Free cash flow margins have improved significantly from 1.1% in 2024Q3 to 7.2% in 2026Q4, consistently supported by an OCF/NI ratio that peaked at 2.21 in 2025Q3.
| Metric | TTM | May'26 | May'25 | May'24 | May'23 | May'22 | May'21 | May'20 | May'19 | May'18 | May'17 | May'16 | May'15 | May'14 | May'13 | May'12 | May'11 | May'10 | May'09 | May'08 | May'07 | May'06 | May'05 | May'04 | May'03 | May'02 | May'01 | May'00 | May'99 | May'98 | May'97 |
|---|
| Cash from Operations | 8.18B | 8.93B | 7.04B | 8.31B | 8.81B | 9.83B | 10.13B | 5.1B | 5.61B | 4.67B | 4.93B | 5.71B | 5.37B | 4.26B | 4.69B | 4.83B | 4.04B | 3.14B | 2.75B | 3.48B | 3.56B | 3.68B | 3.12B | 3.02B | 1.87B | 2.23B | 2.04B | 1.63B | 1.77B | 1.71B | 1.01B |
| Operating CF Margin % | - | 9.42% | 8% | 9.48% | 9.78% | 10.51% | 12.1% | 7.36% | 8.05% | 7.14% | 8.17% | 11.33% | 11.31% | 9.36% | 10.59% | 11.33% | 10.28% | 9.03% | 7.76% | 9.18% | 10.12% | 11.38% | 10.62% | 12.22% | 8.32% | 10.81% | 10.41% | 8.9% | 10.56% | 10.75% | 8.75% |
| Operating CF Growth % | 85.01% | 26.85% | -15.35% | -5.71% | -10.34% | -2.99% | 98.84% | -9.19% | 20.09% | -5.19% | -13.63% | 6.37% | 25.84% | -9.04% | -3.04% | 19.65% | 28.78% | 13.98% | -20.98% | -2.22% | -3.07% | 17.93% | 3.21% | 61.41% | -16.02% | 9.01% | 25.75% | -8.29% | 3.85% | 69.37% | 6.43% |
| Net Income | 4.48B | 4.43B | 4.09B | 4.33B | 3.97B | 3.83B | 5.23B | 1.29B | 540M | 4.57B | 3B | 1.82B | 1.05B | 2.1B | 1.56B | 2.03B | 1.45B | 1.18B | 98M | 1.13B | 2.02B | 1.81B | 1.45B | 838M | 830M | 710M | 584.37M | 688.34M | 631.33M | 498.15M | 361.2M |
| Depreciation & Amortization | 4.33B | 4.37B | 4.26B | 4.29B | 4.18B | 3.97B | 3.79B | 3.62B | 3.35B | 3.1B | 3B | 2.63B | 2.61B | 2.59B | 2.39B | 2.11B | 1.97B | 1.96B | 1.98B | 1.95B | 1.74B | 1.55B | 1.46B | 1.38B | 1.35B | 1.36B | 1.28B | 1.15B | 1.04B | 963.73M | -777.4M |
| Stock-Based Compensation | 174M | 0 | 154M | 163M | 182M | 190M | 200M | 168M | 174M | 167M | 154M | 144M | 133M | 117M | 109M | 105M | 98M | 101M | 99M | 101M | 103M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | -182M | 2.93B | 2.89B | 1.06B | -233M | -231M | 909M | 31M | -572M | 581M | 521M | 1.13B | 669M | 331M | 299M | 124M | 37M | 187M | 63M | -8M | 329M | 14M | -16.02M | -7.36M | -34M | 45.5M | 45.7M |
| Other Non-Cash Items | 3.27B | 3.65B | 3.24B | 2.96B | 3.84B | 2.03B | -104M | 3.06B | 4.27B | 531M | 77M | 1.62B | 2.58B | 130M | 646M | 294M | 181M | 142M | 1.28B | 1.02B | 106M | 262M | 241M | 660M | 215M | -32M | 209.82M | -38.38M | -19.39M | 68.65M | 1.54B |
| Working Capital Changes | -4.08B | -3.53B | -4.71B | -3.43B | -3.17B | -3.12B | -1.87B | -4.09B | -2.49B | -3.46B | -2.2B | -537M | -437M | -1.25B | -535M | -835M | -332M | -578M | -1B | -828M | -441M | -127M | -98M | 155M | -854M | 56M | -10.14M | -226.25M | 105.76M | 97.23M | -187.3M |
