Earnings release
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- more - 1 FedEx Reports Strong Third Quarter Results Completed $2 Billion of Share Repurchases in June-September Period Raises Full-year Calendar 2026 Earnings Outlook MEMPHIS, Tenn., October 28, 2026 ... FedEx Corp. (NYSE: FDX) today reported the following consolidated results for the quarter ended September 30 (adjusted measures exclude the items listed below): Three Months Ended (Continuing Operations) September 30, 2026 September 30, 2025 As Reported (GAAP) Adjusted (non-GAAP) As Reported (GAAP) Adjusted (non-GAAP) Revenue $22.9 billion $22.9 billion $20.4 billion $20.4 billion Operating income $1.07 billion $1.20 billion $0.97 billion $1.03 billion Operating margin 4.7% 5.3% 4.8% 5.1% Net income $0.29 billion $0.90 billion $0.65 billion $0.69 billion Diluted EPS $1.21 $3.74 $2.73 $2.93 This year’s and last year’s quarterly consolidated results have been adjusted for: Three Months Ended Impact per diluted share September 30, 2026 September 30, 2025 Loss on short-term investment $5.18 $ — Gain on extinguishment of debt (1.97) — Restructuring, exit and other costs (0.68) 0.20 Consolidated operating results improved in the third quarter, driven by increased package base yields, higher package volumes, and continued structural cost reductions from business optimization initiatives. These factors were partially offset by increased purchased transportation rates, higher wage rates and variable compensation expenses, and the financial impact of global trade policy changes. “As our strong operating results and adjusted free cash flow demonstrate, FedEx is winning across high-value market segments while we optimize our network, driving an increase to our full-year outlook,” said Raj Subramaniam, FedEx Corp. president and chief executive officer. “As we advance our transformation, we remain committed to disciplined operational execution to reduce our cost-to-serve
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- more - 2 while focusing on profitable growth. We have the right strategy in place to continue to be the world’s premier B2B parcel and air freight provider, leverage our digital insights to unlock new markets, and use disciplined capital allocation to create additional stockholder value.” Express U.S. Domestic segment operating income increased during the quarter, driven by higher package yields, increased package volume, improved service mix, and continued cost savings from transformation initiatives. These factors were partially offset by increased purchased transportation rates and higher salaries and benefits expenses. Express International segment operating results increased during the quarter, primarily due to increased base yields, higher international export volume, and increased freight weight. These factors were partially offset by higher wage rates, increased purchased transportation rates, and the financial impact of global trade policy changes. FedEx Freight Spin-Off FedEx completed the spin-off of FedEx Freight on June 1, 2026, retaining a 19.9% ownership interest in FedEx Freight. FedEx recognized a loss of $1.2 billion during the quarter within “Gain/(loss) on short-term investment” on the income statement. The carrying value of this equity security totaled $3.3 billion at September 30, 2026 and is recorded within “Short-term investment” in the condensed consolidated balance sheets. FedEx utilized cash proceeds from the approximately $4.1 billion dividend received from FedEx Freight following the spin-off, as well as cash on hand, to fund cash tender offers for approximately $4.9 billion aggregate principal amount of outstanding debt securities, resulting in a non-GAAP , pre-tax gain of $627 million. FedEx Supply Chain Sale On October 1, 2026, FedEx completed the sale of its subsidiary FedEx Supply Chain to CMA CGM Group for a purchase price of approximately $1.4 billion. The transaction represents another important step in the ongoing transformation of FedEx, advancing its strategy to simplify its portfolio, sharpen its focus, and concentrate resources on the areas where the company is best positioned to create long-term value.
