FedEx | 10-Q: FY2026 Q2 Revenue Beats Estimate at USD 23.47 B

Revenue: As of FY2026 Q2, the actual value is USD 23.47 B, beating the estimate of USD 22.8 B.

EPS: As of FY2026 Q2, the actual value is USD 4.04, beating the estimate of USD 3.8339.

EBIT: As of FY2026 Q2, the actual value is USD 1.424 B.

Federal Express Segment

Revenue

• Total Revenue: $20,433 million for the three months ended November 30, 2025, compared to $18,841 million for the same period in 2024, an increase of 8%.
• Total Revenue: $39,549 million for the six months ended November 30, 2025, compared to $37,146 million for the same period in 2024, an increase of 6%.

Operating Expenses

• Salaries and Employee Benefits: $6,824 million for the three months ended November 30, 2025, compared to $6,329 million for the same period in 2024, an increase of 8%.
• Purchased Transportation: $5,480 million for the three months ended November 30, 2025, compared to $5,067 million for the same period in 2024, an increase of 8%.
• Rentals and Landing Fees: $1,028 million for the three months ended November 30, 2025, compared to $987 million for the same period in 2024, an increase of 4%.
• Depreciation and Amortization: $931 million for the three months ended November 30, 2025, compared to $918 million for the same period in 2024, an increase of 1%.
• Fuel: $779 million for the three months ended November 30, 2025, compared to $835 million for the same period in 2024, a decrease of 7%.
• Maintenance and Repairs: $773 million for the three months ended November 30, 2025, compared to $715 million for the same period in 2024, an increase of 8%.
• Other: $3,271 million for the three months ended November 30, 2025, compared to $2,937 million for the same period in 2024, an increase of 11%.
• Total Operating Expenses: $18,882 million for the three months ended November 30, 2025, compared to $17,789 million for the same period in 2024, an increase of 6%.

Operating Income

• Operating Income: $1,551 million for the three months ended November 30, 2025, compared to $1,052 million for the same period in 2024, an increase of 47%.
• Operating Margin: 7.6% for the three months ended November 30, 2025, compared to 5.6% for the same period in 2024, an increase of 200 basis points.

FedEx Freight Segment

Revenue

• Total Revenue: $2,139 million for the three months ended November 30, 2025, compared to $2,177 million for the same period in 2024, a decrease of 2%.
• Total Revenue: $4,396 million for the six months ended November 30, 2025, compared to $4,506 million for the same period in 2024, a decrease of 2%.

Operating Expenses

• Salaries and Employee Benefits: $983 million for the three months ended November 30, 2025, compared to $976 million for the same period in 2024, an increase of 1%.
• Purchased Transportation: $197 million for the three months ended November 30, 2025, compared to $197 million for the same period in 2024, no change.
• Rentals: $76 million for the three months ended November 30, 2025, compared to $72 million for the same period in 2024, an increase of 6%.
• Depreciation and Amortization: $113 million for the three months ended November 30, 2025, compared to $112 million for the same period in 2024, an increase of 1%.
• Fuel: $110 million for the three months ended November 30, 2025, compared to $111 million for the same period in 2024, a decrease of 1%.
• Maintenance and Repairs: $89 million for the three months ended November 30, 2025, compared to $88 million for the same period in 2024, an increase of 1%.
• Other: $176 million for the three months ended November 30, 2025, compared to $166 million for the same period in 2024, an increase of 6%.
• Total Operating Expenses: $2,049 million for the three months ended November 30, 2025, compared to $1,865 million for the same period in 2024, an increase of 10%.

Operating Income

• Operating Income: $90 million for the three months ended November 30, 2025, compared to $312 million for the same period in 2024, a decrease of 71%.
• Operating Margin: 4.2% for the three months ended November 30, 2025, compared to 14.3% for the same period in 2024, a decrease of 1010 basis points.

Outlook

• Revenue Growth: Expected to continue into the second half of 2026, driven by U.S. Domestic service offerings.
• International Revenue: Expected to remain constrained due to the uncertain trade and geopolitical environment.
• Capital Expenditures: Expected to be approximately $4.5 billion for 2026, driven by investment in Network 2.0 initiatives and modernization efforts.