FedEx Corporation (FDX) AI Stock Analysis

FedEx Corporation offers transportation, e-commerce, and business services in the United States and internationally. Its FedEx Express segment delivers express transportation, small-package ground delivery, freight services, time-critical solutions, and cross-border enablement. The FedEx Ground segment specializes in day-certain delivery services for businesses and residences. FedEx Freight provides less-than-truckload freight services, operating approximately 30,000 vehicles and 400 service centers as of May 31, 2022. Additionally, FedEx Services delivers support including sales, marketing, and information technology, while Corporate, Other, and Eliminations provides supply chain management, customs brokerage, and ocean and air freight forwarding.

Between FY2022 and FY2026, FedEx Corporation expanded annual revenue from $93.51B to $94.72B, reflecting a 5-year revenue CAGR of 2.5%. After revenue contracted by 3.6% in FY2023 and 2.7% in FY2024, top-line growth recovered with a 0.3% increase in FY2025 and 7.7% in FY2026. Gross margin rose slightly from 21.6% in FY2022 to 21.8% in FY2026, while operating margin held at 7.0%. Net income reached $4.43B in FY2026 with diluted EPS of $20.21. For the latest quarter ended May 31, 2026, quarterly revenue grew 12.5% year-over-year, while quarterly earnings declined 4.3%.

As of May 31, 2026, FedEx held $13.31B in cash and short-term investments against total debt of $42.94B, resulting in net debt of $29.63B. Shareholders' equity stood at $31.65B, yielding a debt-to-equity ratio of 1.36, while the current ratio was 1.48. In FY2026, operating cash flow reached $8.93B. After funding $3.81B in capital expenditures, free cash flow was $5.12B. Cash allocation in FY2026 included $796.0M in share buybacks and $1.37B in dividends paid, contributing to a 10.1% reduction in share count over 5 years.

FDX trades at a trailing P/E of 15.8x and a forward P/E of 14.2x, which sit below the median of its S&P 500 Industrials peers of 28.5x and 20.7x, respectively. The company's enterprise value is $98.62B with an EV/EBITDA of 8.9x, compared to the peer median of 17.7x. FedEx has a price-to-sales ratio of 0.7x against the peer median of 3.3x. Over the past year, FDX gained 56.4%, outperforming the S&P 500 return of 16.8%, though its 5-year return of 75.7% trailed the benchmark return of 83.0%.

FedEx pays a forward annual dividend of $4.88, delivering a dividend yield of 1.66% with a payout ratio of 29.2%. The dividend is distributed on a quarterly frequency and has been paid for 25 consecutive years. Over the past 5 years, dividend growth annualized at 17.1%. The last ex-dividend date was September 14, 2026.

Wall Street sentiment includes 16 Strong Buy, 4 Buy, 7 Hold, 0 Sell, and 1 Strong Sell recommendations. The mean price target is $355.88, representing 21.2% upside compared to the last close of $293.55. For the current fiscal year ending May 31, 2027, consensus estimates project EPS of $19.50, an earnings decline of 3.6%, and revenue of $89.48B. Over the last four quarters, FedEx beat EPS estimates in 4 quarters. The next earnings date is October 28, 2026.

This page is an AI-written research summary of FedEx Corporation (FDX). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: FDX income statement, FDX balance sheet, FDX key metrics, FDX analyst forecast, FDX chart. See the FDX stock overview for the latest quote and news.