
How Fedex Corp. compares to Transportation sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Fedex Corp. Stock Overvalued? FDX Valuation Analysis 2026
Based on fundamental analysis, Fedex Corp. has mixed fundamental signals relative to the Transportation sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Fedex Corp. Balance Sheet: FDX Debt, Cash & Liquidity
FDX Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Fedex Corp.'s revenue has shown modest growth of 1% over the 5-year period. The most recent EPS of $17.21 reflects profitable operations.
FDX Revenue Growth, EPS Growth & YoY Performance
FDX Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2026 | $22.2B | $909.0M | $3.76 |
| 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 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Fedex Corp. Dividends, Buybacks & Capital Allocation
FDX SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Fedex Corp. (CIK: 0001048911)
📋 Recent SEC Filings
❓ Frequently Asked Questions about FDX
What is the AI rating for FDX?
Fedex Corp. (FDX) has a Combined AI Grade of B from Claude (B) and ChatGPT (B) with 79% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are FDX's key strengths?
Claude: Revenue growth of 7.7% YoY shows solid top-line momentum in the competitive courier services sector. Robust free cash flow of $5.1B (5.4% FCF margin) provides significant flexibility for reinvestment and debt service. ChatGPT: Revenue grew 7.7% year over year to $94.72 billion. Generated $8.93 billion of operating cash flow and $5.12 billion of free cash flow.
What are the risks of investing in FDX?
Claude: Significant earnings growth deceleration: net income up only 0.2% despite 7.7% revenue growth indicates troubling margin compression. Low net profit margin of 4.7% provides minimal buffer against cost inflation and competitive pricing pressures. ChatGPT: Net income increased only 0.2% despite strong revenue growth, signaling cost pressure. Operating margin of 5.8% and net margin of 4.7% provide limited protection against downturns.
What is FDX's revenue and growth?
Fedex Corp. reported revenue of $94.7B.
Does FDX pay dividends?
Fedex Corp. pays dividends, with $1,374.0M distributed to shareholders in the trailing twelve months.
Where can I find FDX SEC filings?
Official SEC filings for Fedex Corp. (CIK: 0001048911) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is FDX's EPS?
Fedex Corp. has a diluted EPS of $18.55.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is FDX's fundamental grade?
Based on our AI fundamental analysis in August 2026, Fedex Corp. has a B grade with 79% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is FDX stock overvalued or undervalued?
Valuation metrics for FDX: ROE of 14.0% (sector avg: 18%), net margin of 4.7% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
What is FDX's AI grade for 2026?
Our dual AI analysis gives Fedex Corp. a combined B grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is FDX's free cash flow?
Fedex Corp.'s operating cash flow is $8.9B, with capital expenditures of $3.8B. FCF margin is 5.4%.
How does FDX compare to other Transportation stocks?
Vs Transportation sector averages: Net margin 4.7% (avg: 10%), ROE 14.0% (avg: 18%), current ratio 1.48 (avg: 1).