FedEx Corporation

Strong FY2026 performance; strategy working (good/surprising): - CEO says FedEx finished FY2026 with “very strong free cash flow” and results exceeded even the high end of the revised outlook given earlier in the year. - Consolidated FY2026: Revenue +8% YoY and Adjusted Operating Income +8% YoY. - FedEx Express (FEC) drove strength: Revenue +9% YoY, Adjusted Operating Income +17% YoY, with ~60 bps margin expansion to 7.7% adjusted operating margin (highest in ~4 years) despite major headwinds (see risks below).

Q4 momentum but expected friction (good vs mixed): - Q4 consolidated: Revenue +13% YoY, but Adjusted Operating Income +3% YoY—explained as FEC strength offset by FedEx Freight decline (expected due to spin-off context). - FEC Q4: Revenue +14% YoY and Adjusted Operating Income +13% YoY, with base yield strength and volume across most services; fuel and variable compensation increased but did not materially hurt adjusted profitability (fuel was largely offset by surcharge dynamics).

Key forward outlook: Calendar 2026 EPS + transitional growth (forecast numbers—good): - Company is initiating Calendar 2026 outlook and shifting from fiscal to Dec 31 year-end reporting. - Adjusted earnings from continuing operations (CY2026): $16.90 to $18.10 per diluted share (midpoint $17.50). - This implies ~20% adjusted EPS growth in the June–December “transition year.” - CY2026 revenue growth assumption: ~+11%, including ~+3 pts of fuel price surcharge benefit (so underlying demand/price mix drives the rest). - Drove by premium B2B and high-value specialized B2C; vertical momentum highlighted in healthcare, automotive, aerospace, data centers.