FedEx (FDX) AI Stock Analysis

• Market Cap: $72.26B
• Dividend Yield: 1.94%
• Average Volume (3M): 1.49M
• Price to Earnings (P/E): 17.0
• Beta (1Y): 0.89
• Revenue Growth: 3.09%
• EPS Growth: 14.94%
• Country: US
• Employees: 306,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Integrated Freight & Logistics
• EPS (TTM): 4.82
• Shares Outstanding: 235,122,820
• 10 Day Avg. Volume: 1,044,073
• 30 Day Avg. Volume: 1,491,953
• 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: 1.16
• Enterprise Value/Revenue: 0.93
• Enterprise Value/Gross Profit: 4.01
• Enterprise Value/Ebitda: 8.01
• 1Y Price Target: $315.05
• Price Target Upside: 1.95% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 20
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 79 Outperform
• Price Target: $330.00 ▲(6.79% Upside)

FedEx's overall stock score reflects strong earnings performance and positive technical indicators, despite some valuation concerns. The company's strategic initiatives and resilience in overcoming operational challenges contribute to a positive outlook. However, the overbought technical signals and moderate dividend yield suggest caution in the short term.

Positive Factors

Revenue Growth

The 7% YoY revenue growth indicates strong demand for FedEx's services, driven by strategic initiatives and successful B2B segment expansion, which supports long-term business sustainability.

Network Transformation

The Network 2.0 initiative is set to deliver significant cost savings and operational efficiencies by FY 2027, enhancing FedEx's competitive edge and long-term profitability.

Spin-off Preparation

The planned spin-off of FedEx Freight is a strategic move to streamline operations and focus on core segments, potentially unlocking shareholder value and improving operational focus.

Negative Factors

MD-11 Fleet Grounding

The grounding of the MD-11 fleet presents operational challenges and cost implications, potentially affecting FedEx's efficiency and profitability if not resolved promptly.

Industrial Economy Weakness

Weakness in the industrial economy impacts FedEx Freight's performance, leading to reduced shipments and revenue, which could hinder overall growth if the trend persists.

Increased Costs and Headwinds

Significant cost headwinds from incentive compensation and operational challenges may pressure margins, requiring strategic cost management to maintain financial health.

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 shipping and logistics services. The FedEx Express segment, which offers time-sensitive overnight shipping services, constitutes a significant portion of its revenue, driven by both domestic and international shipments. FedEx Ground focuses on parcel delivery services for businesses and individuals, capitalizing on the growth of e-commerce. FedEx Freight provides less-than-truckload (LTL) freight services, catering to businesses with larger shipping needs. Additionally, FedEx Logistics offers supply chain management and consulting services, contributing to the company's revenue stream. Strategic partnerships with e-commerce platforms and retailers, along with investments in technology to enhance operational efficiency and customer experience, further bolster FedEx's financial performance.

FedEx Financial Statement Overview

Summary

FedEx demonstrates solid financial health with consistent profitability and efficient cash flow management. While revenue growth has decelerated, the company maintains strong margins and a balanced capital structure. Continued focus on managing debt levels and sustaining cash flow growth will be crucial for future stability and growth.

Income Statement

FedEx's income statement shows stable profitability with a gross profit margin of 23.24% and a net profit margin of 4.81% in the TTM period. The revenue growth rate is modest at 1.70%, indicating steady growth. EBIT and EBITDA margins are healthy at 6.87% and 11.62%, respectively, reflecting efficient operations. However, the revenue growth has slowed compared to previous years, which could be a concern if the trend continues.

Balance Sheet

The balance sheet reveals a moderate debt-to-equity ratio of 1.34, indicating a balanced approach to leveraging. Return on equity is strong at 21.01%, showcasing effective use of equity to generate profits. The equity ratio stands at 31.55%, suggesting a solid equity base. However, the company has a significant level of debt, which could pose risks if not managed carefully.

Cash Flow

Cash flow analysis shows a robust free cash flow growth rate of 18.99% in the TTM period, indicating improved cash generation. The operating cash flow to net income ratio is 0.51, and the free cash flow to net income ratio is 0.53, reflecting good cash conversion. Despite these strengths, the company needs to maintain this momentum to ensure long-term sustainability.

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

FedEx Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 309.01
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 309.01 is above the 20-day moving average (MA) of 291.94, above the 50-day MA of 274.74, and above the 200-day MA of 237.01, indicating a bullish trend. The MACD of 8.95 indicates Negative momentum. The RSI at 78.00 is Negative, neither overbought nor oversold. The STOCH value of 87.20 is Negative, 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
EXPD	80 Outperform	$21.03B	25.74	36.47%	1.02%	12.54%	19.59%
FDX	79 Outperform	$72.26B	17.05	15.87%	1.94%	3.09%	14.94%
ZTO	73 Outperform	$16.95B	14.56	13.83%	2.98%	12.89%	3.12%
UPS	72 Outperform	$89.43B	16.53	33.67%	6.55%	-1.25%	-2.25%
CHRW	72 Outperform	$19.70B	33.65	34.32%	1.51%	-7.08%	71.39%
XPO	70 Outperform	$16.89B	51.70	19.26%	―	-0.30%	-11.02%
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.