Revenue growth decelerated sharply to 2.7% in 2027Q1 while operating margin fell to 4.7% from 8.4% and net margin hit a ten-quarter low of 1.3%, underscoring persistent margin volatility despite gross margin holding at 25.0%.
FedEx Corporation (FDX) annual income statement — 30-year revenue, gross profit & net income history
| 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 |
|---|
| Sales/Revenue | 95.33B | 94.72B | 87.93B | 87.69B | 90.16B | 93.51B | 83.79B | 69.22B | 69.69B | 65.45B | 60.32B | 50.37B | 47.45B | 45.57B | 44.29B | 42.68B | 39.3B | 34.73B | 35.5B | 37.95B | 35.21B | 32.29B | 29.36B | 24.71B | 22.49B | 20.61B | 19.63B | 18.26B | 16.77B | 15.87B | 11.52B |
| Revenue Growth % | - | 7.73% | 0.27% | -2.73% | -3.59% | 11.6% | 21.06% | -0.68% | 6.48% | 8.51% | 19.76% | 6.14% | 4.14% | 2.89% | 3.77% | 8.59% | 13.16% | -2.15% | -6.47% | 7.78% | 9.04% | 9.98% | 18.83% | 9.89% | 9.12% | 4.98% | 7.52% | 8.84% | 5.67% | 37.79% | 12.13% |
| Cost of Goods Sold | 77.27B | 74.1B | 68.93B | 68.74B | 70.99B | 73.34B | 66B | 55.87B | 54.87B | 51.35B | 46.55B | 38.54B | 36.7B | 36.19B | 35.4B | 33.97B | 31.52B | 27.89B | 28.41B | 29.7B | 27.18B | 24.8B | 22.67B | 3.84B | 3.61B | 3.56B | 3.3B | 3.08B | 1.4B | 1.29B | 6.02B |
| COGS % of Revenue | - | 78.23% | 78.4% | 78.39% | 78.74% | 78.43% | 78.77% | 80.72% | 78.73% | 78.45% | 77.18% | 76.52% | 77.35% | 79.43% | 79.94% | 79.59% | 80.18% | 80.3% | 80.05% | 78.25% | 77.19% | 76.78% | 77.21% | 15.52% | 16.04% | 17.28% | 16.81% | 16.86% | 8.33% | 8.1% | 52.25% |
| Gross Profit | 18.06B | 20.62B | 19B | 18.95B | 19.17B | 20.17B | 17.79B | 13.34B | 14.83B | 14.1B | 13.77B | 11.83B | 10.75B | 9.37B | 8.88B | 8.71B | 7.79B | 6.84B | 7.08B | 8.25B | 8.03B | 7.5B | 6.69B | 20.87B | 18.88B | 17.05B | 16.33B | 15.18B | 15.38B | 14.59B | 5.5B |
| Gross Margin % | - | 21.77% | 21.6% | 21.61% | 21.26% | 21.57% | 21.23% | 19.28% | 21.27% | 21.55% | 22.82% | 23.48% | 22.65% | 20.57% | 20.06% | 20.41% | 19.82% | 19.7% | 19.95% | 21.75% | 22.81% | 23.22% | 22.79% | 84.48% | 83.96% | 82.72% | 83.19% | 83.14% | 91.67% | 91.9% | 47.75% |
| Gross Profit Growth % | - | 8.57% | 0.23% | -1.12% | -4.96% | 13.37% | 33.31% | -10% | 5.14% | 2.45% | 16.4% | 10.03% | 14.67% | 5.52% | 1.99% | 11.82% | 13.86% | -3.42% | -14.18% | 2.76% | 7.09% | 12.06% | -67.94% | 10.56% | 10.76% | 4.4% | 7.57% | -1.28% | 5.41% | 165.16% | 9.93% |
| Operating Expenses | 11.91B | 14B | 12.91B | 12.6B | 13.83B | 13.64B | 11.77B | 10.49B | 10.04B | 8.97B | 8.34B | 8.31B | 8.41B | 5.93B | 5.67B | 5.39B | 5.32B | 4.83B | 5.13B | 5.3B | 4.75B | 4.49B | 4.22B | 21.35B | 19.67B | 18.3B | 17.42B | 16.12B | 15.01B | 14.06B | 9.41B |
