FedEx Corporation · NYSE:FDX
FedEx — Q3 FY26 Earnings Presentation
25 slides from FedEx's earnings presentation, Mar 19, 2026
Slide 1: Investor Relations Roadshow presentation
Investor Relations Roadshow presentation March 19, 2026 Forward-Looking Statements and Non-GAAP Financial Measures Certain statements in this press release may be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act, such as statements regarding ex
Slide 2: Unmatched global network
Unmatched global network Linking more than 99% of world’s GDP • Over 220 countries and territories, including every address in the U.S. • 708 aircraft and more than 200,000 motorized vehicles • More than 5,000 operating facilities; more than 650 airports served worldwide • Delivers nearly 18M shipme
Slide 3: Federal Express Global Air Network; Revised FY26 outlook
Federal Express Global Air Network Our 13 hubs connect 220+ countries and territories and more than 99% of the world’s GDP. ANC YEG DUB STN FRA YYC YWG LGG YVR CGN YOW CDG YMX YYC MXP TAO IND IST ICN NRT OAK EWR PEK KIX MEM PVG DEL CAN MTY MIA XMN GDL SDQ RUH DWC HKG SJU BQN BLR MDE BOG SIN UIO VCP
Slide 4: Illustrative operating income bridge; Capital allocation priorities
Illustrative operating income bridge based on the midpoint of 1 FY26 adjusted EPS outlook 1 Non-GAAP financial measure; see appendix for more information. 2 Base Expense Increase excludes costs related to incremental FY26 volume, variable incentive compensation, and direct trade-related expense. 7 3
Slide 5: FedEx Business Trends
FedEx Business Trends Meeting e-commerce demands • Year-round, seven-day-per-week U.S. residential delivery through our ground services* • Significantly later pick up times offered with FedEx Extra Hours Service • Widespread retail convenience network with Walgreens, Dollar General, and our own FedE
Slide 6: Pricing Strategy
Pricing Strategy Improving revenue quality • Focused on long-term profitable growth • Prioritizing capacity for highest-yielding customers • Shipping rates for express and ground services to increased by an average of 5.9% in January 2026 • FedEx Freight shipping rates also increased by an average o
Slide 7: FedEx Ground Revenue Market Share; FedEx Freight update
FedEx Ground Revenue Market Share Has Grown to More Than 31% $120 50% $110 $100 Revenue ($ Billions) 40% $90 Market Share $80 $70 30% $60 $50 20% $40 $30 10% $20 $10 $0 0% CY98CY99CY00CY01CY02CY03CY04CY05CY06CY07CY08CY09CY10CY11CY12CY13CY14CY15CY16CY17CY18CY19CY20CY21CY22CY23CY24CY25 FedEx Ground Re
Slide 8: FedEx Freight Competitive Advantages and Go-Forward Strategy
FedEx Freight Competitive Advantages • The only nationwide LTL that offers Priority and Economy services from one network • FedEx Freight has the fastest published transit times of any nationwide LTL company. • Focused on improving margins with better yields and capacity utilization • FedEx Freight
Slide 9: B2B Growth Strategy; Growing & Leading Industrial Network
B2B GROWTH STRATEGY Target verticals represent a combined total addressable market1 (TAM) >$130B HEALTHCARE AUTOMOTIVE DATA CENTERS AEROSPACE 17 1. FedEx estimate GROWING & LEADING INDUSTRIAL NETWORK Breadth and balance of portfolio create a powerful and differentiated network GLOBAL PORTFOLIO1 U.S.
Slide 10: Winning High-Value B2C; Dataworks Next
WINNING HIGH-VALUE B2C Growing profitable share in higher-value, longer-haul B2C B2C OPPORTUNITY FEDEX TARGET: Low-single digit COMPETITIVE ADVANTAGES Volume growth CAGR2 • 70% of ground service revenue from shipments traveling >300 miles • Advanced digital suite of solutions • Superior value propos
Slide 11: Network 2.0 and One FedEx savings
Network 2.0 PROGRESS EXPECTED BY END OF CY26 ~65% of eligible U.S. and Canada ADV optimized PROGRESS EXPECTED BY END OF 2027 >900 optimized stations across U.S. and Canada ENTERING THE SCALING PHASE: FROM >475 PROOF OF CONCEPT TO ENTERPRISE closed stations FOCUS SHIFTING TO LARGEST METROS AND SCALE
Slide 12: 2029 Financial Targets
NEW ERA FOCUSED ON THREE FINANCIAL PRINCIPLES Expand operating Lower capital Significantly and 1 margins and grow 2 intensity and 3 sustainably increase operating income improve ROIC free cash flow 23 2029 Financial Targets 12
Slide 13: Strong & Durable 2029 Financial Targets