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- more - 3 2027 Rate Increases As previously announced, effective January 4, 2027, FedEx parcel shipping rates will increase by an average of 5.9%. Details related to these and additional changes to rates and surcharges are available at fedex.com/en-us/shipping/rate- changes.html. Cash and Capital Returns Cash on-hand as of September 30, 2026 was $8 billion, which included approximately $2.7 billion in IEEPA tariff refunds held for refund to customers. FedEx completed $2.0 billion in stock repurchases via open market and accelerated share repurchase transactions in June through September. Approximately 6.3 million shares were repurchased, with the decrease in outstanding shares benefiting third quarter results by $0.02 per diluted share. FedEx will continue to be opportunistic with stock repurchases. As of September 30, 2026, $4.3 billion remained available for repurchases under the company’s 2026 stock repurchase authorization. “Our solid third quarter results and higher 2026 financial outlook reflect the focused execution of our strategy, demonstrating momentum toward our 2029 financial targets,” said Claude Russ, FedEx Corp. enterprise vice president and interim chief financial officer. “Our decision to repurchase $2 billion of FedEx stock displays our conviction in achieving our 2029 financial targets and our commitment to deploy our strong free cash flow to increase stockholder returns.”
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- more - 4 Outlook For calendar year 2026, FedEx is revising its forecast as follows: Financial Metric Forecast Value(1) Additional Details & Exclusions Revenue Growth ~12% Y o Y Compared to the prior forecast of ~11%. Diluted EPS (Continuing Operations) $35.30 to $35.90 Compared to the prior forecast of $16.55 to $17.75 per diluted share, which excluded impacts related to MTM accounting for the FedEx Freight investment and gain on extinguishment of debt. Prior to additional CY26 MTM adjustments for retirement plan accounting. Adjusted Diluted EPS (Continuing Operations) $18.00 to $18.60 Compared to the prior forecast of $16.90 to $18.10 per diluted share. Also excludes MTM adjustments for retirement plan accounting, adjustments related to MTM accounting for the FedEx Freight investment, gain on extinguishment of debt, and restructuring, exit and other costs. Effective Tax Rate (ETR) ~22.5% Compared to the prior forecast of ~23%. Prior to MTM adjustments for retirement plan accounting, adjustments related to MTM accounting for the FedEx Freight investment, and a $263 million deferred income tax benefit on FedEx Supply Chain basis difference. Pension Contributions $475 million Unchanged from the prior forecast. Capital Spending $3.9 billion Unchanged from the prior forecast. Prioritizes investments in network optimization and efficiency improvement, including fleet and facility modernization and automation. (1) As of October 28, 2026 These forecasts assume FedEx’s current economic forecast and fuel price expectations, and no additional adverse economic, geopolitical, or international trade-related developments. FedEx’s ETR and EPS forecasts are based on current law and related regulations and guidance.
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- more - 5 Corporate Overview FedEx Corp. (NYSE: FDX) provides customers and businesses worldwide with a broad portfolio of transportation, e-commerce and business services. With annual revenue of $90 billion, the company offers integrated business solutions utilizing its flexible, efficient, and intelligent global network. Consistently ranked among the world's most admired and trusted employers, FedEx inspires its more than 450,000 employees to remain focused on safety, the highest ethical and professional standards and the needs of their customers and communities. FedEx is committed to connecting people and possibilities around the world responsibly and resourcefully, with a goal to achieve carbon-neutral operations by 2040. To learn more, please visit fedex.com/about. Additional information and operating data are contained in the company’s annual report, Form 10-K, Form 10-Qs, Form 8-Ks and Statistical Books. These materials, as well as a webcast of the earnings release conference call to be held at 5:30 p.m. EDT on October 28, are available on the company’s website at investors.fedex.com. A replay of the conference call webcast will be posted on our website following the call. The Investor Relations page of our website, investors.fedex.com, contains a significant amount of information about FedEx, including our SEC filings and financial and other information for investors. The information that we post on our Investor Relations website could be deemed to be material information. We encourage investors, the media and others interested in the company to visit this website from time to time, as information is updated and new information is posted. Certain statements in this press release 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 financial 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 expressions. 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 expressed 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, including Network 2.0 and Tricolor, effectively
