FedEx (FDX) AI Stock Analysis

• Market Cap: $54.51B
• Dividend Yield: 2.46%
• Average Volume (3M): 1.91M
• Price to Earnings (P/E): 13.7
• Beta (1Y): 0.89
• Revenue Growth: 0.27%
• EPS Growth: -2.64%
• Country: US
• Employees: 306,000
• Sector: Industrials
• Sector Strength: 78
• Industry: Integrated Freight & Logistics
• EPS (TTM): 6.07
• Shares Outstanding: 235,899,100
• 10 Day Avg. Volume: 2,004,416
• 30 Day Avg. Volume: 1,905,952
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.54
• Enterprise Value/Revenue: 0.96
• Enterprise Value/Gross Profit: 4.43
• Enterprise Value/Ebitda: 8.30
• 1Y Price Target: $268.45
• Price Target Upside: 18.12% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 21

• Rating: 73 Outperform
• Price Target: $254.00 ▲(11.77% Upside)

FedEx's overall stock score is driven by strong financial performance and positive earnings call outcomes, highlighting effective cost management and strategic initiatives. While technical analysis and valuation are moderate, the company's strategic financial moves and operational efficiency provide a solid foundation for future growth.

Positive Factors

Cost Savings

FedEx targets $1 billion in cost savings in F2026 from Drive and Network 2.0, with $200 million to be realized in Q1 and then gradually ramping through the year.

Pricing Strategy

Management was incrementally positive on U.S. domestic pricing compared to more recent earnings calls, specifically noting domestic fuel surcharges increased significantly.

Revenue Management

FedEx confirmed rising core parcel prices remain strong and will be a big part of driving a positive spread in revenue over cost.

Negative Factors

Guidance and Forecasting

The 1Q26 guidance is 9% below consensus on an adjusted basis and 14% lower on a GAAP basis, raising questions about earnings quality.

Market Sentiment

Sentiment on FDX and parcels remains negative as highlighted in the preview recommending to avoid the stock into the F4Q25 print.

Tariff Volatility

Tariffs remain an overhang and a source of volatility that could yield a wide range of earnings outcomes.

FedEx Business Overview & Revenue Model

Company Description

FedEx Corporation (FDX) is a global leader in logistics and transportation services, providing a wide range of solutions through its various segments, including FedEx Express, FedEx Ground, FedEx Freight, and FedEx Logistics. The company specializes in overnight and time-sensitive deliveries of packages and freight across the globe, offering services such as express transportation, ground shipping, freight services, e-commerce solutions, and supply chain management. With a robust network that spans over 220 countries and territories, FedEx is committed to connecting people and possibilities through innovative logistics solutions.

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 strong financial health with stable income generation and efficient cash flow management. The balance sheet shows moderate leverage, and while revenue growth faces challenges, profitability and cash generation remain robust. The company's operational efficiency and effective capital management support a positive financial outlook.

Income Statement

FedEx has shown a stable performance with consistent revenue and profitability over the years. The gross profit margin for the most recent year is approximately 26.5%, which is a solid indicator of operational efficiency. However, the net profit margin has slightly decreased to 4.7%, reflecting some cost pressures. Revenue growth has been modest, with a slight decrease in the latest annual period, indicating challenges in maintaining top-line growth. EBIT and EBITDA margins have been stable, supporting profitability resilience.

Balance Sheet

The balance sheet reflects a moderate level of financial leverage with a debt-to-equity ratio of approximately 1.33, which is manageable but indicates reliance on debt financing. The return on equity stands at 14.6%, showing effective use of shareholder funds. Equity ratio is about 32%, suggesting a balanced approach to financing through equity. Stability is evident, but there is room for improvement in reducing debt levels to enhance financial flexibility.

