FedEx Corp. 4QFY26, Initial Thoughts

Research evidence excerpt

FedEx Corp. 4QFY26, Initial Thoughts

Equity Research

North America Transportation

23 June 2026

FedEx Corp.

4QFY26, Initial Thoughts

First LookCore Federal Express results and guidance for FY2026 were a

touch below our bullish forecasts, but volume and yield

growth remain robust, likely supporting a stronger discussion FDX OVERWEIGHT North America

Transportationof revenue trends on tonight’s earnings call and driving a POSITIVE

Price Target USD 425.00

more favorable long-term margin outlook. Price (23-Jun-26) USD 317.24

Potential Upside/Downside +34.0%

Source: Bloomberg, Barclays Research

Fiscal fourth quarter results were stronger for the recently spun FedEx Freight business,

while core Federal Express results came in a bit below; but management is guiding to +16%

CY2026 EPS expansion. The earnings call tonight will likely highlight a more favorable North America Transportation

macro backdrop for Domestic and International package demand. We suspect most Brandon R. Oglenski

investors and analysts will require a bit more time to dissect Federal Express results and forward +1 212 526 8903

guidance tonight as the company provides its first outlook post the FedEx Freight spin and brandon.oglenski@barclays.com

BCI, USadjusts to a calendar reporting structure going forward. As such, our initial read of results is a

stronger outcome at FedEx Freight (FDXF) with operating earnings coming in at $363 to our Eric Morgan, CFA

$318mm forecast (adjusted, but not pro forma for the spin) or a 15.1% operating margin, 160bps +1 212 526 9642

ahead of our prior forecast. For the core Federal Express Domestic and International package eric.morgan@barclays.com

BCI, USbusiness (FDX), adjusted operating earnings were a bit light of our forecast at $1.9bn (vs. our