Slides
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1 Calendar third quarter 2026 earnings October 28, 2026
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Certain statements in this presentation may be considered forward -looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements regarding expected cost savings, future financial targets, business strategies, management’s views with respect to future events and fi nancial performance, and the assumptions underlying such expected cost savings, targets, strategies, and statements. Forward -looking statements include those preceded by, followed by or that include the words “will,” “may,” “could,” “would,” “should,” “believes,” “expects,” “forecasts,” “anticipates,” “plans,” “estimates,” “targets,” “projects,” “intends,” “determined to,” or similar ex pressions. Such forward-looking statements are subject to risks, uncertainties and other factors which could cause actual results to differ materially from historical experience or from future results exp ressed or implied by such forward-looking statements. Potential risks and uncertainties include, but are not limited to, economic conditions in the global markets in which we operate; uncertainty and additional volatility in the global trade environment; our ability to successfully implement our business strategies and global transformation program and network optimization initiatives, includ ing Network 2.0 and Tricolor, effectively respond to changes in market dynamics, and achieve the anticipated benefits of such strategies and actions; our ability to achieve our cost reduction init iatives and financial performance goals, including our 2029 financial performance targets; our ability to achieve the anticipated benefits of the tax -free full separation of the FedEx Freight business into a new publicly traded company (the “FedEx Freight Spin- Off”); the possibility of disruption, including changes to existing business relationships, disputes, litigation, or unanticipated costs in connection with the FedEx Freight Spin-Off; the timing and amount of any costs or benefits or any specific outcome, transaction, or change (of which there can be no assurance), or the terms, timing, and structure thereof, related to our global transformation program and other ongoing reviews and initiatives; a significant data breach or other disruption to our technology infrastructure; damage to our reputation or loss of brand equity; our ability to meet our labor and purchased transportation needs while controlling related costs; failure of third -party service providers to perform as expected, or disruptions in our relationships with those providers or their provision of services to FedEx; the effect of any international conflicts or terrorist activities, including as a result of the current conflicts between Russia and Ukraine and in the Middle East; evolving or new U.S. domestic or international laws and government regulations, policies, and actions, including regulatory and/or legal complianc e requirements that can affect our ability to efficiently or fully utilize our aircraft; changes in fuel prices or currency exchange rates, including significant increases in fuel prices as a result of the o ngoing conflicts between Russia and Ukraine and in the Middle East and other geopolitical and regulatory developments; the effect of intense competition; our ability to match capacity to shifting volume levels; an increase in self-insurance accruals and expenses; failure to receive or collect expected insurance coverage; loss or delay in the collection of accounts receivable, including those relat ed to tariffs in light of recent judicial rulings; the effect of technology developments, including autonomous technology and artificial intelligence; our ability to effectively operate, integrate, lev erage, and grow acquired businesses and complete and realize the anticipated benefits of acquisitions and other strategic transactions including FedEx's investment in InPost, as a consortium member, and related commercial agreements; noncash impairment charges related to our goodwill and certain deferred tax assets; the future rate of e- commerce growth; future guidance, regulations, interpretations, challenges, or judicial decisions related to tariffs and our tax positions; labor-related disruptions; legal challenges or changes related to service providers contracted to conduct certain linehaul and pickup-and-delivery operations and the drivers providing services on their behalf and the coverage of U.S. employees at Federal Express Corporation under the Railway Labor Act of 1926, as amended; our ability to quickly and effectively restore operations following adverse weather or a localized disaster or disturbance in a key geography; the effects of a widespread o utbreak of an illness or any other communicable disease or public health crises; any liability resulting from and the costs of defending