EX-99.12fedexrecastexhibit991.htmEX-99.1 Document
Exhibit 99.1
SUPPLEMENTAL HISTORICAL FINANCIAL INFORMATION
T1Effective June 1, 2026, FedEx Corporation (“FedEx”) changed its fiscal year end from May 31 to December 31. As a result, FedEx will report operating results covering the seven-month transition period from June 1, 2026 through December 31, 2026 (the “Transition Period”) in a Transition Report on Form 10-K. Following the Transition Period, FedEx will report its operating results on a calendar-year basis, beginning with the fiscal year ending December 31, 2027. Prior to the change in fiscal year end, FedEx reported financial results on a fiscal-year basis for the twelve months ending May 31. Below is an illustration of the reporting periods before and after the change in fiscal year end:
T2On June 1, 2026, FedEx completed its spin-off of FedEx’s less-than-truckload freight transportation services businesses conducted through FedEx Freight (“FedEx Freight”) into a new, publicly traded company (the “Spin-Off”). The FedEx Freight business also included FedEx Custom Critical, Inc., LTL Select, and other operations historically included within the FedEx Freight reporting segment. As a result of the Spin-Off, FedEx no longer consolidates the FedEx Freight business and FedEx Freight is no longer a reportable segment.
In accordance with the requirements of U.S. Generally Accepted Accounting Principles (“GAAP”), following the Spin-Off, FedEx Freight is presented as discontinued operations and excluded from both continuing operations and segment results for all reporting periods, including comparable historical periods. Discontinued operations do not include historical intercompany transactions between FedEx and FedEx Freight, which were previously eliminated in consolidation. It also does not include allocations of shared service costs, such as data and technology, commercial back-office, and other general expenses, that were previously allocated to FedEx Freight through intercompany charges. Upon the Spin-Off, a portion of these costs transferred to FedEx Freight, while the remaining costs were retained by FedEx as stranded costs. Reductions to such costs are expected to be achieved through transition services agreements and cost management.
Beginning the first quarter of the Transition Period, T3FedEx realigned its internal reporting and management structure, resulting in the identification of two new reportable segments: Express U.S. Domestic and Express International. Prior to this change, these two segments comprised the Federal Express reportable segment. FedEx Dataworks, Inc., FedEx Office and Print Services, Inc., and FedEx Supply Chain, Inc.1 continued to be included in Corporate, other, and eliminations for segment reporting purposes for the periods presented. Certain data and technology expenses previously recorded under FedEx Dataworks have been reclassified into the U.S. Domestic segment. In addition, FedEx Logistics, Inc. (“FedEx Logistics”) was moved from Corporate, other, and eliminations to Express International.
These changes reflect the realignment of FedEx’s organizational structure and reporting regularly provided to our chief operating decision maker to assess performance and allocate resources. These changes had no impact on the consolidated results of operations or financial position of FedEx.
For informational purposes only, the supplemental historical financial information presented herein has been recast to reflect the above changes to FedEx’s quarterly and annual operating results, quarterly and annual segment results, and other relevant information and statistics, for the calendar years ended December 31, 2025 and 2024 and each of the calendar quarters ended March 31, June 30, September 30, and December 31, 2025 and 2024. This unaudited financial information is based on the historical consolidated financial statements after giving effect to the change in fiscal year end, the presentation of the FedEx Freight business as discontinued operations, and the presentation of FedEx’s new reportable segments. This supplemental information should be read in conjunction with FedEx's Annual Reports on Form 10-K for the years ended May 31, 2026, May 31, 2025, and May 31, 2024 and FedEx’s quarterly reports on Form 10-Q for the quarterly periods ended February 28, 2026, November 30, 2025, August 31, 2025, February 28, 2025, November 30, 2024, August 31, 2024, February 28, 2024, November 30, 2023, and August 31, 2023.
The unaudited supplemental historical financial information contained herein does not represent a restatement or reissuance of previously issued financial statements and is not indicative of future or annual results.
