FedEx | 8-K: FY2027 Q2 Revenue: USD 22.86 B

Revenue: As of FY2027 Q2, the actual value is USD 22.86 B, compared to the market estimate of USD 23.07 B.

EPS: As of FY2027 Q2, the actual value is USD 1.21, compared to the market estimate of USD 5.1283.

EBIT: As of FY2027 Q2, the actual value is USD 1.133 B.

Consolidated Financial Performance (Three Months Ended September 30)

Operating Income

GAAP Operating Income: FedEx Corporation reported $1.07 billion for the three months ended September 30, 2026, an increase of 10% from $0.97 billion in the same period of 2025 .
Adjusted Operating Income (non-GAAP): This was $1.20 billion in 2026, up from $1.03 billion in 2025 .

Operating Margin

GAAP Operating Margin: This was 4.7% in 2026, compared to 4.8% in 2025 .
Adjusted Operating Margin (non-GAAP): This was 5.3% in 2026, an increase from 5.1% in 2025 .

Net Income

GAAP Net Income: This was $0.29 billion for the three months ended September 30, 2026, a decrease from $0.65 billion in the prior year period .
Adjusted Net Income (non-GAAP): This was $0.90 billion in 2026, compared to $0.69 billion in 2025 .

Operating Costs

Total operating expenses for the three months ended September 30, 2026, were $21.788 billion, an increase of 12% from $19.460 billion in the prior year period .
Key operating expense changes year-over-year include:
- Purchased transportation increased by 19% to $6.455 billion in 2026 from $5.419 billion in 2025 .
- Fuel costs increased by 64% to $1.270 billion in 2026 from $0.774 billion in 2025 .
- Salaries and employee benefits rose by 5% to $7.434 billion in 2026 from $7.078 billion in 2025 .

Segment Performance (Three Months Ended September 30, GAAP)

Express U.S. Domestic Segment

Operating income increased by 7% to $946 million in 2026 from $884 million in 2025 .
Operating margin was 6.4% in 2026, a decrease from 6.6% in 2025 .
Total revenue was $14.710 billion in 2026, up 10% from $13.392 billion in 2025 .

Express International Segment

Operating income increased by 15% to $220 million in 2026 from $192 million in 2025 .
Operating margin was 2.9% in 2026, a slight decrease from 3.0% in 2025 .
Total revenue was $7.465 billion in 2026, up 17% from $6.363 billion in 2025 .

Cash Flow and Capital Returns (Nine Months Ended September 30)

Cash provided by operating activities was $7.448 billion in 2026, an increase from $6.638 billion in 2025 .
Cash used in investing activities was -$5.576 billion in 2026, compared to -$2.897 billion in 2025, primarily due to the purchase of an equity method investment of -$2.501 billion .
Cash used in financing activities was -$486 million in 2026, a decrease from -$2.413 billion in 2025 .
FedEx Corporation completed $2.0 billion in stock repurchases during June through September 2026 .
Cash on-hand as of September 30, 2026, was $8 billion .

Unique Metrics & Business Developments

FedEx Corporation completed the spin-off of FedEx Freight on June 1, 2026, retaining a 19.9% ownership interest and recognizing a loss of -$1.2 billion on the income statement within “Gain/(loss) on short-term investment” . The carrying value of this equity security was $3.3 billion at September 30, 2026 .
The company utilized cash proceeds from a $4.1 billion dividend from FedEx Freight to fund cash tender offers for approximately $4.9 billion of outstanding debt securities, resulting in a non-GAAP, pre-tax gain of $627 million .
On October 1, 2026, FedEx Corporation completed the sale of its subsidiary FedEx Supply Chain for approximately $1.4 billion .
Effective January 4, 2027, FedEx parcel shipping rates will increase by an average of 5.9% .

Outlook / Guidance (Calendar Year 2026)

FedEx Corporation has revised its calendar year 2026 forecast, now expecting revenue growth of approximately 12% year-over-year, an increase from the prior forecast of 11% . The adjusted diluted EPS is projected to be between $18.00 and $18.60, up from the previous forecast of $16.90 to $18.10 per diluted share . Capital spending is expected to remain unchanged at $3.9 billion, prioritizing network optimization and efficiency improvements .