| Change in Receivables | -2.18B | 0 | -1.78B | -270M | 782M | -310M | -1.39B | -1.33B | -873M | -1.05B | -556M | -199M | -392M | -516M | -451M | -254M | -400M | -906M | 762M | -447M | -323M | -319M | -235M | -307M | -197M | -88M | 61.7M | -404.51M | -294.1M | -254.3M | -334.4M |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 1.39B | 1.33B | 873M | -135M | 78M | -234M | 25M | -22M | 257M | -231M | -114M | 276M | -196M | 0 | -85M | -38M | -26M | 10M | 39M | -660M | -112.48M | -323M | -512.01M | -178.46M | 0 |
| Change in Payables | -1.21B | 0 | -2.44B | -2.55B | -3.33B | -1.86B | 71M | -1.79B | -571M | 141M | 103M | 467M | 659M | -235M | 10M | 144M | 370M | 710M | -628M | 190M | 66M | 346M | 365M | 841M | 272M | 81M | 102.39M | 107.54M | 555.6M | 453.7M | 598M |
| Cash from Investing | -3.87B | -3.91B | -4.09B | -5.2B | -6.17B | -6.82B | -6.01B | -5.85B | -5.47B | -5.68B | -4.98B | -9.45B | -5.75B | -3.55B | -3.8B | -4.05B | -3.42B | -2.78B | -2.38B | -2.9B | -4.12B | -2.45B | -2.35B | -3.66B | -1.49B | -1.61B | -2.11B | -1.71B | -1.45B | -1.39B | -1.19B |
| Capital Expenditures | -3.81B | -3.81B | -4.05B | -5.18B | -6.17B | -6.76B | -5.88B | -5.87B | -5.49B | -5.66B | -5.12B | -4.82B | -4.35B | -3.53B | -3.38B | -4.01B | -3.43B | -2.82B | -2.46B | -2.95B | -2.88B | -2.52B | -2.24B | -1.27B | -1.51B | -1.61B | -1.89B | -1.63B | -1.77B | -1.88B | -1.47B |
| CapEx % of Revenue | 4.14% | 4.02% | 4.61% | 5.9% | 6.85% | 7.23% | 7.02% | 8.48% | 7.88% | 8.65% | 8.48% | 9.57% | 9.16% | 7.75% | 7.62% | 9.39% | 8.74% | 8.11% | 6.93% | 7.76% | 8.18% | 7.8% | 7.61% | 5.14% | 6.72% | 7.84% | 9.65% | 8.91% | 10.55% | 11.85% | 12.77% |
| Acquisitions | 146M | 97M | 115M | 114M | 84M | 94M | -228M | 22M | -66M | -56M | 135M | -4.62B | -1.43B | -36M | -483M | -116M | -96M | 0 | -3M | -4M | -1.24B | 64M | -110M | -2.39B | 0 | -35M | -476.99M | -257.1M | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 0 | 0 | 84M | 94M | 102M | 0 | 83M | 42M | 35M | -10M | 24M | 18M | 55M | 74M | 111M | 35M | 79M | 54M | 0 | 0 | -2M | 1M | 21M | 38M | 257.66M | 176.4M | 321.19M | 490.94M | 279.2M |
| Cash from Financing | 2.03B | 2.75B | -4.02B | -3.43B | -2.6B | -3.02B | -2.09B | 3.38B | -1.04B | 227M | 528M | 3.61B | 1.35B | -2.72B | 1.18B | -244M | -287M | -692M | 400M | -617M | 193M | -324M | -776M | 1.15B | -174M | -406M | 122.25M | -174.49M | -227.6M | -247.2M | 212.5M |
| Debt Issued (Net) | 3.91B | 3.98B | -157M | -147M | -152M | -161M | -2.11B | 4.01B | 1.03B | 1.44B | 1.11B | 6.48B | 2.49B | 1.74B | 1.32B | -29M | -262M | -653M | 499M | -639M | 148M | -369M | -791M | 1.28B | -10M | -320M | 94M | 403M | -269.37M | -266.4M | 423.7M |
| Equity Issued (Net) | -470M | 196M | -2.49B | -2.01B | -1.27B | -2.06B | 740M | 61M | -1.48B | -1.02B | -509M | -2.54B | -1.25B | -4.3B | 34M | -69M | 108M | 94M | 41M | 108M | 115M | 144M | 99M | -64M | -105M | -89M | 29M | -591M | 41.76M | 33.92M | 31M |
| Dividends Paid | -1.36B | -1.37B | -1.34B | -1.26B | -1.18B | -793M | -686M | -679M | -683M | -535M | -426M | -277M | -227M | -187M | -177M | -164M | -151M | -138M | -137M | -124M | -110M | -97M | -84M | -66M | -60M | 0 | 0 | 0 | 0 | -7.79M | 0 |