1 On July 1, 2026, FedEx announced that it would sell its FedEx Supply Chain business to CMA CGM Group for $1.4 billion as part of a strategic portfolio streamlining effort. The transaction is expected to close in the second half of calendar year 2026. Upon completion of the sale, FedEx will no longer consolidate FedEx Supply Chain and FedEx Supply Chain will no longer be included in Corporate, other, and eliminations.
-1-
Exhibit 99.1
FORWARD-LOOKING STATEMENTS
Certain statements in this Exhibit 99.1 may be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act, such as statements regarding assumptions on allocations of shared costs and mitigation of stranded costs and the assumptions underlying such 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 FedEx operates; uncertainty and additional volatility in the global trade environment; FedEx’s ability to successfully implement business strategies and global transformation program and network optimization initiatives, including Network 2.0 and Tricolor, effectively 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; the ability to achieve the anticipated benefits of the Spin-Off; the possibility of disruption, including changes to existing business relationships, disputes, litigation, or unanticipated costs in connection with the 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 FedEx’s global transformation programs and other ongoing reviews and initiatives; a significant data breach or other disruption to FedEx’s technology infrastructure; damage to the FedEx reputation or loss of brand equity; FedEx’s ability to meet labor and purchased transportation needs while controlling related costs; failure of third-party service providers to perform as expected, or disruptions in FedEx’s 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 the ability to efficiently or fully utilize FedEx 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; the ability to match capacity to shifting volume levels; an increase in self-insurance accruals and expenses; 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; failure to receive or collect expected insurance coverage; the 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 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 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; the 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; the ability to achieve or demonstrate progress on FedEx’s goal of carbon-neutral operations by 2040; successful completion of 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 the Annual Report on Form 10-K for the fiscal year ending 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. FedEx does 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.
-2-
FEDEX CORPORATION
CONSOLIDATED BALANCE SHEETS
RECASTED TO REFLECT CHANGE IN FISCAL YEAR END TO DECEMBER 31
RECASTED TO PRESENT FEDEX FREIGHT AS DISCONTINUED OPERATIONS
RECASTED TO PRESENT NEW SEGMENT REPORTING STRUCTURE
(IN MILLIONS)
(unaudited)
December 31,
2025
2024
ASSETS
CURRENT ASSETS
Cash and cash equivalents
$
6,531
$
4,854
Receivables, less allowances
11,957
11,256
Spare parts, supplies, and fuel, less allowances
615
601
Prepaid expenses and other
1,361
1,111
Current assets of discontinued operations
1,111
238
Total current assets
21,575
18,060
PROPERTY AND EQUIPMENT, AT COST
