FedEx Delivers $4.4B Profit, Completes Freight Spin-Off, and Authorizes $5B Buyback
FDX sits 76% above its 52-week low of $174.012.
Summary
FedEx's annual report details a year of massive strategic change: the Freight spin-off is complete, a new $5B buyback is authorized, and the Supply Chain business is being sold for $1.4B. Strong earnings and a cash-rich balance sheet support the moves.
Key Events · Earnings and Guidance · FDX
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Full-Year Earnings Beat
Driven by yield improvement and cost discipline, revenue rose 8% to $94.7B, net income grew 8% to $4.4B, and diluted EPS hit $18.55.
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Freight Spin-Off Completed
The FedEx Freight separation closed on June 1, 2026. FedEx retained a 19.9% stake and received a $4.1B cash dividend, which was used to repurchase $4.9B of debt.
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$5B Buyback Authorized
On July 20, 2026, the board authorized a new $5.0B share repurchase program, adding to the $1.3B already deployed in fiscal 2026.
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Supply Chain Sale for $1.4B
Further streamlining the portfolio, FedEx announced the sale of its Supply Chain business to CMA CGM Group for $1.4B, expected to close in the second half of calendar 2026.
Analysis · FDX · Energy & Transportation
FedEx's 10-K cements a transformative year. Revenue reached $94.7 billion and net income hit $4.4 billion, while the long-planned spin-off of its Freight business was executed. With $13.3 billion in cash on the balance sheet, management immediately put capital to work through a new $5 billion buyback authorization and a $4.9 billion debt repurchase. The filing also reveals a $1.4 billion sale of the Supply Chain unit and a €2.2 billion investment in InPost, signaling a sharpened focus on the core express network. A new pilot contract locks in labor peace but at a steep cost—a 40% initial pay raise and a $625 million one-time payment. The sheer volume of material events, from the completed spin-off to the capital allocation blitz, makes this a thesis-altering filing for investors.
At the time of this filing, FDX was trading at $307.00 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $73.1B. The 52-week trading range was $174.01 to $345.37. This filing was assessed with positive market sentiment and an importance score of 9 out of 10.