Cash Flow

FedEx's cash flow situation is robust, with positive operating cash flow consistently exceeding net income, indicating strong cash generation. The free cash flow to net income ratio is favorable, affirming efficient capital expenditure management. Despite a slight decline in free cash flow growth recently, the overall cash flow situation remains strong, providing a cushion for future investments or debt repayment.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	87.93B	87.93B	87.69B	90.16B	93.51B	83.79B
Gross Profit	19.00B	19.00B	18.95B	19.17B	20.17B	17.79B
EBITDA	10.13B	10.13B	10.87B	10.23B	9.55B	11.26B
Net Income	4.09B	4.09B	4.33B	3.97B	3.83B	5.23B
Balance Sheet
Total Assets	87.63B	87.63B	87.01B	87.11B	85.99B	82.78B
Cash, Cash Equivalents and Short-Term Investments	5.50B	5.50B	6.50B	6.86B	6.90B	7.09B
Total Debt	37.42B	37.42B	37.72B	38.33B	37.19B	36.46B
Total Liabilities	59.55B	59.55B	59.42B	61.05B	61.05B	58.61B
Stockholders Equity	28.07B	28.07B	27.58B	26.09B	24.94B	24.17B
Cash Flow
Free Cash Flow	2.98B	2.98B	3.14B	2.64B	3.07B	4.25B
Operating Cash Flow	7.04B	7.04B	8.31B	8.81B	9.83B	10.13B
Investing Cash Flow	-4.09B	-4.09B	-5.20B	-6.17B	-6.82B	-6.01B
Financing Cash Flow	-4.02B	-4.02B	-3.43B	-2.60B	-3.02B	-2.09B

FedEx Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 227.26
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FDX, the sentiment is Negative. The current price of 227.26 is below the 20-day moving average (MA) of 228.97, below the 50-day MA of 228.57, and below the 200-day MA of 245.57, indicating a bearish trend. The MACD of -0.44 indicates Negative momentum. The RSI at 48.64 is Neutral, neither overbought nor oversold. The STOCH value of 76.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FDX.

FedEx Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ZTO	79 Outperform	$15.77B	12.63	15.68%	3.51%	13.41%	10.00%
FDX	73 Outperform	$54.51B	13.74	14.68%	2.46%	0.27%	-2.64%
EXPD	72 Outperform	$16.27B	19.56	39.01%	1.25%	23.70%	31.33%
CHRW	67 Neutral	$14.35B	27.66	32.43%	2.05%	-2.55%	59.07%
UPS	67 Neutral	$75.05B	13.16	34.96%	7.39%	0.94%	9.62%
JBHT	66 Neutral	$13.98B	26.25	14.33%	1.22%	-2.24%	-5.43%
Sector *	58 Neutral	HK$13.63B	5.51	-2.78%	5.72%	2.29%	-57.50%

FedEx Corporate Events

FedEx Issues €850 Million in New Notes

On July 30, 2025, FedEx Corporation issued €500 million in 3.500% Notes due 2032 and €350 million in 4.125% Notes due 2037. This financial move is part of their strategy to incorporate these notes into their existing registration statement, potentially impacting their financial structure and market operations.

The most recent analyst rating on (FDX) stock is a Sell with a $200.00 price target. To see the full list of analyst forecasts on FedEx stock, see the FDX Stock Forecast page.

FedEx Secures €850 Million in New Notes Issuance

On July 23, 2025, FedEx Corporation and its subsidiaries entered into an underwriting agreement with major financial institutions for the issuance and sale of €500 million in 3.500% Notes due 2032 and €350 million in 4.125% Notes due 2037. This strategic financial move is expected to impact FedEx’s operations by potentially enhancing its liquidity and financial flexibility, which could strengthen its market positioning and provide benefits to its stakeholders.

The most recent analyst rating on (FDX) stock is a Hold with a $300.00 price target. To see the full list of analyst forecasts on FedEx stock, see the FDX Stock Forecast page.

FedEx Appoints New Chairman Following Founder’s Passing

On June 21, 2025, FedEx announced the passing of its founder and Executive Chairman, Frederick W. Smith. In response, the Board elected R. Brad Martin as the new Chairman, effective June 23, 2025, and reduced the Board size to twelve members. The company expressed deep condolences and gratitude for Smith’s contributions to FedEx and beyond.

The most recent analyst rating on (FDX) stock is a Hold with a $300.00 price target. To see the full list of analyst forecasts on FedEx stock, see the FDX Stock Forecast page.