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- more - 6 respond to changes in market dynamics, and achieve the anticipated benefits of such strategies and actions; our ability to achieve our cost reduction initiatives 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 compliance 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 ongoing 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 related 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, leverage, 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 outbreak 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
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- more - 7 of future stock repurchases; and other factors which can be found in FedEx Corp.’s and its subsidiaries’ 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 information, future events, or otherwise. Media Contact: Caitlin Maier 901-434-8100 mediarelations@fedex.com Investor Relations Contact: Jeni Hollander 901-818-7200 ir@fedex.com
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8 RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES Results for the three months ended September 30, 2026 and 2025 The company reports its financial results in accordance with accounting principles generally accepted in the United States (“GAAP” or “reported”). We have supplemented the reporting of our financial information determined in accordance with GAAP with certain non-GAAP (or “adjusted”) financial measures, including our adjusted consolidated operating income and margin, income taxes, net income and diluted earnings per share, adjusted Express U.S. Domestic segment operating income and margin, and adjusted Express International segment operating income and margin for the 3-months ended September 30, 2026 and 2025. These financial measures are based on continuing operations and have been adjusted to exclude the effects of the following items (as applicable): • Gain/Loss on retained investment in FedEx Freight: On June 1, 2026, FedEx completed the spin-off of FedEx Freight into an independent, publicly traded company (the “Spin-Off”). Following the Spin-Off, we retained a 19.9% ownership interest in FedEx Freight, which is accounted for as an equity security and recorded at fair value. Changes in fair value are recognized through net income. • Gain on extinguishment of debt: On July 14, 2026, FedEx utilized the cash proceeds from the dividend received from FedEx Freight in connection with the Spin-Off, as well as cash on hand, to complete cash tender offers for certain outstanding debt securities. The gain on partial extinguishment is net of a proportional amount of the related unamortized discount, premium and debt issuance costs attributable to the repurchased securities. • Restructuring, exit and other costs incurred: These costs relate to the multi- year restructuring, business realignment, and exit activities designed to improve operating efficiency, reduce costs, or optimize FedEx’s business portfolio. These costs also include those related to the Spin-Off and FedEx’s change in fiscal year end from May 31 to December 31. These costs were primarily related to severance, incentive payments to contracted service providers, and professional services. ◦ Deferred income tax benefit on FedEx Supply Chain basis difference: A $263 million deferred income tax benefit has been recorded for the difference in the U.S. income tax and US GAAP book basis with respect to the FedEx Supply Chain business that was classified to held for sale in the third quarter. The income tax effect of these costs is calculated based upon the tax laws and statutory income tax rates applicable in the tax jurisdiction(s) of the underlying non-GAAP adjustment. The impact of these non-GAAP items on the company's