| Share Repurchases | -1.3B | -796M | -3.02B | -2.5B | -1.5B | -2.25B | 0 | -3M | -1.48B | -1.02B | -509M | -2.72B | -1.25B | -4.86B | -246M | -197M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -179M | -186M | -177M | 0 | -607M | -8.17M | 0 | 0 |
| Other Financing | -49M | -55M | -30M | -11M | 1M | -1M | -38M | -9M | 97M | 337M | 355M | -51M | 344M | 25M | 5M | 18M | 18M | 5M | -3M | 38M | 40M | -2M | 0 | 0 | 1M | 3M | -1M | 14M | -2K | -6.94M | -9.7M |
| Net Change in Cash | 6.55B | 7.81B | -999M | -355M | -74M | -190M | 2.21B | 2.56B | -946M | -704M | 435M | -229M | 855M | -2.01B | 2.07B | 515M | 376M | -340M | 753M | -30M | -368M | 898M | -7M | 508M | 207M | 210M | 53.34M | -257.36M | 95.76M | 68.2M | 28.6M |
| Free Cash Flow | 4.37B | 5.12B | 2.98B | 3.14B | 2.64B | 3.07B | 4.25B | -771M | 123M | -989M | -186M | 890M | 1.02B | 731M | 1.31B | 828M | 607M | 322M | 294M | 537M | 681M | 1.16B | 881M | 1.75B | 360M | 613M | 150.42M | -2.18M | 2.17M | -173.8M | -463.1M |
| FCF Margin % | 4.75% | 5.4% | 3.39% | 3.58% | 2.93% | 3.28% | 5.07% | -1.11% | 0.18% | -1.51% | -0.31% | 1.77% | 2.15% | 1.6% | 2.96% | 1.94% | 1.54% | 0.93% | 0.83% | 1.41% | 1.93% | 3.59% | 3% | 7.08% | 1.6% | 2.97% | 0.77% | -0.01% | 0.01% | -1.09% | -4.02% |
| FCF Growth % | 27.4% | 71.62% | -4.94% | 18.74% | -13.95% | -27.81% | 651.36% | -726.83% | 112.44% | -431.72% | -120.9% | -12.66% | 39.4% | -44.33% | 58.57% | 36.41% | 88.51% | 9.52% | -45.25% | -21.15% | -41.19% | 31.44% | -49.63% | 385.83% | -41.27% | 307.52% | 7012.78% | -200.09% | 101.25% | 62.47% | 0.54% |
| FCF per Share | 17.99 | 21.41 | 12.27 | 12.49 | 10.32 | 11.54 | 15.86 | -2.94 | 0.46 | -3.64 | -0.69 | 3.19 | 3.55 | 2.36 | 4.14 | 2.61 | 1.91 | 1.03 | 0.94 | 1.72 | 2.19 | 3.74 | 2.87 | 5.76 | 1.19 | 2.02 | 0.51 | -0.01 | 0.01 | -0.58 | -1.57 |
| FCF Conversion (FCF/Net Income) | 0.97x | 2.01x | 1.72x | 1.92x | 2.22x | 2.57x | 1.94x | 3.96x | 10.39x | 1.02x | 1.64x | 3.14x | 5.11x | 2.03x | 3.00x | 2.38x | 2.78x | 2.65x | 28.09x | 3.10x | 1.77x | 2.04x | 2.15x | 3.60x | 2.25x | 3.14x | 3.50x | 2.36x | 2.81x | 3.39x | 2.79x |
| Interest Paid | 650M | 0 | 814M | 744M | 694M | 695M | 819M | 639M | 617M | 524M | 484M | 321M | 201M | 131M | 80M | 52M | 93M | 0 | 0 | 0 | 136M | 145M | 162M | 151M | 125M | 146M | 139M | 125M | 114.33M | 130.3M | 108.8M |
| Taxes Paid | -1.23B | 0 | 1.28B | 1.55B | 1.1B | 751M | 1.37B | 389M | 407M | 760M | 397M | 996M | 1.12B | 820M | 687M | 403M | 493M | 0 | 0 | 0 | 1.06B | 880M | 824M | 364M | 53M | 312M | 445M | 355M | 437.34M | 355.6M | 195.3M |
Integration execution and volume sensitivity
As reported in recent financial statements, FedEx consistently demonstrates an OCF/NI ratio exceeding 1.5x, with a peak of 2.21 in 2025Q3, indicating that the company's cash generation is significantly more robust than its GAAP net income figures might suggest to the casual observer.
The persistent gap between net income and operating cash flow is largely driven by substantial non-cash depreciation and amortization charges, which consistently hover around $1.1 billion per quarter. This suggests that while accounting earnings are dampened by the heavy asset base, the underlying cash engine remains resilient and capable of funding the capital-intensive network.
