FedEx Corporation · NYSE:FDX
FedEx — Non-Deal Roadshow (March 2026)
50 slides from FedEx's roadshow presentation, Mar 19, 2026
Slide 1: Investor Relations Roadshow presentation
Investor Relations Roadshow presentation March 19, 2026
Slide 2: Forward-Looking Statements and Non-GAAP Financial Measures
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 expected cost savings, the optimization of our network thr
Slide 3: 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 4: Broad portfolio of services
UH Broad portfolio of services FY25 Revenues of $87.9 billion 86% Federal Express Gorporation express 1 0% services FedEx Freight 4% Corp. & Other Federal Express and FedEx Freight show segment revenue. $3 7B Other and eliminations includes revenue from FedEx 0 Dataworks, FedEx Office and FedEx Logi
Slide 5: Federal Express Global Air Network
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 6: Revised FY26 outlook
Revised FY26 outlook Raising outlook based on steady momentum at FEC Additional guidance: • Revised outlook does not assume any share Dec 2025 Mar 2026 repurchases in Q4; expect an EPS headwind from the impact from share dilution and FedEx Revenue 5%-6% 6.0%-6.5% Freight’s recent debt issuance resul
Slide 7: Illustrative operating income bridge based on FY26 adjusted EPS outlook
Illustrative operating income bridge based on the midpoint of FY26 adjusted EPS outlook 1 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 8: Capital allocation priorities
Capital allocation priorities Remain committed to prudent capital allocation and maximizing stockholder returns Capital Expenditure $6.8B $6.2B $5.2B $4.1B ≤ $4.1B 7.2% of 6.8% of 5.9% of 4.6% of revenue revenue revenue revenue FY22 FY23 FY24 FY25 FY26E Commentary • Anticipate FY26 CapEx of ≤ $4.1B,
Slide 9: 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 10: 92% of people in the U.S. are within five miles of a FedEx hold location
92% of people in the U.S. are within five miles of a FedEx hold location • Customers want to drop off or pick up at places convenient to their everyday lives — the FedEx retail convenience network offers nearly 50,000 U.S. locations • Now U.S. consumers can pick up their packages at more than 18,000
Slide 11: 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 12: Strong portfolio of residential package services
Strong portfolio of residential package services Express Home Delivery Ground Economy • 1–3 days transit time • 1–5 days transit time* • 2–7 days transit time* • Time-definite • Day-definite • No declared value • Money Back Guarantee • Declared value up to $50K • Lighter-weight • Declared value up t
Slide 13: FedEx Ground Revenue Market Share Has Grown to More Than 31%
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 14: FedEx Freight update
FedEx Freight update FedEx Freight well-positioned to create meaningful value as independent, industry-leading LTL company • Planned spin-off of FedEx Freight is on track for June 1, 2026 • Leadership team fully in place • Hiring of dedicated salesforce substantially onboarded • Successfully complet
Slide 15: FedEx Freight Competitive Advantages
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 16: Go-Forward Strategy
Go-Forward Strategy
Slide 17: B2B Growth Strategy
B2B GROWTH STRATEGY Target verticals represent a combined total addressable market1 (TAM) >$130B HEALTHCARE AUTOMOTIVE DATA CENTERS AEROSPACE 17 1. FedEx estimate
Slide 18: Growing & Leading Industrial Network
GROWING & LEADING INDUSTRIAL NETWORK Breadth and balance of portfolio create a powerful and differentiated network GLOBAL PORTFOLIO1 U.S. DOMESTIC Intelligent, integrated network powering U.S. commerce 30% 45% B2B revenue1 INTERNATIONAL REVENUE 70% INTERNATIONAL U.S. DOMESTIC Leading network with gl
Slide 19: Winning High-Value B2C
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 20: Dataworks Next: From Insights to Orchestration
DATAWORKS NEXT: FROM INSIGHTS TO ORCHESTRATION THREE LAYERS OF VALUE CREATION DATA INTELLIGENCE & INSIGHTS Embed predictive signals and benchmarks into customer workflows, as we are doing with ServiceNow and Dun & Bradstreet partnerships PRODUCTIZED CAPABILITIES Externalize proven internal tools (pl
Slide 21: Network 2.0: Entering the scaling phase
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 PROOF OF CONCEPT TO ENTERPRISE >475 closed stations >30% FOCUS SHIFTING TO LARGEST METROS AND S
Slide 22: Ramping Network 2.0 and One FedEx savings by end of 2027
RAMPING NETWORK 2.0 AND ONE FEDEX SAVINGS BY END OF 2027 SAVINGS ON TRACK PRIMARY STRUCTURAL COST LEVERS ~$1B Savings expected by the end of CY26 $2B PICK UP AND REDUCED ONE FEDEX Savings expected by the end of 2027 DELIVERY FOOTPRINT SAVINGS 22
Slide 23: New era focused on three financial principles
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
