FedEx (FDX) AI Stock Analysis

• Market Cap: $53.72B
• Dividend Yield: 2.45%
• Average Volume (3M): 1.81M
• Price to Earnings (P/E): 13.5
• Beta (1Y): 0.90
• Revenue Growth: 0.27%
• EPS Growth: -2.64%
• Country: US
• Employees: 306,000
• Sector: Industrials
• Sector Strength: 73
• Industry: Integrated Freight & Logistics
• EPS (TTM): 6.07
• Shares Outstanding: 235,899,100
• 10 Day Avg. Volume: 1,617,519
• 30 Day Avg. Volume: 1,806,784
• 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: 1.57
• Enterprise Value/Revenue: 0.96
• Enterprise Value/Gross Profit: 4.43
• Enterprise Value/Ebitda: 8.30
• 1Y Price Target: $269.00
• Price Target Upside: 18.13% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 22

• Rating: 73 Outperform
• Price Target: $250.00 ▲(9.78% Upside)

FedEx's overall stock score of 73 reflects its strong financial performance and successful cost management, which are the most significant factors. While technical analysis indicates some short-term weakness, the company's strategic initiatives and reasonable valuation support a positive outlook. Challenges from global trade policies and B2B volume pressures are notable risks, but FedEx's operational resilience and strategic focus provide a solid foundation for future growth.

Positive Factors

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.

Valuation

FedEx looks attractive on a discounted SoTP basis with the Freight spin and the Network 2.0 integration.

Negative Factors

Demand Weakness

Management’s mid-August comments on softening B2C demand and weaker-than-expected LTL performance lowered the F1Q26 bar further.

International Challenges

International performance likely continues to be a drag, particularly in priority volumes and Transpacific lanes, where trade policy shifts are having a noticeable impact.

Tariff Impact

The expected $170mm tariff headwind to EBIT in the quarter could worsen throughout the year.

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 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: 227.72
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• 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 227.72 is below the 20-day moving average (MA) of 229.16, below the 50-day MA of 230.32, and below the 200-day MA of 242.30, indicating a bearish trend. The MACD of -0.46 indicates Positive momentum. The RSI at 48.66 is Neutral, neither overbought nor oversold. The STOCH value of 26.97 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	75 Outperform	$14.49B	12.54	13.98%	3.82%	14.40%	2.41%
FDX	73 Outperform	$53.72B	13.54	14.68%	2.45%	0.27%	-2.64%
EXPD	72 Outperform	$16.41B	19.73	39.01%	1.24%	23.70%	31.33%
XPO	69 Neutral	$15.42B	45.29	21.10%	―	-0.11%	-4.28%
UPS	69 Neutral	$72.08B	12.64	34.96%	7.70%	0.94%	9.62%
CHRW	69 Neutral	$14.89B	28.71	32.43%	1.97%	-2.55%	59.07%
Sector *	64 Neutral	$10.73B	15.74	7.63%	2.01%	2.75%	-15.09%

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.

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.

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.