| OpEx % of Revenue | - | 14.78% | 14.69% | 14.36% | 15.34% | 14.59% | 14.05% | 15.16% | 14.41% | 13.71% | 13.83% | 16.5% | 17.72% | 13.01% | 12.81% | 12.63% | 13.54% | 13.89% | 14.46% | 13.95% | 13.5% | 13.89% | 14.38% | 86.42% | 87.46% | 88.83% | 88.72% | 88.28% | 89.46% | 88.6% | 81.65% |
| Selling, General & Admin | 8.33B | 0 | 12.91B | 12.6B | 13.83B | 13.64B | 11.77B | 10.49B | 10.04B | 8.97B | 8.34B | 8.31B | 8.41B | 5.93B | 5.67B | 5.39B | 5.32B | 4.83B | 5.13B | 5.3B | 4.75B | 4.49B | 4.22B | 12.65B | 11.58B | 10.88B | 9.91B | 9.14B | 8.48B | 7.93B | 6.17B |
| SG&A % of Revenue | - | - | 14.69% | 14.36% | 15.34% | 14.59% | 14.05% | 15.16% | 14.41% | 13.71% | 13.83% | 16.5% | 17.72% | 13.01% | 12.81% | 12.63% | 13.54% | 13.89% | 14.46% | 13.95% | 13.5% | 13.89% | 14.38% | 51.18% | 51.5% | 52.79% | 50.5% | 50.04% | 50.58% | 49.98% | 53.53% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 1000K | 14B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 8.71B | 8.09B | 7.43B | 7.5B | 6.98B | 6.52B | 6.13B | 3.24B |
| Operating Income | 6.15B | 6.62B | 6.08B | 6.36B | 5.34B | 6.52B | 6.02B | 2.85B | 4.79B | 5.13B | 5.42B | 3.52B | 2.34B | 3.45B | 3.21B | 3.32B | 2.47B | 2.02B | 1.95B | 2.96B | 3.28B | 3.01B | 2.47B | 1.44B | 1.47B | 1.32B | 1.07B | 1.22B | 1.16B | 1.01B | -2.37B |
| Operating Margin % | - | 6.99% | 6.92% | 7.25% | 5.92% | 6.98% | 7.18% | 4.12% | 6.87% | 7.84% | 8.99% | 6.98% | 4.93% | 7.56% | 7.25% | 7.78% | 6.28% | 5.8% | 5.5% | 7.79% | 9.3% | 9.33% | 8.42% | 5.83% | 6.54% | 6.41% | 5.46% | 6.69% | 6.93% | 6.37% | -20.57% |
| Operating Income Growth % | - | 8.9% | -4.3% | 19.05% | -18.17% | 8.39% | 111.01% | -40.41% | -6.69% | -5.46% | 54.34% | 50.21% | -32.1% | 7.32% | -3.28% | 34.58% | 22.37% | 3.33% | -34.02% | -9.74% | 8.69% | 21.97% | 71.6% | -2.11% | 11.36% | 23.36% | -12.3% | 4.99% | 15.08% | 142.65% | -17.21% |
| EBITDA | 10.39B | 10.99B | 10.35B | 10.64B | 9.51B | 10.49B | 9.81B | 6.47B | 8.14B | 8.22B | 8.42B | 6.15B | 4.95B | 6.03B | 5.6B | 5.43B | 4.44B | 3.97B | 3.93B | 4.9B | 5.02B | 4.56B | 3.93B | 2.81B | 2.82B | 2.69B | 2.35B | 2.38B | 2.2B | 1.97B | -3.15B |
| EBITDA Margin % | - | 11.6% | 11.77% | 12.14% | 10.55% | 11.22% | 11.71% | 9.34% | 11.68% | 12.57% | 13.96% | 12.2% | 10.43% | 13.24% | 12.64% | 12.73% | 11.3% | 11.44% | 11.06% | 12.92% | 14.25% | 14.13% | 13.39% | 11.39% | 12.55% | 13.03% | 11.96% | 13.01% | 13.11% | 12.44% | -27.32% |
| EBITDA Growth % | - | 6.24% | -2.78% | 11.86% | -9.33% | 6.95% | 51.71% | -20.54% | -1.03% | -2.33% | 37% | 24.14% | -17.93% | 7.79% | 3.02% | 22.36% | 11.73% | 1.22% | -19.93% | -2.29% | 10% | 15.99% | 39.72% | -0.25% | 5.1% | 14.42% | -1.23% | 8.09% | 11.34% | 162.73% | -14.8% |
| D&A (Non-Cash Add-back) | 4.24B | 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 |