Slide 24: 2029 Financial Targets
2029 Financial Targets
Slide 25: 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 26: Prudent Revenue Assumptions
PRUDENT REVENUE ASSUMPTIONS TOTAL REVENUES YIELD/VOLUME/OTHER Contribution to $13B revenue growth through 2029 +4% CAGR $98B FEC yield $6B $6B $85B FEC volume Corporate & other $1B FY26E 2029E 26 1. Represents midpoint of FedEx FY26 guidance range, issued in December 2025; excludes FedEx Freight
Slide 27: U.S. Domestic Segment
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 28: International Segment
INTERNATIONAL SEGMENT INTERNATIONAL REVENUE +4% CAGR Leveraging our improved service, top-line performance and lower cost structure in Europe $25B $29B to support improved incremental margins 1 FY26E 2029E Continued growth in the premium cross-border and intercontinental segments of the European mar
Slide 29: High-Quality, Durable Revenue Growth
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 30: Lower Capital Intensity
LOWER CAPITAL INTENSITY COMMITTED TO FURTHER REDUCING CAPITAL INTENSITY1 • Committed to bringing annual aircraft CapEx to $1B CapEx-to-revenue ratio or below this fiscal year 8.6% • Expect aircraft CapEx to remain at or below $1B through 2029, supporting FCF expansion 7.0% • Plan assumes 90% of capi
Slide 31: Higher ROIC
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 32: Adjusted Free Cash Flow Improvement
ADJUSTED FREE CASH FLOW IMPROVEMENT DRIVING STRONG GROWTH IN ADJ. FCF • Expect to generate a cumulative $16B of adj. free cash from FY26 through 2029 ~$6B • Expect >100% adj. FCF conversion in 2029 vs. ~90% in FY25 $3.8B • Strong adj. FCF growth reflects shift from era of network expansion to new er
Slide 33: 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 34: Corporate social responsibility
Corporate social responsibility Awards & recognition World’s Most Admired Companies 2026 Top 100 Global Brands 2025 FORTUNE Brand Finance • Our 26th consecutive year we’ve been ranked among the top 20 in the FORTUNE One of “Fortune AIQ 50” companies 2025 Most Admired Companies List that lead the way
Slide 35: Consolidated operating margin
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.
Slide 36: Earnings per share
Earnings per share $25.00 $20.61 $20.00 $18.19 $17.21 $17.80 $16.81 $15.48 $14.96 $15.00 $14.33 $10.00 $5.00 $0.00 FY22 FY23 FY24 FY25 GAAP Adjusted 36 Non-GAAP financial measure. See Appendix for more details..
Slide 37: Capital expenditures
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
Slide 38: Adjusted Free Cash Flow
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 38 Non-GAAP financial measure. See Appendix for more details.
Slide 39: 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
Slide 40: Appendix
Appendix
Slide 41: 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 42: GAAP to non-GAAP reconciliations
GAAP to non-GAAP reconciliations FedEx Corporation Full Year FY25 Full Year FY24 Diluted Diluted Operating Operating Income Earnings Operating Operating Income Earnings Dollars in millions, except EPS Income Margin Taxes1 Net Income2 Per Share Income Margin Taxes1 Net Income2 Per Share GAAP measure
Slide 43: 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 44: GAAP to non-GAAP reconciliations
GAAP to non-GAAP reconciliations Federal Express Segment Q3 FY26 Q3 FY25 Operating Operating Operating Operating Dollars in millions Income Margin Income Margin GAAP measure $ 1,572 7.4 % $ 1,294 6.7 % FedEx Freight spin-off costs 32 0.2 % — —% Business optimization costs 67 0.3 % 92 0.5 % Fiscal ye
Slide 45: 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 46: GAAP to non-GAAP reconciliations
GAAP to non-GAAP reconciliations FY26 Diluted Earnings Per Share Forecast FY26 Outlook Diluted Earnings Dollars in millions, except EPS Adjustments per Share Diluted earnings per share before MTM retirement plans accounting adjustments (non-GAAP)8 $16.05 to $16.85 FedEx Freight spin-off costs 700 Bu
Slide 47: 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 48: GAAP to non-GAAP reconciliations
GAAP to non-GAAP reconciliations FY23 Reconciliation for FedEx Corporation FY23 Diluted Operating Operating Income Earnings Dollars in millions, except EPS Income Margin Taxes1 Net Income2 Per Share GAAP measure $ 4,912 5.4% $ 1,391 $ 3,972 $ 15.48 MTM retirement plans — — (157) (493) (1.92) account
Slide 49: GAAP to non-GAAP reconciliations
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
Slide 50: Footnotes for non-GAAP reconciliation slides
Footnotes for non-GAAP reconciliation slides 1 - Income taxes are based on the company’s approximate statutory tax rates applicable to each transaction. 2 - Effect of “total other (expense) income” on net income amount not shown. The MTM retirement plans accounting adjustment reflects the year-end a