Slide 1: FedEx Corporation Fiscal third quarter 2026 earnings
FedEx Corporation Fiscal third quarter 2026 earnings March 19, 2026 Jeni Hollander VP of Investor Relations
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 consideredforward-lookingstatements within the meaning of the Private Securities Litigation Reform Act, such as statements regarding expected cost savings, the optimization of our network throu
Slide 3: Key messages; Q3 FY26 results overview
Key messages • Team FedEx delivered its most profitable Peak and strong Q3 results • Q3 performance demonstrates the power and resilience of FedEx’s global industrial network • Executing on key strategic priorities: growth in high-margin verticals, transforming the network, building on data and tech
Slide 4: Growing in high-margin verticals; Transforming our industrial network
Growing in high-margin verticals Similar to Q2, nearly half of revenue growth was driven by B2B services HEALTHCARE AUTOMOTIVE DATA CENTERS AEROSPACE 7 Transforming our industrial network Tangible progress with one integrated, intelligent network Commentary: • By the end of March, ~35% of eligible v
Slide 5: Driving transformation in Europe; Data and technology at the foundation
Driving transformation in Europe Achieved 11th consecutive quarter of international revenue share gains Commentary: • Announced plans to transform our ground operations in France to improve the experience for employees, contractors, and customers • France strategy will optimize the hub-and- spoke ne
Slide 6: Transportation segment revenue performance
1 11 1 Transportation segment revenue performance Federal Express 10% FedEx Freight $19.2B $21.2B (5%) $2.1B $2.0B Q3 FY25 Q3 FY26 Q3 FY25 Q3 FY26 • FEC revenue growth driven by 10% U.S. domestic • FedEx Freight revenue pressured by lower package revenue growth shipments • International strength dri
Slide 7: Average daily volume trends by service; Transportation segment yield performance
Average daily volume (ADV) trends by service Q2 FY26 average daily volume / shipments Q3 FY26 average daily volume / shipments Federal Express U.S. Priority and Deferred Package YoY Federal Express International Export Package YoY Sep Oct Nov Dec Jan Feb Sep Oct Nov Dec Jan Feb 11% 7% 8% 7% 2% 7% 2%
Slide 8: Strategic commercial priorities; Revenue outlook
Strategic commercial priorities Driving disciplined growth in key services High-value B2B • Sales pipeline continues to gain momentum in key verticals • Further deepening expertise in healthcare logistics and pharmaceuticals by enhancing quality governance Specialized B2C • Recently launched FedEx R
Slide 9: Third quarter fiscal 2026 financial results
17 17 Third quarter fiscal 2026 financial results Delivered improved profitability through disciplined revenue strategies and cost management $24.0B $1.62B $5.25 Consolidated Adj. Operating Adj. Earnings Revenue Income* Per Share* 8% YoY 7% YoY 16% YoY $1.0B $776M YTD Dividends YTD Share Paid Repurc
Slide 10: Transportation segment adjusted operating income performance; Revised FY26 outlook
Transportation segment adjusted operating income* performance Federal Express 18% FedEx Freight (49%) $1,676M $1,424M $261M $134M Q3 FY25* Q3 FY26* Q3 FY25 Q3 FY26* • FEC results driven by base yield improvement, cost • FedEx Freight results declined due to increased reduction priorities, and increa
Slide 11: Illustrative operating income bridge; Capital allocation priorities
Illustrative operating income bridge based on the midpoint of 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. 21 3
Slide 12: FedEx Freight update; Q&A
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 13: Appendix: Non-GAAP financial measures
Appendix 25 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, estimated costs related to business optimiza
Slide 14: 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 15: GAAP to non-GAAP reconciliations
GAAP to non-GAAP reconciliations FedEx Corporation Full Year FY25 Diluted Dollars in millions, except EPS Operating Operating Income Net Income2 Earnings Income Margin Taxes1 Per Share GAAP measure $ 5,217 5.9 % $ 1,349 $ 4,092 $ 16.81 MTM retirement plans accounting adjustment6 — — (125) (390) (1.6
Slide 16: 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. 3 - These expenses were recognized at FedEx Freight, Corporate, other,