NYSE:FDX
FEDEX CORP
FedEx is a global logistics giant delivering packages and freight to over 220 countries with a robust air and ground network.
Key Metrics
Investment Thesis
Bull Case
FedEx offers attractive long-term value due to its dominant market position in express logistics and consistent ability to generate free cash flow exceeding $7B annually. The company's extensive infrastructure creates high barriers to entry, allowing it to navigate inflationary environments better than pure-play competitors while maintaining steady dividend growth.
Bear Case
Investors should be cautious given the modest revenue decline from 2023 highs and recent volatility in net income which suggests potential margin compression under current economic conditions. The high debt load relative to equity and substantial accumulated other comprehensive losses could limit flexibility during periods of rising interest rates or unexpected operational disruptions.
About FEDEX CORP
FedEx Corp operates as a global logistics leader providing transportation, e-commerce solutions, and freight services across over 220 countries. The company serves diverse markets including retail, healthcare, technology, and manufacturing through its extensive air cargo network and ground delivery system. Key products include express shipping, supply chain management software, and last-mile delivery solutions that facilitate the movement of goods for millions of customers worldwide.
Analysis
Management Discussion
Recent financial performance shows revenue stabilization at $87.93B in 2025 after a slight dip in 2024, while net income remained resilient around $4.09B despite broader economic headwinds. The company continues to return significant capital to shareholders through dividends and share repurchases while maintaining a strong cash position of $5.50B.
Industry Overview
The global logistics industry is experiencing rapid transformation driven by e-commerce growth, requiring companies to invest heavily in automation and last-mile delivery capabilities. FedEx competes in a fragmented market with large players like UPS and Amazon Logistics, where efficiency and network density are critical determinants of success.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | $90.16B | $87.69B | $87.93B |
| Cost of Revenue | $0 | $0 | $0 |
| Gross Profit | $90.16B | $87.69B | $87.93B |
| Operating Expenses | $85.24B | $82.13B | $82.71B |
| Operating Income | $4.91B | $5.56B | $5.22B |
| Stock-Based Comp | $182.0M | $163.0M | $154.0M |
| D&A | $4.18B | $4.29B | $4.26B |
| Amortization | $52.0M | $47.0M | $48.0M |
| Non-Operating Income | $451.0M | $277.0M | $224.0M |
| Interest Expense | $694.0M | $745.0M | — |
| Interest Income | $198.0M | $370.0M | $363.0M |
| Pre-Tax Income | $5.36B | $5.84B | $5.44B |
| Income Tax | $1.39B | $1.50B | $1.35B |
| Continuing Ops | $3.97B | $4.33B | $4.09B |
| Discontinued Ops | $0 | $0 | $0 |
| Net Income | $3.97B | $4.33B | $4.09B |
| Minority Interest | $0 | $0 | $0 |
| Net to Common | $3.97B | $4.33B | $4.09B |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Current Assets | $18.61B | $18.21B | $18.39B |
| Cash & Equivalents | $6.86B | $6.50B | $5.50B |
| Prepaid Expenses | $962.0M | $1.00B | $914.0M |
| Other Current Assets | $10.79B | $10.70B | $11.97B |
| Long-Term Assets | $68.53B | $68.80B | $69.24B |
| PP&E (Net) | $40.70B | $41.49B | $41.64B |
| Goodwill | $6.43B | $6.42B | $6.60B |
| Operating Leases | $17.35B | $17.11B | $16.45B |
| Other LT Assets | $4.05B | $3.77B | $4.54B |
| Total Assets | $87.14B | $87.01B | $87.63B |
| Current Liabilities | $13.59B | $13.36B | $15.41B |
| Accounts Payable | $3.85B | $3.19B | $3.69B |
| Current Leases | $2.39B | $2.46B | $2.56B |
| Deferred Revenue | $19.0M | $23.0M | $23.0M |
| Other Current Liab | $2.58B | $2.72B | $4.14B |
| Long-Term Liabilities | $47.47B | $46.07B | $44.14B |
| LT Operating Leases | $15.36B | $15.05B | $14.27B |
| Other LT Liab | $32.11B | $31.02B | $29.87B |
| Total Liabilities | $61.05B | $59.42B | $59.55B |
| Shareholders' Equity | $26.09B | $27.58B | $28.07B |
| Retained Earnings | $35.26B | $38.65B | $41.40B |
| AOCI | $-1.33B | $-1.36B | $-1.36B |
| Treasury Stock | $11.64B | $13.73B | $16.29B |
| Total L&E | $87.14B | $87.01B | $87.63B |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Net Income (CFO) | $3.97B | $4.33B | $4.09B |
| Non-Cash Adjustments | $9.02B | $6.18B | $3.69B |
| Working Capital Changes | $-4.14B | $-2.20B | $-743.0M |
| Cash from Operations | $8.85B | $8.31B | $7.04B |
| Cash from Investing | $-6.17B | $-5.20B | $-4.09B |
| Share Buybacks | $1.50B | $2.50B | $3.02B |
| Dividends Paid | $1.18B | $1.26B | $1.34B |
| Cash from Financing | $-2.60B | $-3.43B | $-4.02B |
| FX Effect | $-118.0M | $-41.0M | $76.0M |
| Net Change in Cash | $-41.0M | $-355.0M | $-999.0M |
| Beginning Cash | $6.90B | $6.86B | $6.50B |
| Ending Cash | $6.86B | $6.50B | $5.50B |
Frequently Asked Questions
How does FEDEX CORP make money?
The company derives revenue primarily from Express Package Services which dominate the portfolio, Ground Package Services covering last-mile delivery, and Global Business Services including freight forwarding and e-commerce supply chain solutions.
What are the main risks for FDX?
Fluctuations in fuel prices directly impact operating margins given the capital-intensive nature of air freight, intense competition from UPS and regional carriers pressures pricing power, and potential disruptions to global trade routes or geopolitical instability can severely hamper cross-border logistics operations.
What is FDX's competitive advantage?
FedEx maintains a massive owned-and-operated fleet of 580+ aircraft providing unmatched global reach, possesses a highly optimized ground network in North America, and benefits from significant scale economies in its hub-and-spoke operational model.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.