10 Things About F4Q26: Complicated, but not thesis-changing

Research evidence excerpt

10 Things About F4Q26: Complicated, but not thesis-changing

24 June 2026

FedEx

estimate FEC’s operating margin would have expanded to double digits from 9%

last year, with ~30% incremental margins. FQ4 results – headwinds and all –

contributed to FDX putting up an Express margin of 7.7% for the year, the best in

four years.

4) In fact, there were more + thesis-supporting updates in tonight’s release

These included another quarter of B2B services driving “the majority” of FDX’s

quarterly revenue growth. As an example, management discussed double-digit

growth generated from data centers (with the space described as a “horizontal

ecosystem” where FDX is capturing demand “across the entire value chain, from

traditional hyperscalers to the industrial and power infrastructure that support

these massive build-outs.”). It expects incremental momentum in healthcare from

a new suite of services introduced to support its $10b revenue franchise in the

end-market vertical.

Overall, FQ4 was “the brightest quarter within the fiscal year from a B2B

perspective” as FDX saw improvement across all four of its key verticals. The

company attributes its B2B share gains broadly to its “unmatched

responsiveness” and “premium capabilities”, like “network priority, near real-time

monitoring, and white glove handling”.

5) Another positive was that volume growth continued for a 6th consecutive

quarter, with better “mix” underneath the surface…

To be fair, volume growth did moderate to 1.7% in FQ4 from 3.3% in FQ3 on a

global package basis, but the mix was encouraging: strategically important

categories such as US Priority, Ground Commercial, and International Priority

accelerated on a one- and/or two-year stack, while softer growth was