against litigation, including refunds of tariffs; our ability to achieve or demonstrate progress on our goal of carbon-neutral operations by 2040; successful completion of future stock repurchases; and other factors which can be found in FedEx Corp.’s and its subsid iaries’ press releases and FedEx Corp.’s filings with the SEC, including our Annual Report on Form 10-K for the fiscal year ended May 31, 2026 and subsequent Quarterly Reports on Form 10 -Q. Any forward-looking statement speaks only as of the date on which it is made. We do not undertake or assume any obligation to update or revise any forward-looking statement, whether as a result of new informat ion, future events, or otherwise. FedEx reports its financial results in accordance with accounting principles generally accepted in the United States (“GAAP”) . We have supplemented the reporting of our financial information determined in accordance with GAAP with certain non- GAAP (or “adjusted”) financial measures. Reconciliations of non-GAAP measures used in this presentation to the most directly comparable GAAP measures are included below under “Appendix.” The financial targets and outlook provided herein and discussed during this presentation assume the company’s current economi c forecast and fuel price expectations and no additional adverse economic, geopolitical or international trade-related developments. FedEx’s earnings per share and effective tax rate forecasts are based on current law and related regulations and guidance. CY2026 guidance in the presentation and discussed during the conference call was effective on October 28, 2026 . Nothing discussed d uring this presentation should be construed as reaffirming or disaffirming such guidance. Forward-Looking Statements and Non-GAAP Financial Measures 3
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Key messages • Grew revenue across key B2B verticals and premium B2C, supporting double- digit growth in consolidated adjusted operating profit* • Transforming our network globally through Network 2.0, European network optimization, and global air freight strategy • Announced partnerships to provide value-added services, building our data and technology advantage • Becoming a more focused company through the successful spin-off of FedEx Freight, sale of FedEx Supply Chain, and impending InPost transaction • Repurchased $2 billion of FedEx stock in June – September period *Non-GAAP financial measure; see appendix for more information. 5
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Commentary: • Revenue growth supported by strong base yields across both U.S. Domestic and International • Grew adjusted operating income despite headwinds from purchased transportation rates, new pilot agreement, and variable compensation • Grew U.S. Domestic revenue by 10% and adjusted operating income by 7% • Grew International revenue by 17% and adjusted operating income by 52% • Raising and tightening our CY26 EPS outlook to $18.00 to $18.60; midpoint of range implies 23% adjusted EPS growth year-over-year for full year • Expect to generate ~$4 billion in adjusted free cash flow* in CY26 Consolidated Results Q3 CY26 Revenue $22.9B 12% Y o Y Adj. operating income* $1.20B 16% Y o Y Adj. operating margin* 5.3% 20 bps Y o Y Adj. EPS* $3.74 28% Y o Y Q3 results overview Delivered strong earnings growth year-over-year *Non-GAAP financial measure; see appendix for more information. 6
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Growing in high-margin verticals HEAL THCARE AUTOMOTIVE DATA CENTERS AEROSPACE Majority of our quarterly revenue growth came from B2B services 7
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• Nearly 65% of eligible volume flowing through ~630 Network 2.0 optimized stations; 260+ stations closed to date • Expect ~$1 billion of Network 2.0 and related One FedEx savings by year-end; expect $2 billion savings by end of 2027 • European network transformation underway, replacing fragmented domestic infrastructure with a leaner, digitally enabled network focused on high-value cross- border flows and long-term competitiveness Transforming our industrial network 8
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Building on our data and technology advantage 15 9 • Leveraging global end-to-end network and operational data to deliver visibility and supply chain management tools to customer • Expanding our leadership in logistics orchestration, including a U.S. Army collaboration to modernize non- tactical logistics networks, supply chain procedures, and organic industrial base sites • Advancing physical AI to improve safety and efficiency, deploying Dexterity robotic loaders at the Hagerstown, MD hub to support Peak and post-Peak operations