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- more - 9 effective tax rate represents the difference in the effective tax rate calculated with and without the non-GAAP adjustment. We believe these adjusted financial measures facilitate analysis and comparisons of our ongoing business operations because they exclude items that may not be indicative of, or are unrelated to, the company's and our business segments' core operating performance, and may assist investors with comparisons to prior periods and assessing trends in our underlying businesses. These adjustments are consistent with how management views our businesses. Management uses these non-GAAP financial measures in making financial, operating, and planning decisions and evaluating the company's and each business segments' ongoing performance. 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. As required by SEC rules, the tables below present a reconciliation of our presented non-GAAP financial measures to the most directly comparable GAAP measures. Calendar 2026 Earnings Per Share and Effective Tax Rate Forecasts Our calendar 2026 EPS forecast is a non-GAAP financial measure because it excludes 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 MTM adjustments for retirement plan accounting, MTM accounting for the FedEx Freight investment, and a $263 million deferred income tax benefit on FedEx Supply Chain basis difference. We have provided these non-GAAP financial measures for the same reasons that were outlined above for historical non-GAAP measures. The adjustments reflected in our calendar 2026 EPS and ETR forecasts are excluded for the same reasons described above for the corresponding historical non-GAAP measures. We are unable to predict the amount of the additional MTM adjustments for retirement plan accounting and MTM accounting for the FedEx Freight investment, as they are significantly affected by changes in interest rates and the financial markets, so such 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
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10 forecasts to the most directly comparable GAAP measures is impracticable. It is reasonably possible, however, that our 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 below titled “Calendar 2026 Diluted Earnings Per Share Forecast” outlines the effects of the items that are excluded from our calendar 2026 EPS forecast, other than additional MTM adjustments for retirement plan accounting and MTM accounting for the FedEx Freight investment. THREE MONTHS ENDED SEPTEMBER 30, 2026 FedEx Corporation Diluted Earnings Per Share Operating Income Taxes(1) Net Income(2) In millions, except per share amounts Income Margin GAAP measure $ 1,067 4.7 % $ 134 $ 290 $ 1.21 Loss on short-term investment(3) — — % — 1,238 5.18 Gain on extinguishment of debt(3) — — % (159) (468) (1.97) Restructuring, exit and other costs(4) 130 0.6 % 294 (164) (0.68) Non-GAAP measure $ 1,197 5.3 % $ 269 $ 896 $ 3.74 Express U.S. Domestic Segment Operating In millions Income Margin GAAP measure $ 946 6.4 % Restructuring, exit and other costs 26 0.2 % Non-GAAP measure $ 972 6.6 % Express International Segment Operating In millions Income Margin GAAP measure $ 220 2.9 % Restructuring, exit and other costs 77 1.0 % Non-GAAP measure $ 297 3.9 %
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- more - 11 THREE MONTHS ENDED SEPTEMBER 30, 2025 FedEx Corporation Diluted Earnings Per Share Operating Income Taxes(1) Net Income(2) In millions, except per share amounts Income Margin GAAP measure $ 972 4.8 % $ 269 $ 645 $ 2.73 Restructuring, exit and other costs(4) 61 0.3 % 13 48 0.20 Non-GAAP measure $ 1,033 5.1 % $ 282 $ 693 $ 2.93 Express U.S. Domestic Segment Operating In millions Income Margin GAAP measure $ 884 6.6 % Restructuring, exit and other costs 21 0.2 % Non-GAAP measure $ 905 6.8 % Express International Segment Operating In millions Income Margin GAAP measure $ 192 3.0 % Restructuring, exit and other costs 4 0.1 % Non-GAAP measure $ 196 3.1 %
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12 CALENDAR 2026 DILUTED EARNINGS PER SHARE FORECAST Diluted Earnings Per Share In millions, except per share amounts Adjustments Diluted earnings per share from continuing operations (GAAP)(5) $35.30 to $35.90 Restructuring, exit and other costs $579 Gain on short-term investment (3,254) MTM adjustment for retirement plan accounting (788) Gain on extinguishment of debt (627) Total adjustments $(4,090) Income tax effect(1) (50) Net of tax effect $(4,140) (17.30) Diluted earnings per share with adjustments (non-GAAP)(5) $18.00 to $18.60 Notes: (1) Income taxes are based on the approximate statutory tax rates applicable to each transaction. FedEx Corporation three 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 difference. This benefit is also included in the “Income tax effect” line item above. (2) Effect of “total other (expense) income” on net income from continuing operations is not shown. (3) These expenses were recognized at Corporate, other, and eliminations. (4) These expenses were recognized at Express U.S. Domestic, Express International, and Corporate, other, and eliminations. (5) Additional MTM adjustments for retirement plan accounting and adjustments related to MTM accounting for the FedEx Freight investment, which are impracticable to calculate at this time, are excluded.