82,906
79,572
Less accumulated depreciation and amortization
44,170
41,236
Net property and equipment
38,736
38,336
OTHER LONG-TERM ASSETS
Operating lease right-of-use assets, net
14,715
15,130
Goodwill
6,074
5,629
Other assets
4,374
3,694
Non-current assets of discontinued operations
4,837
4,741
Total other long-term assets
30,000
29,194
TOTAL ASSETS
$
90,311
$
85,590
-3-
FEDEX CORPORATION
CONSOLIDATED BALANCE SHEETS
RECASTED TO REFLECT CHANGE IN FISCAL YEAR END TO DECEMBER 31
RECASTED TO PRESENT FEDEX FREIGHT AS DISCONTINUED OPERATIONS
RECASTED TO PRESENT NEW SEGMENT REPORTING STRUCTURE
(IN MILLIONS)
(unaudited)
December 31,
2025
2024
LIABILITIES AND COMMON STOCKHOLDERS' INVESTMENT
CURRENT LIABILITIES
Accrued expenses
$
5,220
$
4,642
Accounts payable
4,355
3,448
Accrued salaries and employee benefits
2,610
2,520
Operating lease liabilities
2,403
2,284
Current portion of long-term debt
886
595
Current liabilities of discontinued operations
711
664
Total current liabilities
16,185
14,153
LONG-TERM DEBT, LESS CURRENT PORTION
20,302
19,415
OTHER LONG-TERM LIABILITIES
Operating lease liabilities
12,671
13,262
Self-insurance accruals
4,163
3,768
Deferred income taxes
3,486
3,923
Pension, postretirement healthcare, and other benefit obligations
1,676
1,555
Other liabilities
804
650
Non-current liabilities of discontinued operations
1,743
1,719
Total other long-term liabilities
24,543
24,877
COMMITMENTS AND CONTINGENCIES
COMMON STOCKHOLDERS’ INVESTMENT
Common stock, $0.10 par value; 800 million shares authorized; 318 million shares issued as of December 31, 2025 and 2024
32
32
Additional paid-in capital
4,418
4,176
Retained earnings
43,110
39,892
Accumulated other comprehensive loss
(1,342)
(1,522)
Treasury stock, at cost; 82 million shares as of December 31, 2025 and 78 million shares as of December 31, 2024
(16,937)
(15,433)
Total common stockholders’ investment
29,281
27,145
TOTAL LIABILITIES AND COMMON STOCKHOLDERS’ INVESTMENT
$
90,311
$
85,590
-4-
FEDEX CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
RECASTED TO REFLECT CHANGE IN FISCAL YEAR END TO DECEMBER 31
RECASTED TO PRESENT FEDEX FREIGHT AS DISCONTINUED OPERATIONS
RECASTED TO PRESENT NEW SEGMENT REPORTING STRUCTURE
(IN MILLIONS, EXCEPT PER SHARE AMOUNTS)
(unaudited)
Years ended December 31,
2025
2024
REVENUE:
Express U.S. Domestic segment
$
54,401
$
51,508
Express International segment
25,337
24,835
Corporate, other, and eliminations
2,725
2,787
TOTAL REVENUE
82,463
79,130
OPERATING EXPENSES:
Salaries and employee benefits
28,356
27,227
Purchased transportation
21,833
20,676
Rentals and landing fees
4,456
4,341
Depreciation and amortization
3,867
3,883
Fuel
3,058
3,714
Maintenance and repairs
2,988
2,935
Business optimization and realignment costs
345
815
Goodwill and other asset impairment charges
21
157
Separation and other costs
14
—
Other
12,971
12,110
TOTAL OPERATING EXPENSES
77,909
75,858
OPERATING INCOME:
Express U.S. Domestic segment
4,421
3,365
Express International segment
572
544
Corporate, other, and eliminations
(439)
(637)
TOTAL OPERATING INCOME
4,554
3,272
OTHER INCOME (EXPENSE):
Other retirement plans income
722
738
Interest, net
(497)
(384)
Other, net
(132)
(64)
TOTAL OTHER INCOME (EXPENSE)
93
290
INCOME BEFORE INCOME TAXES
4,647
3,562
PROVISION FOR INCOME TAXES
1,165
