Fedex Corp

FY2026 performance (what went right) - FedEx finished FY2026 with strong value creation and significant free cash flow. - Consolidated FY2026: Revenue +8% and Adjusted Operating Income +8% (with a meaningful offset from FedEx Freight decline). - FedEx Express (FEC) FY2026: Revenue +9%, Adjusted Operating Income +17%, and 7.7% adjusted operating margin (+60 bps, highest margin in 4 years). - Q4 FY2026 (consolidated): Revenue +13%, Adjusted Operating Income +3%, driven mainly by FEC, partially offset by freight.

Big initiatives driving results (Network + commercial strategy) - Progress from Network 2.0 / Tricolor / Europe transformation is improving density and efficiency, supporting structural cost reductions. - Network 2.0 flow-through: by end of month ~45% of eligible volume through ~490 optimized stations, rising to ~65% before peak; company will pause implementation until early 2027 (to preserve savings capture rhythm). - Europe: achieved 12 straight quarters of international revenue share gains, supported by improved service and a Duiven, Netherlands road hub investment.

Key forecast/outlook (including calendar transition) - Initiating calendar year 2026 outlook (moving from fiscal to Dec 31 year-end). - CY2026 adjusted EPS (continuing operations): $16.90 to $18.10 (midpoint $17.50), implying ~20% adjusted EPS growth for the June–December transition year. - CY2026 revenue growth guidance: ~11%, including ~3 points from fuel price-driven surcharge; expected revenue growth equivalent to ~10% for the transition year. - Outlook demand/mix expectations: strength in premium B2B and high-value B2C; U.S. Ground Economy expected to decline (company said ~low-single-digit volume decline) and international domestic services expected to decline (high-single-digit), reflecting intentional focus on higher-yield segments.