STRONG & DURABLE 2029 FINANCIAL TARGETS ~$8B Operating income in 2029 ~14% adj. operating income CAGR1 ~8% Operating margin in 2029 ~200 bps of adj. margin expansion $25 GAAP earnings per share2 in 2029 ~$6B Adj. free cash flow in 2029 25 1. Based on FY26E-2029E CAGR. Represents midpoint of FedEx FY
Slide 14: U.S. Domestic and International Segments
U.S. DOMESTIC SEGMENT U.S. DOMESTIC REVENUE +4% CAGR $64B $56B Executing Network 2.0 and One FedEx initiatives… ~$2 billion in cumulative cost savings 1 FY26E 2029E Rigorously focus our top-line growth on expanding yields and continuing to win share in the B2B market, OPERATING INCOME which comes wi
Slide 15: High-Quality, Durable Revenue Growth; Lower Capital Intensity
HIGH-QUALITY, DURABLE REVENUE GROWTH Focus on B2B, SMBs, and high-value B2C revenue opportunities TOTAL CORE REVENUE SUSTAINABLE, PROFITABLE GROWTH +4% CAGR $6B of incremental yield-related revenue +4% through 2029 CAGR $6B of incremental volume-related revenue through 2029 +4% CAGR Additional $1B o
Slide 16: Higher ROIC; Adjusted Free Cash Flow Improvement
HIGHER ROIC PRIORITIZING • Ensuring that our business generates IMPROVED ROIC significant shareholder returns is a top priority +200 bps • Focused on leveraging the scale and scope of to drive unprecedented shareholder value in 11% years to come 9% • Expect to drive 200 bps of ROIC expansion, driven
Slide 17: Carbon neutral operations by 2040
Carbon neutral operations by 2040 Aircraft Vehicles Facilities Fuel conservation, fleet Route optimization, EV pickup and Renewable energy, energy modernization, and cost-effective delivery vehicles (PUDs), testing management, building efficiency sustainable aviation fuel (SAF) alternative fuels and
Slide 18: Consolidated operating margin; Earnings per share
Consolidated operating margin 8.0% 7.3% 7.1% 7.0% 7.0% 6.7% 6.3% 6.0% 5.9% 6.0% 5.4% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% FY22 FY23 FY24 FY25 GAAP Adjusted 35 Non-GAAP financial measure. See Appendix for more details. Earnings per share $25.00 $20.61 $20.00 $18.19 $17.21 $17.80 $16.81 $15.48 $14.96 $15.00
Slide 19: Capital expenditures; Adjusted Free Cash Flow
Capital expenditures (% of Revenues) 9.0% 8.5% 8.0% 7.0% 7.2% 7.0% 6.8% 5.9% 6.0% 5.0% 4.6% 4.0% 3.0% 2.0% 1.0% 0.0% FY20 FY21 FY22 FY23 FY24 FY25 37 Adjusted Free Cash Flow $5.0 $4.7 $4.5 $4.1 $4.0 $3.9 $3.7 $3.6 $3.5 $3.0 $ Billion $2.5 $2.0 $1.5 $1.0 $0.5 $0.3 $0.0 FY20 FY21 FY22 FY23 FY24 FY25 3
Slide 20: Capital Returns
Capital Returns $5.0 $4.5 $4.3 $4.0 $3.8 $3.5 $3.0 $3.0 $2.7 $ Billion $2.5 $2.0 $1.5 $1.0 $0.7 $0.7 $0.5 $0.0 FY20 FY21 FY22 FY23 FY24 FY25 39 Capital Returns calculated based on dividend payments and stock repurchases Appendix 20
Slide 21: Non-GAAP financial measures
Non-GAAP financial measures FY26 EPS and ETR forecasts Our fiscal 2026 diluted earnings per share (“EPS”) forecast is a non-GAAP financial measure because it excludes fiscal 2026 mark-to- market (“MTM”) retirement plans accounting adjustments, the planned spin-off of FedEx Freight in fiscal 2026, es
Slide 22: GAAP to non-GAAP reconciliations
GAAP to non-GAAP reconciliations FedEx Corporation Q3 FY26 Q3 FY25 Diluted Diluted Operating Operating Income Net Earnings Operating Operating Income Net Earnings Dollars in millions, except EPS Income Margin Taxes1 Income2 Per Share Income Margin Taxes1 Income2 Per Share GAAP measure $ 1,348 5.6 %
Slide 23: FY26 Outlook Non-GAAP Reconciliation
FY26 OUTLOOK NON-GAAP RECONCILIATION FY26 outlook midpoint1 FY26 outlook - consolidated Dollars in millions Revenue Operating income Operating margin GAAP measure (including FedEx Freight) $93,500 $5,272 5.6% Removal of FedEx Freight segment, net of related eliminations (8,500) (740) Consolidated, e
Slide 24: GAAP to non-GAAP reconciliations
GAAP to non-GAAP reconciliations FY20 - FY25 Free Cash Flow and Adjusted Free Cash Flow Dollars in millions FY20 FY21 FY22 FY23 FY24 FY25 Cash Provided by Operating Activities (GAAP) $ 5,097 $ 10,135 $ 9,832 $ 8,848 $ 8,312 $ 7,036 Capital expenditures (5,868) (5,884) (6,763) (6,174) (5,176) (4,055)
Slide 25: GAAP to non-GAAP reconciliations; Footnotes
GAAP to non-GAAP reconciliations FY22 Reconciliation for FedEx Corporation FY22 Diluted Operating Operating Income Earnings Dollars in millions, except EPS Income Margin Taxes1 Net Income2 Per Share GAAP measure $ 6,245 6.7% $ 1,070 $ 3,826 $ 14.33 MTM retirement plans — — 379 1,199 4.49 accounting