Recent News
FedEx hosted a 2026 Investor Day in February focused on network optimization and multi-year operating-income targets; the company emphasized strategic initiatives to boost operating income and outlined transformation priorities. A scheduled service interruption occurred on February 16, 2026, affecting some API and shipping services. The company published updates on 2026 surcharge and fee changes for package services and regulatory alerts relevant to cross-border shipments, and promoted new B2B digital capabilities in mid-February.
Technical Analysis
ADX / DI+ / DI-: ADX at 38.06 indicates a strong trend; DI+ falling to 18.77 while DI- rises to 26.10 signals the directional bias favors sellers, increasing downside risk versus the current valuation.
MACD: MACD sits at 0.83 below its signal line of 5.39 with the MACD trend decreasing, a bearish momentum profile that argues the recent upside lacks sustaining momentum unless MACD crosses above its signal.
MRO: MRO at 20.98 (positive) indicates price sits above the internal target and therefore carries a higher likelihood of downward mean reversion, which would pressure the stock relative to its fair-valued assessment.
RSI and Momentum: RSI at 61.81 and trending down points to cooling bullish momentum; the combination of a declining RSI and falling short-term EMAs favors a pullback scenario near-term.
Price vs. Moving Averages and Bands: Close at $356.11 trades below the 20-day average ($363.28) and just above the 50-day average ($349.05), while remaining well above the 200-day average ($270.27). Price sits inside the 1x Bollinger band range (lower $348.76–upper $377.80), placing current action nearer short-term support than breakout territory.
Fundamental Analysis
Profitability: Operating (EBIT) margin equals 6.91%, up 18.37% QoQ and up 10.11% YoY; that margin sits below the industry peer mean (8.39%) and industry peer median (8.79%) but above the industry peer low (−2.86%). The improvement QoQ and YoY reflects profitable leverage from recent cost actions tied to the company’s transformation program.
Earnings and Guidance Signal: Reported EPS of $4.82 versus an estimate of $4.11 produced an EPS beat of $0.71, a positive surprise of 17.28%, supporting the narrative of improving underlying earnings power ahead of the next report date.
Revenue and Cash Flow: Total revenue at $23,469,000,000 accompanies revenue growth (reported value) of 5.51%, while reported free cash flow stands at $1,194,000,000 with a free cash flow yield of 1.96% and free-cash growth of 9.24%. Operating cash flow equals $1,951,000,000 and cash conversion metrics (cash conversion cycle ~26.13 days) reflect generally efficient working-capital management.
Leverage and Coverage: Total debt $37,766,000,000 produces debt-to-equity of 1.342 (134.21%) and debt-to-EBITDA of 14.04; interest-coverage at 16.89x remains strong, implying earnings comfortably cover interest expense despite elevated nominal leverage levels.
Returns: Return on equity registers 3.40% and return on assets 1.08%, both improving QoQ and YoY but remaining modest relative to typical high-return businesses; these returns reflect capital-intensive network operations and ongoing investment in fleet and network optimization.
Valuation: Price-to-earnings sits at 53.73x with a forward P/E of 47.12x; price-to-book equals 2.16x and enterprise multiple rounds to 34.23x. WMDST values the stock as fair-valued. Relative to industry peer inputs, the P/E sits below the industry peer mean but above the industry peer median, and the price-to-book rests below the industry peer mean—together indicating valuation mixes premium for future cash-flow improvements and room for re-rating depending on transformation execution.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-11-30 |
| REPORT DATE: | 2025-12-18 |
| NEXT REPORT DATE: | 2026-03-19 |
| CASH FLOW | Begin Period Cash Flow | $ 6.2 B |
| Operating Cash Flow | $ 2.0 B | |
| Capital Expenditures | $ -757.00 M | |
| Change In Working Capital | $ -1.18 B | |
| Dividends Paid | $ -342.00 M | |