| EBIT | 5.48B | 6.76B | 6.23B | 6.58B | 6.06B | 5.58B | 7.47B | 2.34B | 1.24B | 4.91B | 5.09B | 3.08B | 1.86B | 3.45B | 2.54B | 3.19B | 2.35B | 1.97B | 762M | 2.11B | 3.35B | 3.04B | 2.47B | -430M | -786M | -1.26B | -1.09B | -1.83B | -1.03B | 1.81B | -4.06B |
| Net Interest Income | -479M | -533M | -426M | -375M | -496M | -636M | -741M | -617M | -529M | -510M | -479M | -315M | -221M | -142M | -61M | -39M | -77M | -71M | -59M | -54M | -53M | -104M | -139M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 0 | 0 | 363M | 370M | 198M | 53M | 52M | 55M | 59M | 48M | 33M | 21M | 14M | 18M | 21M | 13M | 9M | 8M | 26M | 44M | 83M | 38M | 21M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 479M | 533M | 789M | 745M | 694M | 689M | 793M | 672M | 588M | 558M | 512M | 336M | 235M | 160M | 82M | 52M | 86M | 79M | 85M | 98M | 136M | 142M | 160M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -1.06B | -830M | -641M | -519M | 25M | -1.63B | 656M | -1.18B | -4.13B | -776M | -846M | -775M | -713M | -157M | -756M | -179M | -202M | -122M | -1.27B | -941M | -61M | -115M | -158M | -121M | -133M | -161M | -144M | -83.26M | -102.02M | -111.14M | 4.49B |
| Pretax Income | 5.08B | 5.79B | 5.44B | 5.84B | 5.36B | 4.9B | 6.67B | 1.67B | 655M | 4.35B | 4.58B | 2.74B | 1.63B | 3.29B | 2.46B | 3.14B | 2.27B | 1.89B | 677M | 2.02B | 3.21B | 2.9B | 2.31B | 1.32B | 1.34B | 1.16B | 927.57M | 1.14B | 1.06B | 899.52M | 628.2M |
| Pretax Margin % | - | 6.12% | 6.19% | 6.65% | 5.95% | 5.24% | 7.96% | 2.41% | 0.94% | 6.65% | 7.59% | 5.44% | 3.43% | 7.22% | 5.54% | 7.36% | 5.76% | 5.45% | 1.91% | 5.31% | 9.13% | 8.98% | 7.88% | 5.34% | 5.95% | 5.63% | 4.73% | 6.23% | 6.33% | 5.67% | 5.45% |
| Income Tax | 1.18B | 1.36B | 1.35B | 1.5B | 1.39B | 1.07B | 1.44B | 383M | 115M | -219M | 1.58B | 920M | 577M | 1.19B | 894M | 1.11B | 813M | 710M | 579M | 891M | 1.2B | 1.09B | 864M | 481M | 508M | 435M | 343.2M | 449.4M | 429.73M | 401.36M | 267M |
| Effective Tax Rate % | 23.29% | 23.48% | 24.79% | 25.79% | 25.94% | 21.85% | 21.62% | 22.95% | 17.56% | -5.03% | 34.55% | 33.58% | 35.46% | 36.24% | 36.42% | 35.31% | 35.89% | 37.49% | 85.52% | 44.2% | 37.29% | 37.7% | 37.35% | 36.47% | 37.97% | 37.5% | 37% | 39.5% | 40.5% | 44.62% | 42.5% |
| Net Income | 3.9B | 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 | 503.03M | 361.2M |
| Net Margin % | - | 4.68% | 4.65% | 4.94% | 4.41% | 4.09% | 6.24% | 1.86% | 0.77% | 6.99% | 4.97% | 3.61% | 2.21% | 4.6% | 3.52% | 4.76% | 3.69% | 3.41% | 0.28% | 2.96% | 5.73% | 5.59% | 4.93% | 3.39% | 3.69% | 3.45% | 2.98% | 3.77% | 3.76% | 3.17% | 3.14% |
| Net Income Growth % | - | 8.33% | -5.52% | 9.04% | 3.82% | -26.86% | 306.77% | 138.15% | -88.19% | 52.55% | 64.67% | 73.33% | -49.93% | 34.34% | -23.18% | 39.94% | 22.64% | 1108.16% | -91.29% | -44.2% | 11.63% | 24.64% | 72.91% | 0.96% | 16.9% | 21.5% | -15.1% | 9.03% | 25.51% | 39.27% | 17.35% |