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13 FEDEX CORPORA TION CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) Three Months Ended Nine Months Ended In millions, except per share amounts September 30, 2026 September 30, 2025 Percent Change September 30, 2026 September 30, 2025 Percent Change Revenue: Express U.S. Domestic segment $ 14,710 $ 13,392 10 $ 43,190 $ 38,636 12 Express International segment 7,465 6,363 17 21,371 18,509 15 Corporate, other, and eliminations(1) 680 677 — 2,012 2,059 (2) Total Revenue 22,855 20,432 12 66,573 59,204 12 Operating Expenses: Salaries and employee benefits 7,434 7,078 5 22,503 20,508 10 Purchased transportation 6,455 5,419 19 17,953 15,508 16 Rentals and landing fees 1,183 1,129 5 3,499 3,293 6 Fuel 1,270 774 64 3,434 2,257 52 Depreciation and amortization 967 972 (1) 2,949 2,912 1 Maintenance and repairs 794 784 1 2,264 2,218 2 Other, net 3,685 3,304 12 10,658 9,888 8 Total Operating Expenses 21,788 19,460 12 63,260 56,584 12 Operating income (loss): Express U.S. Domestic segment 946 884 7 3,205 2,646 21 Express International segment 220 192 15 447 326 37 Corporate, other, and eliminations(1) (99) (104) 5 (339) (352) 4 Total Operating Income 1,067 972 10 3,313 2,620 26 Other (Expense) Income: Gain/(loss) on short-term investment (1,238) — NM 3,254 — NM Interest, net (66) (125) (47) (304) (364) (16) Other, non-operating, net 661 67 887 1,583 545 191 Total Other (Expense) Income (643) (58) 1009 4,533 181 2405 Income Before Income Taxes 424 914 (54) 7,846 2,801 180 Provision for Income Taxes 134 269 (50) 763 706 8 Income from continuing operations 290 645 (55) 7,083 2,095 238 Income from discontinued operations, net of taxes — 275 NM 112 1,034 (89) Net Income $ 290 $ 920 (68) $ 7,195 $ 3,129 130 Continuing operations $ 1.21 $ 2.73 (56) $ 29.42 $ 8.76 236 Discontinued operations — 1.16 NM 0.47 4.32 (89) Diluted Earnings Per Share $ 1.21 $ 3.89 (69) $ 29.89 $ 13.08 129 Weighted Average Common and Common Equivalent Shares 239 237 1 240 239 1 Capital Expenditures $ 844 $ 587 44 $ 2,859 $ 2,720 5 (1) – Includes the FedEx Office, FedEx Supply Chain, and FedEx Dataworks operating segments.
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14 FEDEX CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) In millions, except share amounts September 30, 2026 December 31, 2025 ASSETS CURRENT ASSETS Cash and cash equivalents $ 7,961 $ 6,531 Receivables, less allowances 10,886 11,957 Short-term investment 3,254 — Prepaid expenses and other 2,256 1,361 Spare parts, supplies, and fuel, less allowances 646 615 Current assets of discontinued operations — 1,111 Total current assets 25,003 21,575 PROPERTY AND EQUIPMENT, NET 39,686 38,736 OTHER LONG-TERM ASSETS Operating lease right-of-use assets, net 14,407 14,715 Goodwill and other assets 11,329 10,448 Equity method investment 2,501 — Non-current assets of discontinued operations — 4,837 Total other long-term assets 28,237 30,000 TOTAL ASSETS $ 92,926 $ 90,311 LIABILITIES AND COMMON STOCKHOLDERS' INVESTMENT CURRENT LIABILITIES Accrued and other liabilities $ 9,651 $ 8,509 Accounts and notes payable 6,959 4,355 Accrued salaries and employee benefits 2,230 2,610 Current liabilities of discontinued operations — 711 Total current liabilities 18,840 16,185 LONG-TERM DEBT, LESS CURRENT PORTION 17,304 20,302 OTHER LONG-TERM LIABILITIES Operating lease liabilities 12,262 12,671 Self-insurance accruals 4,320 4,163 Deferred income taxes 3,011 3,486 Other liabilities 2,621 2,480 Non-current liabilities of discontinued operations — 1,743 Total other long-term liabilities 22,214 24,543 COMMITMENTS AND CONTINGENCIES COMMON STOCKHOLDERS' INVESTMENT Common stock, $0.10 par value, 800 million shares authorized 32 32 Additional paid-in capital 4,861 4,418 Retained earnings 49,677 43,110 Accumulated other comprehensive loss (1,766) (1,342) Treasury stock, at cost (18,236) (16,937) Total common stockholders' investment 34,568 29,281 TOTAL LIABILITIES AND COMMON STOCKHOLDERS' INVESTMENT $ 92,926 $ 90,311