916
NET INCOME FROM CONTINUING OPERATIONS
3,482
2,646
NET INCOME FROM DISCONTINUED OPERATIONS
1,066
1,568
NET INCOME
$
4,548
$
4,214
Continuing operations
$
14.72
$
10.86
Discontinued operations
4.49
6.41
BASIC EARNINGS PER COMMON SHARE
$
19.21
$
17.27
Continuing operations
$
14.62
$
10.74
Discontinued operations
4.47
6.34
DILUTED EARNINGS PER COMMON SHARE
$
19.09
$
17.08
DIVIDENDS DECLARED PER COMMON SHARE
$
5.70
$
5.35
-5-
FEDEX CORPORATION
QUARTERLY STATEMENTS OF INCOME
RECASTED TO REFLECT CHANGE IN FISCAL YEAR END TO DECEMBER 31
RECASTED TO PRESENT FEDEX FREIGHT AS DISCONTINUED OPERATIONS
RECASTED TO PRESENT NEW SEGMENT REPORTING STRUCTURE
(IN MILLIONS, EXCEPT PER SHARE AMOUNTS)
(unaudited)
2025
FIRST QUARTER
SECOND QUARTER
THIRD QUARTER
FOURTH QUARTER
REVENUE:
Express U.S. Domestic segment
$
12,319
$
12,925
$
13,392
$
15,765
Express International segment
5,999
6,147
6,363
6,828
Corporate, other, and eliminations
685
697
677
666
TOTAL REVENUE
19,003
19,769
20,432
23,259
OPERATING EXPENSES:
Salaries and employee benefits
6,615
6,815
7,078
7,848
Purchased transportation
4,944
5,145
5,419
6,325
Rentals and landing fees
1,087
1,077
1,129
1,163
Depreciation and amortization
951
989
972
955
Fuel
762
721
774
801
Maintenance and repairs
692
742
784
770
Business optimization and realignment costs
157
113
54
21
Goodwill and other asset impairment charges
—
21
—
—
Separation and other costs
—
1
7
6
Other
3,044
3,248
3,243
3,436
TOTAL OPERATING EXPENSES
18,252
18,872
19,460
21,325
OPERATING INCOME:
Express U.S. Domestic segment
780
982
884
1,775
Express International segment
87
47
192
246
Corporate, other, and eliminations
(116)
(132)
(104)
(87)
TOTAL OPERATING INCOME
751
897
972
1,934
OTHER INCOME (EXPENSE):
Other retirement plans income
47
568
52
55
Interest, net
(109)
(130)
(125)
(133)
Other, net
(37)
(100)
15
(10)
TOTAL OTHER INCOME (EXPENSE)
(99)
338
(58)
(88)
INCOME BEFORE INCOME TAXES
652
1,235
914
1,846
PROVISION FOR INCOME TAXES
122
315
269
459
NET INCOME FROM CONTINUING OPERATIONS
530
920
645
1,387
NET INCOME FROM DISCONTINUED OPERATIONS
301
458
275
32
NET INCOME
$
831
$
1,378
$
920
$
1,419
Continuing operations
$
2.21
$
3.87
$
2.74
$
5.90
Discontinued operations
1.26
1.93
1.16
0.14
BASIC EARNINGS PER COMMON SHARE
$
3.47
$
5.80
$
3.90
$
6.04
Continuing operations
$
2.19
$
3.85
$
2.73
$
5.85
Discontinued operations
1.25
1.92
1.16
0.14
DILUTED EARNINGS PER COMMON SHARE
$
3.44
$
5.77
$
3.89
$
5.99
DIVIDENDS DECLARED PER COMMON SHARE
$
1.37
$
1.44
$
1.45
$
1.44
-6-
FEDEX CORPORATION
QUARTERLY STATEMENTS OF INCOME
RECASTED TO REFLECT CHANGE IN FISCAL YEAR END TO DECEMBER 31
RECASTED TO PRESENT FEDEX FREIGHT AS DISCONTINUED OPERATIONS
RECASTED TO PRESENT NEW SEGMENT REPORTING STRUCTURE
(IN MILLIONS, EXCEPT PER SHARE AMOUNTS)
(unaudited)
2024
FIRST QUARTER
SECOND QUARTER
THIRD QUARTER
FOURTH QUARTER
REVENUE:
Express U.S. Domestic segment
$
12,340
$
12,659
$
12,519
$
13,990
Express International segment
5,928
6,113
6,186
6,608
Corporate, other, and eliminations
694
698
696
699
TOTAL REVENUE
18,962
19,470
19,401
21,297
OPERATING EXPENSES:
Salaries and employee benefits
6,495
6,747
6,784
7,201
Purchased transportation
4,772
4,940
5,142
5,822
Rentals and landing fees
1,066
1,070
1,098
1,107
Depreciation and amortization
974
990
965
954
Fuel
976
976
925
837
Maintenance and repairs