Based on the provided cash flow data, FCF margins have trended upward from a low of 1.1% in 2024Q3 to 7.2% by 2026Q4, reflecting a meaningful improvement in the company's ability to retain cash after accounting for necessary capital expenditures.
This trajectory suggests that the 'One FedEx' initiative may be beginning to yield operational efficiencies that allow for better cash conversion. Investors should monitor whether this margin expansion is sustainable or merely a byproduct of temporary reductions in capital intensity during the integration phase.
According to quarterly filings, FedEx maintains a capital-intensive profile with CapEx/Revenue ratios fluctuating between 2.8% and 6.6%, underscoring the ongoing requirement for heavy reinvestment to maintain its global air-hub-and-spoke infrastructure and aging aircraft fleet.
The variability in capital spending suggests that management is balancing necessary maintenance with strategic growth investments. The high level of depreciation relative to CapEx indicates that the company is effectively managing its asset base, though any sudden spike in replacement costs could pressure future free cash flow.
As evidenced by the consistent negative working capital changes across the last ten quarters, with a significant $1.6 billion outflow in 2025Q2, FedEx appears to be grappling with structural cash absorption within its operational cycle.
These recurring outflows suggest that the company's growth in volume or changes in payment terms may be tying up significant liquidity. This warrants further investigation into whether these trends reflect seasonal inventory builds or a more permanent shift in the efficiency of the cash conversion cycle.
Based on reported figures, FedEx has shifted its capital deployment from aggressive share repurchases in 2025 to a more conservative stance in 2026, while maintaining a steady dividend payout of approximately $340 million per quarter to return value to shareholders.
The reduction in buybacks suggests that management may be prioritizing liquidity preservation or internal restructuring costs over equity retirement. This defensive posture appears prudent given the execution risks associated with the ongoing network consolidation and the potential for macroeconomic volatility.
Quick answers to the most common questions about buying FDX stock.
FedEx Corporation (FDX) generated $8.93B in net cash from operating activities in 2026. This reflects the cash generated directly from core business operations.
FedEx Corporation (FDX) generated $5.12B in free cash flow in 2026. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
FedEx Corporation (FDX) spent $3.81B on capital expenditures in 2026. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2026, FedEx Corporation (FDX) returned $1.37B to shareholders via cash dividends and spent $796.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.