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15 FEDEX CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Nine Months Ended In millions September 30, 2026 September 30, 2025 Operating Activities: Net income $ 7,195 $ 3,129 Adjustments to reconcile net income to cash provided by operating activities: Depreciation and amortization 3,142 3,215 Other noncash items, net 2,205 2,385 Gain on short-term investment (3,254) — Gain from early extinguishment of debt (627) — Changes in operating assets and liabilities, net (1,213) (2,091) Cash provided by operating activities 7,448 6,638 Investing Activities: Purchase of equity method investment (2,501) — Capital expenditures (3,045) (2,925) Purchase of investments (512) (149) Proceeds from sale of investments 438 88 Proceeds from asset dispositions and other investing activities, net 44 89 Cash used in investing activities (5,576) (2,897) Financing Activities: Proceeds from debt issuances 8,943 997 Principal payments on debt (7,142) (741) Proceeds from stock issuances 1,010 102 Dividends paid (979) (1,008) Purchases of common stock (2,000) (1,732) Distribution attributable to the Spin-Off (251) — Other, net (67) (31) Cash used in financing activities (486) (2,413) Effect of exchange rate changes on cash (56) 204 Net increase in cash and cash equivalents 1,330 1,532 Cash and cash equivalents from continuing operations at beginning of period 6,531 4,854 Cash and cash equivalents from discontinued operations at beginning of period 100 76 Cash and cash equivalents at end of period $ 7,961 $ 6,462 Note: The condensed consolidated statements of cash flows herein have not been recast to reflect discontinued operations for any periods presented.
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16 EXPRESS U.S. DOMESTIC SEGMENT CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) Three Months Ended Nine Months Ended In millions September 30, 2026 September 30, 2025 Percent Change September 30, 2026 September 30, 2025 Percent Change Revenue: U.S. Package: U.S. priority $ 3,142 $ 2,826 11 $ 9,121 $ 8,144 12 U.S. deferred 1,406 1,302 8 4,219 3,794 11 U.S. ground 9,545 8,748 9 28,086 25,338 11 Total package revenue 14,093 12,876 9 41,426 37,276 11 U.S. Freight 366 315 16 1,032 900 15 Other 251 201 25 732 460 59 Total revenue 14,710 13,392 10 43,190 38,636 12 Operating expenses: Salaries and employee benefits 4,624 4,471 3 14,200 12,914 10 Purchased transportation 4,473 3,778 18 12,372 10,718 15 Rentals and landing fees 687 674 2 2,041 1,979 3 Fuel 410 263 56 1,129 773 46 Depreciation and amortization 647 656 (1) 1,954 1,960 — Maintenance and repairs 529 498 6 1,500 1,405 7 Other, net 2,394 2,168 10 6,789 6,241 9 Total operating expenses 13,764 12,508 10 39,985 35,990 11 Operating income $ 946 $ 884 7 $ 3,205 $ 2,646 21 Operating margin 6.4 % 6.6 % (20) bp 7.4 % 6.8 % 60 bp
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17 EXPRESS U.S. DOMESTIC SEGMENT OPERATING STATISTICS (Unaudited) Three Months Ended Nine Months Ended In thousands, except yield amounts September 30, 2026 September 30, 2025 Percent Change September 30, 2026 September 30, 2025 Percent Change PACKAGE STATISTICS Avg. daily package volume (ADV)(1): U.S. priority 1,742 1,681 4 1,696 1,629 4 U.S. deferred 1,056 1,074 (2) 1,069 1,052 2 U.S. ground commercial 4,521 4,370 3 4,404 4,244 4 U.S. ground home delivery/economy 7,051 6,969 1 6,968 6,773 3 Total U.S. domestic ADV 14,370 14,094 2 14,137 13,698 3 Revenue per package (yield): U.S. priority $ 28.18 $ 26.27 7 $ 28.15 $ 26.17 8 U.S. deferred 20.81 18.96 10 20.66 18.88 9 U.S. ground 12.89 12.05 7 12.93 12.04 7 U.S. domestic composite $ 15.32 $ 14.28 7 $ 15.34 $ 14.25 8 FREIGHT STATISTICS Average daily freight pounds: U.S. freight 2,426 2,202 10 2,275 2,208 3 Revenue per pound (yield): U.S. freight $ 2.36 $ 2.23 6 $ 2.38 $ 2.13 12 Operating days 64 64 — 191 191 — (1) – ADV is calculated on a 5-day-per-week basis.
