FDX · Q4 FY2026
FEDEX CORP Q4 FY2026 earnings analysis
By SageNoodle ResearchNeutral
| Metric | Actual | Estimate | Result |
|---|---|---|---|
| Revenue | $25.01B | $22.22B (yr ago) | Beat |
| EPS | $6.64 | $6.82 (yr ago) | Miss |
| Free Cash Flow | Not meaningful (table: $3.27B) | Not meaningful (yr ago table: $2.52B) | Miss |
| Gross Margin | Not disclosed; not meaningful | Not disclosed; not meaningful (yr ago) | Miss |
| Operating Margin | 6.2% pre-tax margin | 8.1% pre-tax margin (yr ago) | Miss |
What changed
Q4 FY2026 revenue increased 12.6% year over year to $25.01 billion, but EPS declined 2.6% to $6.64 and the pre-tax margin contracted 190 basis points to 6.2%. The full year still produced 7.7% revenue growth and EPS of $18.55, but FY2026 pre-tax margin slipped to 5.8% from 5.9%.
Impact on the investment thesis
We initiate fair value at $315 per share rather than move a prior estimate because no prior coverage exists. Stronger revenue is offset by weaker quarterly profitability, leaving the shares fairly valued near the current $311.80 price.