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FedEx (FDX)
NYSE:FDX
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FedEx
(NYSE:FDX)
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Rating:75Outperform
Price Target:
$295.00
▲(4.53% 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.
FedEx (FDX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$66.65B
Dividend Yield2.01%
Average Volume (3M)1.51M
Price to Earnings (P/E)16.5
Beta (1Y)0.89
Revenue Growth1.14%
EPS Growth4.99%
CountryUS
Employees306,000
SectorN/A
Sector StrengthN/A
IndustryIntegrated Freight & Logistics
Share Statistics
EPS (TTM)N/A
Shares Outstanding235,955,460
10 Day Avg. Volume1,447,465
30 Day Avg. Volume1,513,715
Financial Highlights & Ratios
PEG Ratio-4.71
Price to Book (P/B)1.89
Price to Sales (P/S)0.60
P/FCF Ratio17.78
Enterprise Value/Market Cap1.30
Enterprise Value/Revenue0.98
Enterprise Value/Gross Profit4.25
Enterprise Value/Ebitda8.45
Forecast
1Y Price Target
$288.78Price Target Upside2.33% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering20
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
FedEx Business Overview & Revenue Model
Company DescriptionFedEx Corporation (FDX) is a global leader in logistics and transportation services, providing a wide range of solutions for businesses and individuals. The company operates through several segments, including FedEx Express, FedEx Ground, FedEx Freight, and FedEx Logistics. Its core offerings encompass overnight shipping, freight transportation, e-commerce solutions, and supply chain management, serving customers in over 220 countries and territories worldwide.
How the Company Makes MoneyFedEx 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 Earnings Call Summary
Earnings Call Date:Sep 18, 2025
(Q1-2026)
| % Change Since: |
Next Earnings Date:Mar 19, 2026
Earnings Call Sentiment Neutral
FedEx reported solid revenue growth and transformation-related savings, coupled with strong domestic package performance and successful cost management. However, challenges persist in the global trade environment, particularly with significant headwinds from China, and continued pressure on the FedEx Freight segment. The expiration of the U.S. Postal Service contract and higher operating costs also pose challenges. While positive developments are noted, particularly in Europe and U.S. market share gains, the significant global trade headwinds and freight pressures balance the outlook.Q1-2026 Updates
Positive Updates
Solid Revenue Growth
FedEx reported a 3% year-over-year increase in revenue for Q1, driven by U.S. domestic package services.
Record Transformation-Related Savings
The company achieved $200 million in transformation-related savings and plans for $1 billion in savings in FY26.
Strong U.S. Domestic Package Performance
FedEx Express (FEC) revenue grew by 4%, with adjusted operating income up 17% and adjusted operating margin expanding by 70 basis points.
Successful Cost Management Strategies
FedEx continues to reduce structural costs and improve operational efficiency, including optimizing 70 additional U.S. stations.
Positive Developments in Europe
Year-over-year improvements in European labor and productivity metrics, and best new business quarter in Europe in the last 2 years.
Negative Updates
Challenges in Global Trade Environment
FedEx faces a $1 billion headwind due to the global trade environment, predominantly impacting top-line revenue, especially from China to U.S. lanes.
Pressure on FedEx Freight Segment
FedEx Freight continues to experience pressure due to industrial economic weakness, with a decline in average daily shipments and margin contraction.
Impact of U.S. Postal Service Contract Expiration
The expiration of the U.S. Postal Service contract resulted in a $130 million headwind for Q1.
Higher Operating Costs
FedEx anticipates a $2.1 billion base expense increase and $300 million in direct trade-related expenses.
Company Guidance
In the FedEx First Quarter Fiscal 2026 Earnings Call, the company reported a 3% year-over-year increase in revenue, driven by strong U.S. domestic package services, and achieved $200 million in transformation-related savings. Adjusted operating income grew by 7%, with Federal Express Corporation (FEC) seeing a 17% increase in adjusted operating income and a 70 basis point expansion in adjusted operating margin. Despite a challenging global trade environment and the expiration of the U.S. Postal Service contract, FedEx maintained strong yield management and commercial execution. The company forecasts full-year adjusted earnings per diluted share to fall between $17.20 and $19, with expectations of a 4% to 6% revenue growth. Notably, the company has made significant progress in its Network 2.0 rollout, optimizing around 70 additional U.S. stations, and advancing its spin-off of FedEx Freight, which is on track for June 2026.FedEx Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
72
Positive
Cash Flow
75
Positive
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FedEx Technical Analysis
Positive
282.21
Price Trends
258.02
Positive
243.08
Positive
233.10
Positive
Market Momentum
6.82
Negative
69.04
Neutral
66.96
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 282.21 is above the 20-day moving average (MA) of 273.87, above the 50-day MA of 258.02, and above the 200-day MA of 233.10, indicating a bullish trend. The MACD of 6.82 indicates Negative momentum. The RSI at 69.04 is Neutral, neither overbought nor oversold. The STOCH value of 66.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FDX.
FedEx Peers Comparison
UnderperformOutperform
Sector (―)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| ― | ― | ― | ― | ― | ― | ― | |
80 Outperform | $20.10B | 24.41 | 36.47% | 1.03% | 12.54% | 19.59% | |
75 Outperform | $66.65B | 16.51 | 14.98% | 2.01% | 1.14% | 4.99% | |
73 Outperform | $16.41B | 14.11 | 13.83% | 3.04% | 12.89% | 3.12% | |
72 Outperform | $84.93B | 15.47 | 33.67% | 6.55% | -1.25% | -2.25% | |
72 Outperform | $18.79B | 32.24 | 34.32% | 1.57% | -7.08% | 71.39% | |
70 Outperform | $17.39B | 52.15 | 19.26% | ― | -0.30% | -11.02% |
* Sector Average
FDX
FedEx
282.21
12.71
4.72%
CHRW
CH Robinson
159.04
56.30
54.80%
EXPD
Expeditors International
149.75
38.37
34.45%
XPO
XPO
148.15
2.64
1.81%
UPS
United Parcel
100.96
-15.80
-13.53%
ZTO
ZTO Express
21.05
1.99
10.44%
FedEx Corporate Events
Private Placements and FinancingBusiness Operations and Strategy
FedEx Amends Credit Agreements for Spin-Off Plans
Neutral
Nov 6, 2025
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.
Executive/Board ChangesShareholder Meetings
FedEx Annual Meeting Addresses Key Proposals
Neutral
Oct 2, 2025
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.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.