| Net Income (Continuing) | 3.9B | 4.43B | 4.09B | 4.33B | 3.97B | 3.83B | 5.23B | 1.29B | 540M | 4.57B | 3B | 1.82B | 1.05B | 2.32B | 1.56B | 2.03B | 1.45B | 1.18B | 98M | 1.13B | 2.02B | 1.81B | 1.45B | 838M | 830M | 725M | 584M | 688M | 631.33M | 498.15M | 196.1M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | - | 18.55 | 16.81 | 17.21 | 15.49 | 14.36 | 19.48 | 4.90 | 2.04 | 16.81 | 11.07 | 6.51 | 3.65 | 7.48 | 8.55 | 6.41 | 4.57 | 3.76 | 0.31 | 3.60 | 6.48 | 5.83 | 4.72 | 2.76 | 2.74 | 2.34 | 1.99 | 2.32 | 2.10 | 1.69 | 0.67 |
| EPS Growth % | - | 10.35% | -2.32% | 11.1% | 7.87% | -26.28% | 297.55% | 140.2% | -87.86% | 51.85% | 70.05% | 78.36% | -51.2% | -12.51% | 33.39% | 40.26% | 21.54% | 1112.9% | -91.39% | -44.44% | 11.15% | 23.52% | 71.01% | 0.73% | 17.09% | 17.59% | -14.22% | 10.48% | 24.26% | 152.24% | -50.37% |
| EPS (Basic) | - | 18.55 | 16.96 | 17.44 | 15.61 | 14.52 | 19.77 | 4.92 | 2.06 | 17.12 | 11.24 | 6.59 | 3.70 | 7.56 | 8.61 | 6.44 | 4.61 | 3.78 | 0.31 | 3.64 | 6.57 | 5.94 | 4.81 | 2.80 | 2.79 | 2.38 | 2.02 | 2.36 | 2.13 | 1.72 | 0.68 |
| Diluted Shares Outstanding | 239M | 239M | 243M | 251M | 256M | 266M | 268M | 262M | 265M | 272M | 270M | 279M | 287M | 310M | 317M | 317M | 317M | 314M | 312M | 312M | 311M | 309.78M | 306.99M | 303.62M | 302.92M | 303.42M | 293.47M | 296.55M | 300.63M | 297.65M | 294.46M |
| Basic Shares Outstanding | 236M | 239M | 243M | 248M | 254M | 263M | 264M | 261M | 262M | 267M | 266M | 276M | 283M | 307M | 315M | 315M | 315M | 312M | 311M | 309M | 307M | 304.04M | 301.25M | 299.29M | 297.49M | 298.32M | 289.11M | 291.53M | 296.4M | 292.46M | 291.43M |
| Dividend Payout Ratio | - | 30.99% | 32.72% | 29.07% | 29.63% | 20.73% | 13.11% | 52.8% | 126.48% | 11.7% | 14.21% | 15.22% | 21.62% | 8.92% | 11.34% | 8.07% | 10.4% | 11.66% | 139.8% | 11.02% | 5.46% | 5.37% | 5.8% | 7.88% | 7.23% | - | - | - | - | 1.55% | 9.63% |
Quick answers to the most common questions about buying FDX stock.
For fiscal year 2026, FedEx Corporation (FDX) reported total revenue of $94.72B. This represents a 722.2% increase compared to $11.52B in 1997.
FedEx Corporation (FDX) is profitable, generating $4.43B in net income for the fiscal year ending 2026 with a net profit margin of 4.7%.
FedEx Corporation (FDX) reported an operating income of $6.62B, resulting in an operating profit margin of 7.0%. This margin reflects the operational efficiency of the business before interest and taxes.
FedEx Corporation (FDX) generated $20.62B in gross profit for the year, representing a gross profit margin of 21.8%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Volatile margins and EPS compression
Metrics are mathematically derived from official filings.