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FedEx revenue performance *Non-GAAP financial measure; see appendix for more information. U.S. Domestic • Growth driven by base yield expansion, higher fuel surcharges, and volume growth $13.4B $14.7B Q3 CY25* 10% $6.4B $7.5B 17% • Growth driven by higher fuel surcharges, base yield expansion, and export volume growth Q3 CY26* Q3 CY25* Q3 CY26* 11 International
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Volume trends by service 6% 4% 4% 3% 2% 2% Apr May Jun Jul Aug Sep Federal Express Ground Package YoY 2% 3% 3% 2% (1%) 4% Apr May Jun Jul Aug Sep Federal Express U.S. Priority and Deferred Package YoY Q3 CY26 average daily volume Federal Express International Export Package YoY 3% 15% 10% 8% 7% 9% Apr May Jun Jul Aug Sep Q2 CY26 average daily volume 12 Federal Express International Export Freight Pounds YoY 13% 15% 13% 16% 14% 16% Apr May Jun Jul Aug Sep
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0% 2% 4% 6% 8% 10% 12% 14% Q3 CY25 Q4 CY25 Q1 CY26 Q2 CY26 Q3 CY26 Federal Express U.S. Priority and Deferred Federal Express Ground Federal Express International Export Federal Express Int'l Freight Yield per Pound Yield trends by service 13 YoY yield by calendar quarter
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Strategic commercial priorities Healthcare • Achieved 30 IATA CEIV pharma certifications across our global air hubs and cargo handling facilities 15 14 Automotive • Assembled a dedicated automotive team and specialized model combining 24/7 support, flexible global pickup, enhanced visibility, and tailored integrated logistic solutions • Onboarded 13 major automotive customers to value- added services, delivering long-term profitable revenue growth Digital solutions • Launched Global Trade Navigator, allowing customers to address challenges earlier and throughout the international shipping journey • Introduced FedEx Authenticated Delivery, which uses QR code authentication to help ensure packages are released to authorized recipients
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• Expect full-year revenue growth of ~12%, including approximately four percentage points of fuel-price driven surcharge revenue benefit • Q4 revenue expectations: o Current volume and yield trends directionally similar to Q3 o Sustained declines in Ground Economy and International Domestic volume o Implicit revenue growth of ~10% in Q4, with U.S. Domestic up high-single-digits, including three percentage points from fuel-price driven surcharge revenue o International revenue up high-teens, including seven percentage points coming from fuel-price driven surcharge revenue Revenue outlook Planning for busy Peak and focused commercial execution to drive revenue quality 15
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U.S. Domestic International $972M Third quarter calendar 2026 financial results Disciplined revenue strategies and continued cost management delivered improved profitability $22.9B Consolidated Revenue Revenue $14.7B Adj. Operating Income* Revenue $7.5B Adj. Operating Income* $297M $1.20B Adj. Operating Income* $3.74 Adj. Earnings Per Share* $1.3B Dividends Paid 10% Y o Y 52% Y o Y7% Y o Y 17% Y o Y $2.9B CapEx *Non-GAAP financial measure; see appendix for more information. 12% Y o Y 16% Y o Y 28% Y o Y 17 $2.0B Shares Repurchased YTD YTD Through 10/1
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FedEx adjusted operating income* performance *Non-GAAP financial measure; see appendix for more information. U.S. Domestic • Delivered higher Q3 adjusted operating income* year- over-year, driven by higher package yields and volumes, improved service mix, and transformation savings; partially offset by increased over-the-road linehaul purchased transportation rates and higher salaries and benefits • Adjusted operating margin* declined 20 bps, driven by 30 bps headwind from higher fuel prices $905M $972M Q3 CY25* 7% $196M $297M 52% • Adjusted operating income* and margin* improvement driven by continued strong base pricing, higher international export volume and airfreight weight, primarily out of Asia and the U.S.; partially offset by higher wage rates increased purchased transportation rates, and impacts from global trade policy changes Q3 CY26* Q3 CY25* Q3 CY26* 18 International
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Capital allocation priorities • Repurchased $2 billion of FedEx stock since June; have an additional $4.3 billion authorized by the Board • Reduced share count 25% since FY13; remain focused on disciplined capital allocation as we progress toward our $6 billion 2029 adjusted free cash flow* target • Expect $3.9 billion CapEx for CY26 of which 90% is maintenance or efficiency related; remain committed to 4% 2029 CapEx-to-revenue target and $1 billion or less in annual aircraft CapEx Taking a balanced approach, in support of stockholder value creation 19 6.8% of revenue 5.9% of revenue 7.2% of revenue 4.6% of revenue FY24 FY25FY22 FY23 $6.8B $6.2B $4.1B $5.2B $3.8B FY26 CY26 $3.9B 4.0% of revenue *Non-GAAP financial measure; see appendix for more information.