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18 EXPRESS INTERNATIONAL SEGMENT CONDENSED STATEMENTS OF INCOME (Unaudited) Three Months Ended Nine Months Ended In millions September 30, 2026 September 30, 2025 Percent Change September 30, 2026 September 30, 2025 Percent Change Revenue: Intl Package: International priority $ 2,677 $ 2,325 15 $ 7,744 $ 6,607 17 International economy 1,680 1,403 20 4,747 4,201 13 International domestic(1) 1,156 1,166 (1) 3,478 3,354 4 Total package revenue 5,513 4,894 13 15,969 14,162 13 Freight: International priority 784 588 33 2,183 1,752 25 International economy 658 538 22 1,835 1,549 18 Total freight revenue 1,442 1,126 28 4,018 3,301 22 Other 510 343 49 1,384 1,046 32 Total revenue 7,465 6,363 17 21,371 18,509 15 Operating expenses: Salaries and employee benefits 2,408 2,190 10 6,988 6,321 11 Purchased transportation 1,893 1,588 19 5,380 4,635 16 Rentals and landing fees 390 356 10 1,143 1,020 12 Fuel 859 510 68 2,303 1,482 55 Depreciation and amortization 294 292 1 904 877 3 Maintenance and repairs 236 261 (10) 678 733 (8) Other, net 1,165 974 20 3,528 3,115 13 Total operating expenses 7,245 6,171 17 20,924 18,183 15 Operating income $ 220 $ 192 15 $ 447 $ 326 37 Operating margin 2.9 % 3.0 % (10) bp 2.1 % 1.8 % 30 bp (1) – International Domestic revenue relates to international intra-country operations.
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19 EXPRESS INTERNATIONAL SEGMENT OPERATING STATISTICS (Unaudited) Three Months Ended Nine Months Ended In thousands, except yield amounts September 30, 2026 September 30, 2025 Percent Change September 30, 2026 September 30, 2025 Percent Change PACKAGE STATISTICS Avg. daily package volume (ADV)(1): International priority 563 569 (1) 566 555 2 International economy 625 532 17 599 538 11 International domestic(2) 1,640 1,846 (11) 1,679 1,848 (9) Total International ADV 2,828 2,947 (4) 2,844 2,941 (3) Revenue per package (yield): International priority $ 74.27 $ 63.87 16 $ 71.62 $ 62.30 15 International economy 41.98 41.23 2 41.46 40.87 1 International domestic(2) 11.02 9.87 12 10.85 9.50 14 Composite package yield $ 30.46 $ 25.96 17 $ 29.39 $ 25.21 17 FREIGHT STATISTICS Average daily freight pounds: International priority 5,472 4,782 14 5,241 4,658 13 International economy 13,333 11,514 16 12,772 11,424 12 Total average daily freight pounds 18,805 16,296 15 18,013 16,082 12 Revenue per pound (yield): International priority $ 2.24 $ 1.92 17 $ 2.18 $ 1.97 11 International economy 0.77 0.73 5 0.75 0.71 6 Composite freight yield $ 1.20 $ 1.08 11 $ 1.17 $ 1.08 8 Operating days 64 64 — 191 191 — (1) – ADV is calculated on a 5-day-per-week basis. (2) – International Domestic Statistics relate to international intra-country operations.