Freight Revenue Growth Inflects Sharply
FDX's revenue growth accelerated meaningfully, rising from a contraction of 0.5% in early 2025 to 12.5% by 2026Q4, with the latest quarter posting $22.9 billion. This inflection, reported in recent SEC filings, suggests improving demand across freight and logistics segments warrants closer examination.
The acceleration from negative growth in 2024Q4–2025Q2 to double-digit growth in 2026Q4 marks a clear inflection, likely driven by a combination of volume recovery and pricing actions rather than inorganic contribution, given no disclosed acquisitions. However, the deceleration back to 2.7% growth in 2027Q1 raises durability questions — it is unclear whether this represents normalization or the beginning of a softer trend. Investors should watch whether the mid-2026 volume uplift is sustainable or reflects inventory front-loading across freight networks.
Gross Margin Expansion Unstable
FDX's gross margin swung from 20.3% in 2025Q1 to a peak of 26.4% in 2026Q2 before settling at 25.0% in 2027Q1, representing a 470-basis-point expansion. This volatility reflects uneven pricing and cost dynamics that may not be structurally sustainable over the medium term.
The swing between roughly 20% and 26% gross margin over just two years is unusually wide for an integrated freight operator, suggesting significant mix shift, fuel surcharge pass-through variability, or yield management actions rather than stable structural improvement. The 2026Q2 peak of 26.4% appears anomalous relative to the trailing trend and may reflect one-time pricing or cost recovery effects rather than a durable shift. Against peers like UPS at 18.1% gross margin, FDX's expanded margins do reflect relative strength, but the erratic pattern suggests the operating environment remains highly competitive and that margin protection is not assured.
EPS Collapse Amid Revenue Growth
FDX's diluted EPS fell 65.0% year-over-year to $1.21 in 2027Q1, even as revenue grew 2.7%, suggesting net income compression to $290 million. This disconnect between top-line growth and bottom-line contraction, per reported SEC filings, raises questions about non-operating items or one-time charges warranting closer scrutiny.
A $290 million net income figure on $22.9 billion of revenue yields a 1.3% net margin — the lowest in the entire dataset and far below the 6–7% range seen in healthy quarters like 2025Q4 or 2026Q4. This magnitude of decline, absent a disclosed tax event, restructuring charge, or pension adjustment, implies significant non-operating drags that may not recur, though this cannot be confirmed without further disclosure. The $78 million in stock-based compensation in 2027Q1 is also the highest recorded, which suggests elevated equity-linked expenses contributed meaningfully to the earnings miss and may indicate tightening of cash compensation structures.
Operating Leverage Erodes in Latest Period
FDX's operating margin contracted to 4.7% in 2027Q1 from 8.4% in 2026Q4, even though revenue remained above $22 billion. This suggests cost pressures may have risen meaningfully, and given R&D is reported at zero throughout, the operating leverage picture appears less favorable than recent quarters imply.
The sequential drop from $2.1 billion to $1.1 billion in operating income on a modest $2.1 billion revenue decline points to a disproportionate cost response — operating leverage ran in reverse in this period. SG&A data is unavailable for 2027Q1 and 2026Q4, which limits precision, but the historical SG&A ratio near 15% of revenue suggests that even small cost overruns can materially compress operating income at this scale. Relative to UPS's 8.9% operating margin, FDX's 4.7% represents a significant gap that may reflect higher network utilization costs or under-absorption of fixed infrastructure during lower-volume periods.
Margin Stability Is the Bear Case
The strongest bearish case centers on margin volatility: gross margin ranged from 20.3% to 26.4% over two years, and the latest net margin of 1.3% is the lowest in the dataset. This pattern, based on FDX's reported figures, may indicate structural cost pressures eroding pricing power.
A short-seller would argue that the revenue acceleration seen through 2026 was bought through yield concessions or fuel surcharge pass-through that failed to protect the bottom line, as evidenced by net income falling 65% in the very quarter growth decelerated. The fact that SBC spiked to $78 million in the weakest earnings quarter may also signal that management is compensating through equity instruments at a time when cash earnings are under pressure — a pattern that warrants closer investigation. Finally, the absence of any R&D investment across all ten quarters suggests FDX is not positioning for structural technology differentiation, which could leave it exposed to lower-cost competitors like XPO in freight brokerage and last-mile logistics over the medium term.