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*Non-GAAP financial measure; prior to mark-to-market retirement plans accounting adjustments, which are impracticable to calculate at this time. See appendix for more information CY26 outlook Jun 2026 Oct 2026 Revenue ~11% ~12% Adjusted EPS* $16.90 – $18.10 $18.00 – $18.60 Effective Tax Rate * ~23% ~22.5% CapEx $3.9B $3.9B Adj. Free Cash Flow* N/A ~$4B Details: • Q1 adjusted EPS was $3.25; Q2 adjusted EPS was $4.98, including $2.03 of adjusted EPS for the month of June • Given year-to-date performance, raising and tightening adjusted EPS range • Adjusted EPS midpoint of $18.30 implies a 23% increase year-over-year • Expect consolidated revenue growth of ~12%, with about four percentage points of fuel-price driven surcharge revenue benefit • Expect full-year adjusted operating margin to be up slightly year-over-year despite the fuel-related impact 20 growth rate YoY
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Illustrative operating income bridge based on the midpoint of CY26 adjusted EPS* outlook 1-Includes ~$350 million of stranded costs from FedEx Freight 2-Yield excludes fuel-price driven surcharge variations and currency exchange rate effects. $5.0B $5.9B $0.8B $3.7B CY25 Adjusted Operating Income¹* Volume, Net of Costs Yield² ($2.7B) Base expense increase ($0.8B) Variable Comp ($0.2B) New Pilot Contract $0.1B FedEx Freight Stranded Cost CY26 Adjusted Operating Income* *Non-GAAP financial measure; see appendix for more information. 21
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Q4 CY26 Considerations 15 22 • Embedded Q4 adjusted EPS* range assumption is $6.03 – $6.63; results will depend upon yield, service mix, and continued traction on cost reduction initiatives • Expect Q4 adjusted International operating margin* expansion year-over-year • Expect Q4 adjusted U.S. Domestic operating margin* down moderately year-over-year due to higher purchased transportation rates, fuel impact, and temporary cost headwinds • Expect our Q4 CY26 average share count to be approximately 238 million shares *Non-GAAP financial measure; see appendix for more information.
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23 Q&A 23
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Appendix 24
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Non-GAAP financial measures Our calendar 2026 adjusted earnings per share (“EPS”) forecast is a non-GAAP financial measure because it excludes calendar 2026 MTM adjustments for retirement plan accounting, MTM accounting for the FedEx Freight investment, gain on extinguishment of debt, and estimated restructuring, exit and other costs. Our calendar 2026 ETR forecast is a non-GAAP financial measure because it excludes the effect of calendar 2026 MTM adjustments for retirement plan accounting, MTM accounting for the FedEx Freight investment, and a $263 million deferred income tax benefit on a FedEx Supply Chain basis difference. We are unable to predict the amount of additional calendar 2026 MTM adjustments for retirement plan accounting and adjustments related to MTM accounting for the FedEx Freight investment, as they are significantly affected by changes in interest rates and the financial markets, so such additional adjustments are not included in our calendar 2026 EPS and ETR forecasts. For this reason, a full reconciliation of our calendar 2026 EPS and ETR forecasts to the most directly comparable GAAP measures is impracticable. It is reasonably possible, however, that our additional calendar 2026 MTM adjustments for retirement plan accounting and MTM accounting for the FedEx Freight investment could have a material effect on our calendar 2026 consolidated financial results and ETR. The table included below titled “CY26 Diluted Earnings Per Share Forecast” outlines the effects of the items that are excluded from our calendar 2026 EPS forecast, other than the additional MTM adjustments for retirement plan accounting and adjustments related to MTM accounting for the FedEx Freight investment. Our non-GAAP financial measures are intended to supplement and should be read together with, and are not an alternative or substitute for, and should not be considered superior to, our reported financial results. Accordingly, users of our financial statements should not place undue reliance on these non-GAAP financial measures. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies’ non-GAAP financial measures having the same or similar names. 25 Calendar 2026 Forecast and Calendar 2025 Earnings Per Share (EPS) and Effective Tax Rate (ETR) Free cash flow and adjusted free cash flow Free cash flow and adjusted free cash flow are not defined under GAAP. Therefore, they should not be considered a substitute for income or cash flow data prepared in accordance with GAAP and may not be comparable to similarly titled measures used by other companies. It should not be inferred that our non-GAAP free cash flow and adjusted free cash flow measures represent amounts available for discretionary expenditures. We do not provide a reconciliation of 2029 free cash flow and adjusted free cash flow to the most directly comparable GAAP forecasts because we are unable to provide a meaningful or accurate calculation or estimation of reconciling items without unreasonable effort. These items are inherently uncertain and depend on various factors, many of which are beyond our control, and as such, any associated estimate and its impact on our GAAP financial measures could vary materially.