| Cash Flow Delta | $ 404.0 M | |
| End Period Cash Flow | $ 6.6 B | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 23.5 B | |
| Forward Revenue | $ 7.9 B | |
| COSTS | ||
| Cost Of Revenue | $ 18.3 B | |
| Depreciation | $ 1.1 B | |
| Depreciation and Amortization | $ 1.1 B | |
| Research and Development | — | |
| Total Operating Expenses | $ 21.8 B | |
| PROFITABILITY | ||
| Gross Profit | $ 5.1 B | |
| EBITDA | $ 2.7 B | |
| EBIT | $ 1.6 B | |
| Operating Income | $ 1.6 B | |
| Interest Income | $ -135.00 M | |
| Interest Expense | — | |
| Net Interest Income | $ -135.00 M | |
| Income Before Tax | $ 1.3 B | |
| Tax Provision | $ 333.0 M | |
| Tax Rate | 25.8 % | |
| Net Income | $ 956.0 M | |
| Net Income From Continuing Operations | $ 956.0 M | |
| EARNINGS | ||
| EPS Estimate | $ 4.11 | |
| EPS Actual | $ 4.82 | |
| EPS Difference | $ 0.71 | |
| EPS Surprise | 17.275 % | |
| Forward EPS | $ 5.46 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 89.2 B | |
| Intangible Assets | $ 6.6 B | |
| Net Tangible Assets | $ 21.5 B | |
| Total Current Assets | $ 20.7 B | |
| Cash and Short-Term Investments | $ 6.6 B | |
| Cash | $ 6.6 B | |
| Net Receivables | $ 12.2 B | |
| Inventory | $ 631.0 M | |
| Long-Term Investments | $ 4.4 B | |
| LIABILITIES | ||
| Accounts Payable | $ 4.7 B | |
| Short-Term Debt | $ 901.0 M | |
| Total Current Liabilities | $ 16.2 B | |
| Net Debt | $ 14.6 B | |
| Total Debt | $ 37.8 B | |
| Total Liabilities | $ 61.0 B | |
| EQUITY | ||
| Total Equity | $ 28.1 B | |
| Retained Earnings | $ 42.2 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 119.74 | |
| Shares Outstanding | 235.000 M | |
| Revenue Per-Share | $ 99.87 | |
| VALUATION | Market Capitalization | $ 60.9 B |
| Enterprise Value | $ 92.1 B | |
| Enterprise Multiple | 34.234 | |
| Enterprise Multiple QoQ | -4.1 % | |
| Enterprise Multiple YoY | 32.631 % | |
| Enterprise Multiple IPRWA | high: 115.89 mean: 50.808 FDX: 34.234 median: 29.766 low: 2.046 |
|
| EV/R | 3.922 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 3.169 | |
| Asset To Liability | 1.461 | |
| Debt To Capital | 0.573 | |
| Debt To Assets | 0.423 | |
| Debt To Assets QoQ | -1.222 % | |
| Debt To Assets YoY | 6010.823 % | |
| Debt To Assets IPRWA | high: 0.794 FDX: 0.423 median: 0.391 mean: 0.337 low: 0.033 |
|
| Debt To Equity | 1.342 | |
| Debt To Equity QoQ | -1.676 % | |
| Debt To Equity YoY | 5899.464 % | |
| Debt To Equity IPRWA | high: 2.844 median: 1.762 mean: 1.375 FDX: 1.342 low: 0.043 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 2.163 | |
| Price To Book QoQ | 12.103 % | |
| Price To Book YoY | -15.148 % | |
| Price To Book IPRWA | high: 10.221 mean: 6.168 median: 5.223 FDX: 2.163 low: 0.232 |
|
| Price To Earnings (P/E) | 53.73 | |
| Price To Earnings QoQ | -9.372 % | |
| Price To Earnings YoY | -22.289 % | |
| Price To Earnings IPRWA | high: 219.55 mean: 82.003 FDX: 53.73 median: 38.512 low: -140.344 |
|
| PE/G Ratio | 2.079 | |
| Price To Sales (P/S) | 2.593 | |
| Price To Sales QoQ | 7.663 % | |
| Price To Sales YoY | -15.536 % | |
| Price To Sales IPRWA | high: 8.459 mean: 4.538 median: 3.462 FDX: 2.593 low: 0.815 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 47.12 | |
| Forward PE/G | 1.823 | |
| Forward P/S | 7.985 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 4.519 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.264 | |
| Asset Turnover Ratio QoQ | 4.586 % | |
| Asset Turnover Ratio YoY | 3.586 % | |
| Asset Turnover Ratio IPRWA | high: 0.761 mean: 0.41 median: 0.339 FDX: 0.264 low: 0.008 |
|
| Receivables Turnover | 1.983 | |
| Receivables Turnover Ratio QoQ | 1.982 % | |
| Receivables Turnover Ratio YoY | -5.013 % | |
| Receivables Turnover Ratio IPRWA | high: 2.589 median: 2.312 mean: 2.05 FDX: 1.983 low: 1.171 |
|
| Inventory Turnover | 29.696 | |
| Inventory Turnover Ratio QoQ | 2.031 % | |
| Inventory Turnover Ratio YoY | 5.116 % | |
| Inventory Turnover Ratio IPRWA | FDX: 29.696 high: 16.502 mean: 5.175 median: 4.681 low: 0.406 |
|
| Days Sales Outstanding (DSO) | 46.025 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 26.132 | |
