FedEx (FDX) AI Stock Analysis

• Market Cap: $63.39B
• Dividend Yield: 2.11%
• Average Volume (3M): 1.63M
• Price to Earnings (P/E): 15.7
• Beta (1Y): 0.93
• Revenue Growth: 1.14%
• EPS Growth: 4.99%
• Country: US
• Employees: 306,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Integrated Freight & Logistics
• EPS (TTM): 3.83
• Shares Outstanding: 235,955,460
• 10 Day Avg. Volume: 1,918,979
• 30 Day Avg. Volume: 1,627,532
• PEG Ratio: -4.71
• Price to Book (P/B): 1.89
• Price to Sales (P/S): 0.60
• P/FCF Ratio: 17.78
• Enterprise Value/Market Cap: 1.37
• Enterprise Value/Revenue: 0.98
• Enterprise Value/Gross Profit: 4.25
• Enterprise Value/Ebitda: 8.45
• 1Y Price Target: $272.40
• Price Target Upside: 1.39% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 21
• EPS Forecast (FY): 18.14
• Revenue Forecast (FY): $91.37B

• Rating: 75 Outperform
• Price Target: $295.00 ▲(9.80% Upside)

FedEx's overall stock score reflects its solid financial performance and reasonable valuation. The company's strong cash flow generation and strategic cost management are significant strengths. However, technical indicators suggest caution due to overbought conditions, and global trade challenges present ongoing risks.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective service offerings, supporting long-term business expansion.

Cash Generation

Strong cash generation enhances financial flexibility, enabling strategic investments and shareholder returns, supporting sustainable growth.

Strategic Collaboration

This collaboration leverages AI and data to optimize supply chains, potentially enhancing FedEx's competitive edge and operational efficiency.

Negative Factors

Global Trade Challenges

Global trade challenges, especially from China, can impact revenue and growth, posing long-term risks to international operations.

Pressure on FedEx Freight

Ongoing pressure on the FedEx Freight segment may affect profitability and market positioning, requiring strategic adjustments.

Higher Operating Costs

Rising operating costs could strain margins and limit investment capacity, impacting long-term financial performance.

FedEx Business Overview & Revenue Model

Company Description

FedEx Corporation provides transportation, e-commerce, and business services in the United States and internationally. The company's FedEx Express segment offers express transportation, small-package ground delivery, and freight transportation services; time-critical transportation services; and cross-border enablement, technology, and e-commerce transportation solutions. Its FedEx Ground segment provides day-certain delivery services to businesses and residences. The company's FedEx Freight segment offers less-than-truckload freight transportation services. As of May 31, 2022, this segment had approximately 30,000 vehicles and 400 service centers. Its FedEx Services segment provides sales, marketing, information technology, communications, customer service, technical support, billing and collection, and back-office support services. The company's Corporate, Other and Eliminations segment offers integrated supply chain management solutions, specialty transportation, customs brokerage, and global ocean and air freight forwarding services; and document and business services, as well as retail access to its customers for its package transportation businesses. FedEx Corporation was founded in 1971 and is based in Memphis, Tennessee.

How the Company Makes Money

FedEx generates revenue primarily through its various operational segments. The FedEx Express segment contributes a significant portion of revenue by providing time-sensitive courier services, including overnight and international shipping. FedEx Ground focuses on cost-effective parcel delivery services, catering to e-commerce customers and businesses. The FedEx Freight segment offers less-than-truckload (LTL) freight services, which is another vital revenue stream. Additionally, FedEx Logistics provides supply chain solutions and integrated services, enhancing overall revenue. The company also benefits from strategic partnerships with retailers and e-commerce platforms, further boosting its earnings. Seasonal spikes in demand, particularly during holiday periods, also contribute to increased revenues, as well as growth in online shopping trends driving demand for logistics services.

FedEx Financial Statement Overview

Summary

FedEx demonstrates a solid financial position with improving revenue growth and strong cash flow generation. The reduction in leverage enhances financial stability, while profitability metrics indicate room for operational efficiency improvements. Overall, FedEx is on a positive trajectory with a balanced approach to growth and risk management.

Income Statement

FedEx shows a strong gross profit margin of 23.03% TTM, indicating efficient cost management. The net profit margin of 4.65% TTM is modest, reflecting stable profitability. Revenue growth is positive at 0.76% TTM, rebounding from previous declines, suggesting a recovery trajectory. However, the EBIT margin of 6.62% TTM and EBITDA margin of 11.44% TTM indicate room for improvement in operational efficiency.

Balance Sheet

The debt-to-equity ratio has improved significantly to 0.18 TTM, showcasing a stronger balance sheet and reduced leverage risk. Return on equity is at 9.26% TTM, indicating moderate profitability for shareholders. The equity ratio of 74.17% TTM reflects a solid capital structure, enhancing financial stability.

