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FedEx (FDX) AI Stock Analysis

MX:FDX

FedEx

(BMV:FDX)

Rating:―N/A
Action:N/A
Date:―

No summary available

Positive Factors
Strong Cash GenerationSubstantial free cash flow gives FedEx internal funding for fleet, network, technology and other investments while supporting dividends and repurchases. The year-over-year improvement and strong adjusted conversion indicate meaningful cash-generation capacity for the transformation period.
Negative Factors
Margin CompressionThe decline in operating and net margins shows that revenue scale has not fully translated into earnings improvement. Sustained margin pressure would reduce the benefit of growth, constrain reinvestment capacity and make execution of the transformation more important.

FedEx (FDX) vs. SPDR S&P 500 ETF (SPY)

-20%0%20%40%60%80%100%MX:FDX+61.24%SPY+11.79%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
MXN 73.47B
Dividend Yield
1.37%
Average Volume (3M)
349
Price to Earnings (P/E)
19.4
Beta (1Y)
0.04
Revenue Growth
10.63%
EPS Growth
25.73%
Country
Mexico
Employees
530,000
Sector
General
Sector Strength
55
Industry
Integrated Freight & Logistics

FedEx Business Overview & Revenue Model

Company Description

FedEx Corporation is a prominent global entity that delivers an extensive array of services encompassing transportation, e-commerce solutions, and diverse business support, catering to clients both within the United States and across international bo...

FedEx Earnings Call Summary

Earnings Call Date:―(Q5-2026)|Next Earnings Date:Apr 19, 2027
Earnings Call SentimentPositive

The call was strongly optimistic. FedEx reported broad revenue, earnings, margin, free cash flow, yield, international share, and premium-vertical growth, exceeded its transformation savings target, and issued an outlook for approximately 11% calendar year 2026 revenue growth and 20% adjusted EPS growth during the transition year. The company also acknowledged meaningful challenges, including the FedEx Freight earnings decline, aircraft grounding, declining Ground Economy and international domestic volumes, and higher labor, transportation, compensation, and pilot-related costs. Overall, the highlights significantly outweighed the lowlights.

Positive Updates

FY 2026 Revenue and Adjusted Operating Income Growth
FedEx grew full-year consolidated revenue and adjusted operating income by 8%. The company said FY 2026 results far exceeded its initial outlook and surpassed the high end of the revised outlook range provided in March.

Negative Updates

FedEx Freight Earnings Decline
FedEx Freight adjusted operating income declined by nearly $400 million for FY 2026. In Q4, Freight adjusted operating income fell by $114 million and adjusted operating margin declined 570 basis points.

Company Guidance

For CY 2026, FedEx expects consolidated revenue growth to be approximately 11%, including about 3 percentage points of assumed fuel price driven surcharge benefit, based on a CY 25 revenue baseline of approximately $82 billion; the June through December transition year is expected to deliver 10% revenue growth, an adjusted EPS range of $16.90 to $18.10 per diluted share with a midpoint of $17.50, $5.8 billion of adjusted operating income, 19% adjusted operating income growth, and an estimated $11.30 of adjusted EPS representing 20% year over year growth. The outlook assumes a low-single-digit volume decline within Ground Economy, a high-single-digit decline within international domestic services, CY 2026 CapEx of approximately $3.9 billion, a $475 million pension contribution with the plan 105% funded as of May 31, up to $1 billion of share repurchases during the remainder of CY 26, a $600 million FEC volume related revenue net of variable costs tailwind, a $3.7 billion FEC yield tailwind, a $2.6 billion base expense increase, an $800 million variable compensation headwind, a $200 million headwind from the new pilot agreement, and a $100 million benefit from removal of stranded cost; FedEx remains fully committed to realizing its targeted $6 billion adjusted free cash flow in CY 2029 and expects to remove about 30% of the remaining stranded costs this calendar year.

FedEx Risk Analysis

FedEx disclosed 3 risk factors in its most recent earnings report. FedEx reported the most risks in the "Finance & Corporate" category.

Higher RiskSector Avg.Lower RiskFinance & CorporateTech & InnovationLegal & RegulatoryProductionAbility to SellMacro & Political
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added

2 New Risks
1.We may not be able to achieve our calendar 2029 financial performance targets.Q1, 2026
2.We may not achieve the expected strategic or financial benefits relating to our investment InPost.Q1, 2026

FedEx Peers Comparison

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

MX:FDX against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
EXPDEXPD76Outperform$25.85B28.8640.68%0.79%6.77%12.05%
UPSUPS66Neutral$92.10B20.7828.51%6.06%-0.18%-19.99%
CHRWCHRW62Neutral$14.39B22.0939.59%2.02%10.38%12.97%
JBHTJBHT61Neutral$20.61B31.0518.71%0.81%10.59%23.25%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%
GXOGXO45Neutral$5.77B43.914.41%―7.55%114.56%

* General Sector Average

Performance Comparison

0%25%50%75%MX:FDXCHRWEXPDJBHTUPSGXODec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
MX:FDX and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
MX:FDXFedEx Corporation5970.002267.5061.24%
CHRWCh Robinson Worldwide124.61-25.26-16.85%
EXPDExpeditors International Of Washington198.8577.6664.08%
JBHTJB Hunt Transport Services221.0852.7131.31%
UPSUnited Parcel Service108.2519.9622.61%
GXOGxo Logistics Inc50.27-5.09-9.19%
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.