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Q3 CY26 Q3 CY25 Dollars in millions, except EPS Operating Income Operating Margin Income Taxes1 Net Income2 Diluted Earnings Per Share Operating Income Operating Margin Income Taxes1 Net Income2 Diluted Earnings Per Share GAAP measure $ 1,067 4.7% $ 134 $ 290 $ 1.21 $ 972 4.8% $ 269 $ 645 $ 2.73 Loss on Short-term investment3 — —% — 1,238 5.18 — —% — — — Gain on extinguishment of debt3 — —% (159) (468) (1.97) — —% — — — Restructuring, exit and other costs4 130 0.6% 294 (164) (0.68) 61 0.3% 13 48 0.20 Non-GAAP measure $ 1,197 5.3% $ 269 $ 896 $ 3.74 $ 1,033 5.1% $ 282 $ 693 $ 2.93 GAAP to non-GAAP reconciliations FedEx Corporation 1,2,3,4 See “Footnotes for Non-GAAP Reconciliation Slides” below for details. Note: tables may not sum to totals due to rounding. 26
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GAAP to non-GAAP reconciliations Note: tables may not sum to totals due to rounding. Express U.S Domestic Segment Q3 CY26 Q3 CY25 Dollars in millions Operating Income Operating Margin Operating Income Operating Margin GAAP measure $ 946 6.4% $ 884 6.6% Restructuring, exit and other Costs4 26 0.2% 21 0.2% Non-GAAP measure $ 972 6.6% $ 905 6.8% Q3 CY26 Q3 CY25 Dollars in millions Operating Income Operating Margin Operating Income Operating Margin GAAP measure $ 220 2.9% $ 192 3.0% Restructuring, exit and other Costs 4 77 1.0% 4 0.1% Non-GAAP measure $ 297 3.9% $ 196 3.1% Express International Segment 274 See “Footnotes for Non-GAAP Reconciliation Slides” below for details
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Full Y ear CY26 Cash Movements Cash provided by operating activities (GAAP) $ 9,365 - Capital expenditures (3,945) + Proceeds from asset dispositions 60 Free cash flow (non-GAAP) $5,480 + Voluntary contributions to tax qualified U.S Domestic pension plans 475 + IEEPA tariff refunds due to customers (2,000) Adjusted free cash flow (non-GAAP) $ 3,955 4 GAAP to non-GAAP reconciliations FedEx Corporation CY26 Adjusted Free Cash flow reconciliation Note: tables may not sum to totals due to rounding. 28
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CY26 Outlook Dollars in millions, except EPS Adjustments Diluted Earnings per Share Diluted earnings per share from continued operations (GAAP measure) $35.30 to $35.90 Restructuring, exit, and other cost 579 Gain on short term investments (3,254) MTM adjustment for retirement plan accounting (788) Gain on extinguishment of debt (627) Total adjustments $ (4,090) Income tax effect1 (50) Net of tax effect $ (4,140) (17.30) Diluted earnings per share with adjustments (non-GAAP)4 $18.00 to $18.60 GAAP to non-GAAP reconciliations CY26 Diluted Earnings Per Share Forecast 1,4 See “Footnotes for Non-GAAP Reconciliation Slides” below for details. Note: tables may not sum to totals due to rounding. 29
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CY25 Actuals Dollars in millions, except EPS Adjustments Diluted Earnings per Share GAAP measure $14.62 Business optimization costs4 1.11 Fiscal year change costs4 0.05 Aircraft Impairment charges4 0.07 International regulatory matter & legacy FedEx Ground legal matter 0.31 MTM retirement plans accounting adjustment3 (1.33) Total Adjustment 0.21 Diluted earnings per share with adjustments (non-GAAP) $14.83 GAAP to non-GAAP reconciliations CY25 Diluted Earnings Per Share 30 CY25 ActualsDollars in millions, except EPS Operating income (GAAP measure) $ 4,554 Business optimization costs4 345 Aircraft impairment charges4 21 International regulatory and legacy FedEx Ground legal matter 76 Fiscal year change cost4 14 Total adjustments 456 Operating income (Non-GAAP measure) $ 5,010 3,4 See “Footnotes for Non-GAAP Reconciliation Slides” below for details
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Footnotes for non-GAAP reconciliation slides 1 - Income taxes are based on the company’s approximate statutory tax rates applicable to each transaction. FedEx Corporation th ree months ended September 30, 2026, Income Taxes for “Restructuring, exit and other costs” includes a $263 million deferred income tax benefit on a FedEx Supply Chain basis diffe rence. This benefit is also included in the “Income tax effect” line item above. 2 - Effect of “total other (expense) income” on net income amount not shown. 3 - These expenses were recognized at Corporate, other, and eliminations. 4 - These expenses were recognized at Express U.S. Segment, and Corporate, other, and eliminations. 31