Cash Flow

FedEx's free cash flow growth rate of 22.58% TTM highlights robust cash generation capabilities. The operating cash flow to net income ratio of 0.49 TTM and free cash flow to net income ratio of 0.48 TTM suggest efficient cash conversion, although there is potential for further improvement.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	88.59B	87.93B	87.69B	90.16B	93.51B	83.79B
Gross Profit	20.41B	19.00B	18.95B	19.17B	20.17B	17.79B
EBITDA	10.26B	10.49B	10.87B	10.23B	9.55B	11.26B
Net Income	4.12B	4.09B	4.33B	3.97B	3.83B	5.23B
Balance Sheet
Total Assets	88.42B	87.63B	87.01B	87.11B	85.99B	82.78B
Cash, Cash Equivalents and Short-Term Investments	6.17B	5.57B	6.50B	6.86B	6.90B	7.09B
Total Debt	37.91B	37.42B	37.72B	38.33B	37.19B	36.46B
Total Liabilities	60.65B	59.55B	59.42B	61.05B	61.05B	58.61B
Stockholders Equity	27.77B	28.07B	27.58B	26.09B	24.94B	24.17B
Cash Flow
Free Cash Flow	3.65B	2.98B	3.14B	2.64B	3.07B	4.25B
Operating Cash Flow	7.57B	7.04B	8.31B	8.81B	9.83B	10.13B
Investing Cash Flow	-3.91B	-4.09B	-5.20B	-6.17B	-6.82B	-6.01B
Financing Cash Flow	-3.51B	-4.02B	-3.43B	-2.60B	-3.02B	-2.09B

FedEx Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 268.67
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FDX, the sentiment is Positive. The current price of 268.67 is above the 20-day moving average (MA) of 249.88, above the 50-day MA of 239.63, and above the 200-day MA of 232.09, indicating a bullish trend. The MACD of 7.21 indicates Negative momentum. The RSI at 70.37 is Negative, neither overbought nor oversold. The STOCH value of 71.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FDX.

FedEx Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FDX	75 Outperform	$63.39B	15.70	14.98%	2.11%	1.14%	4.99%
ZTO	74 Outperform	$15.07B	12.94	13.98%	3.31%	14.40%	2.41%
XPO	73 Outperform	$16.36B	49.69	19.26%	―	-0.30%	-11.02%
UPS	72 Outperform	$78.95B	14.38	33.67%	6.83%	-1.25%	-2.25%
CHRW	71 Outperform	$17.92B	30.75	34.32%	1.66%	-7.08%	71.39%
EXPD	67 Neutral	$18.82B	22.86	36.47%	1.11%	12.54%	19.59%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

FedEx Corporate Events

FedEx Amends Credit Agreements for Spin-Off Plans

On October 31, 2025, FedEx amended its $1.75 billion three-year and five-year credit agreements with a group of financial institutions to prepare for the planned spin-off of FedEx Freight by June 2026. The amendments include the release of FedEx Freight from its guarantees, adjustments to financial covenants, and extensions of the termination dates for the credit agreements, reflecting strategic financial planning for the upcoming spin-off.

The most recent analyst rating on (FDX) stock is a Buy with a $280.00 price target. To see the full list of analyst forecasts on FedEx stock, see the FDX Stock Forecast page.

FedEx Annual Meeting Addresses Key Proposals

On September 29, 2025, FedEx held its annual meeting of stockholders where several key proposals were addressed. Thirteen directors were elected to serve until the next annual meeting in 2026, and the compensation for FedEx’s executive officers was approved. Additionally, the designation of Ernst & Young LLP as the independent accounting firm for the fiscal year ending May 31, 2026, was ratified. An amendment to the Stock Incentive Plan was approved, authorizing additional shares for issuance. A stockholder proposal for an independent board chairman was not approved. The Board also reviewed and maintained the compensation arrangements for outside directors, with minor adjustments to committee chairperson fees and the Lead Independent Director’s fees, while granting restricted stock units to elected directors.

The most recent analyst rating on (FDX) stock is a Hold with a $250.00 price target. To see the full list of analyst forecasts on FedEx stock, see the FDX Stock Forecast page.

FedEx Earnings Call: Growth Amid Global Challenges

FedEx Corporation’s recent earnings call painted a mixed picture, with the company reporting solid revenue growth and transformation-related savings, alongside strong domestic package performance and effective cost management. However, the sentiment was tempered by ongoing challenges in the global trade environment, particularly significant headwinds from China, and continued pressure on the FedEx Freight segment. Additional challenges include the expiration of the U.S. Postal Service contract and higher operating costs, which balance the positive developments noted in Europe and U.S. market share gains.

FedEx Reports Strong Q1 Earnings and Strategic Plans

FedEx Corporation, a global leader in transportation, e-commerce, and business services, has reported its first-quarter earnings for fiscal 2026, showcasing its strategic initiatives and financial performance. The company, known for its extensive logistics network, continues to focus on enhancing customer experience and operational efficiency.