| Cash Conversion Cycle Days QoQ | -9.379 % | |
| Cash Conversion Cycle Days YoY | -2.26 % | |
| Cash Conversion Cycle Days IPRWA | high: 116.203 FDX: 26.132 median: 25.694 mean: 24.974 low: -61.123 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 5.287 | |
| CapEx To Revenue | -0.032 | |
| CapEx To Depreciation | -0.709 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 48.4 B | |
| Net Invested Capital | $ 49.3 B | |
| Invested Capital | $ 49.3 B | |
| Net Tangible Assets | $ 21.5 B | |
| Net Working Capital | $ 4.4 B | |
| LIQUIDITY | ||
| Cash Ratio | 0.405 | |
| Current Ratio | 1.274 | |
| Current Ratio QoQ | 2.224 % | |
| Current Ratio YoY | 3.449 % | |
| Current Ratio IPRWA | high: 1.812 FDX: 1.274 mean: 1.25 median: 1.219 low: 0.829 |
|
| Quick Ratio | 1.235 | |
| Quick Ratio QoQ | 2.295 % | |
| Quick Ratio YoY | 3.924 % | |
| Quick Ratio IPRWA | high: 21.528 FDX: 1.235 median: 1.172 mean: 1.111 low: 0.57 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 14.045 | |
| Cost Of Debt | 0.188 % | |
| Interest Coverage Ratio | 16.885 | |
| Interest Coverage Ratio QoQ | 24.884 % | |
| Interest Coverage Ratio YoY | 17.634 % | |
| Interest Coverage Ratio IPRWA | high: 24.425 FDX: 16.885 median: 9.917 mean: 9.594 low: -7.955 |
|
| Operating Cash Flow Ratio | 0.111 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 23.104 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | 2.795 | |
| Dividend Payout Ratio | 0.358 | |
| Dividend Rate | $ 1.46 | |
| Dividend Yield | 0.006 | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 0.865 % | |
| Revenue Growth | 5.507 % | |
| Revenue Growth QoQ | 4999.074 % | |
| Revenue Growth YoY | 206.285 % | |
| Revenue Growth IPRWA | high: 18.902 % mean: 5.681 % FDX: 5.507 % median: 3.299 % low: -7.198 % |
|
| Earnings Growth | 25.849 % | |
| Earnings Growth QoQ | -170.046 % | |
| Earnings Growth YoY | 106.792 % | |
| Earnings Growth IPRWA | high: 88.889 % FDX: 25.849 % mean: 10.703 % median: 7.955 % low: -75.342 % |
|
| MARGINS | ||
| Gross Margin | 21.867 % | |
| Gross Margin QoQ | 3.625 % | |
| Gross Margin YoY | 4.903 % | |
| Gross Margin IPRWA | high: 30.222 % FDX: 21.867 % median: 19.987 % mean: 16.158 % low: 5.091 % |
|
| EBIT Margin | 6.907 % | |
| EBIT Margin QoQ | 18.372 % | |
| EBIT Margin YoY | 10.107 % | |
| EBIT Margin IPRWA | high: 10.777 % median: 8.786 % mean: 8.393 % FDX: 6.907 % low: -2.859 % |
|
| Return On Sales (ROS) | 6.907 % | |
| Return On Sales QoQ | 18.372 % | |
| Return On Sales YoY | 10.107 % | |
| Return On Sales IPRWA | high: 10.519 % median: 9.099 % mean: 8.444 % FDX: 6.907 % low: -7.05 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 1.2 B | |
| Free Cash Flow Yield | 1.962 % | |
| Free Cash Flow Yield QoQ | -3.824 % | |
| Free Cash Flow Yield YoY | 164.777 % | |
| Free Cash Flow Yield IPRWA | high: 4.561 % median: 3.051 % mean: 2.223 % FDX: 1.962 % low: -3.721 % |
|
| Free Cash Growth | 9.241 % | |
| Free Cash Growth QoQ | 105.675 % | |
| Free Cash Growth YoY | -51.486 % | |
| Free Cash Growth IPRWA | high: 585.318 % median: 42.073 % FDX: 9.241 % mean: 8.718 % low: -504.706 % |
|
| Free Cash To Net Income | 1.249 | |
| Cash Flow Margin | 7.648 % | |
| Cash Flow To Earnings | 1.878 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.03 | |
| Return On Assets (ROA) | 1.077 % | |
| Return On Assets QoQ | 15.064 % | |
| Return On Assets YoY | 25.087 % | |
| Return On Assets IPRWA | high: 4.15 % median: 2.479 % mean: 2.229 % FDX: 1.077 % low: -3.396 % |
|
| Return On Capital Employed (ROCE) | 2.222 % | |
| Return On Equity (ROE) | 0.034 | |
| Return On Equity QoQ | 14.493 % | |
| Return On Equity YoY | 21.321 % | |
| Return On Equity IPRWA | high: 0.11 median: 0.085 mean: 0.078 FDX: 0.034 low: -0.25 |
|
| DuPont ROE | 3.419 % | |
| Return On Invested Capital (ROIC) | 2.438 % | |
| Return On Invested Capital QoQ | 26.452 % | |
| Return On Invested Capital YoY | -110.397 % | |
| Return On Invested Capital IPRWA | high: 8.168 % median: 4.936 % mean: 4.436 % FDX: 2.438 % low: -1.948 % |
|