714
737
754
730
Goodwill and other asset impairment charges
—
157
—
—
Business optimization and realignment costs
183
159
187
286
Other
2,950
3,060
3,008
3,092
TOTAL OPERATING EXPENSES
18,130
18,836
18,863
20,029
OPERATING INCOME:
Express U.S. Domestic segment
864
658
684
1,159
Express International segment
138
110
32
264
Corporate, other, and eliminations
(170)
(134)
(178)
(155)
TOTAL OPERATING INCOME
832
634
538
1,268
OTHER INCOME (EXPENSE)
Other retirement plans income
41
598
53
46
Interest, net
(94)
(87)
(90)
(113)
Other, net
9
(70)
15
(18)
TOTAL OTHER INCOME (EXPENSE)
(44)
441
(22)
(85)
INCOME BEFORE INCOME TAXES
788
1,075
516
1,183
PROVISION FOR INCOME TAXES
202
294
133
287
NET INCOME FROM CONTINUING OPERATIONS
586
781
383
896
NET INCOME FROM DISCONTINUED OPERATIONS
423
467
406
272
NET INCOME
$
1,009
$
1,248
$
789
$
1,168
Continuing operations
$
2.38
$
3.18
$
1.57
$
3.73
Discontinued operations
1.72
1.90
1.66
1.13
BASIC EARNINGS PER COMMON SHARE
$
4.10
$
5.08
$
3.23
$
4.86
Continuing operations
$
2.35
$
3.15
$
1.55
$
3.69
Discontinued operations
1.70
1.88
1.64
1.12
DILUTED EARNINGS PER COMMON SHARE
$
4.05
$
5.03
$
3.19
$
4.81
DIVIDENDS DECLARED PER COMMON SHARE
$
1.25
$
1.37
$
1.36
$
1.37
-7-
FEDEX CORPORATION
CAPITAL EXPENDITURES
RECASTED TO REFLECT CHANGE IN FISCAL YEAR END TO DECEMBER 31
RECASTED TO PRESENT FEDEX FREIGHT AS DISCONTINUED OPERATIONS
RECASTED TO PRESENT NEW SEGMENT REPORTING STRUCTURE
(IN MILLIONS)
(unaudited)
Years ended December 31,
2025
2024
BY ASSET TYPE
Aircraft and related equipment
$
1,167
$
561
Package handling and ground support equipment
888
845
Vehicles and trailers
149
269
Information technology
439
561
Facilities and other
922
1,121
TOTAL
$
3,565
$
3,357
-8-
EXPRESS U.S. DOMESTIC SEGMENT
STATEMENTS OF INCOME
RECASTED TO REFLECT CHANGE IN FISCAL YEAR END TO DECEMBER 31
RECASTED TO PRESENT FEDEX FREIGHT AS DISCONTINUED OPERATIONS
RECASTED TO PRESENT NEW SEGMENT REPORTING STRUCTURE
(IN MILLIONS)
(unaudited)
Years ended December 31,
2025
2024
REVENUE:
U.S. Package:
U.S. ground
$
35,905
$
33,386
U.S. priority
11,115
10,478
U.S. deferred
5,454
4,931
Total package revenue
52,474
48,795
U.S. Freight
1,196
2,041
Other
731
672
TOTAL REVENUE(1)
54,401
51,508
OPERATING EXPENSES:
Salaries and employee benefits
18,024
17,247
Purchased transportation
15,271
14,026
Rentals and landing fees
2,679
2,661
Depreciation and amortization
2,601
2,609
Fuel
1,045
1,340
Maintenance and repairs
1,902
1,921
Business optimization and realignment costs
142
368
Goodwill and other asset impairment charges
20
153
Separation and other costs
13
—
Intercompany allocation
(254)
(164)
Other
8,537
7,982
TOTAL OPERATING EXPENSES
49,980
48,143
OPERATING INCOME
$
4,421
$
3,365
OPERATING MARGIN(1)
8.1
%
6.5
%
(1) Amounts reflected are from continuing operations.
-9-
EXPRESS U.S. DOMESTIC SEGMENT
QUARTERLY STATEMENTS OF INCOME
RECASTED TO REFLECT CHANGE IN FISCAL YEAR END TO DECEMBER 31
RECASTED TO PRESENT FEDEX FREIGHT AS DISCONTINUED OPERATIONS
RECASTED TO PRESENT NEW SEGMENT REPORTING STRUCTURE
(IN MILLIONS)
(unaudited)
2025
FIRST QUARTER
SECOND QUARTER
THIRD QUARTER
FOURTH QUARTER
REVENUE:
U.S. Package:
U.S. ground
$
8,065
$
8,525
$
8,748
$
10,567
U.S. priority
2,600
2,718
2,826
2,971
U.S. deferred
1,229
1,263
1,302
1,660
Total package revenue
11,894
12,506
12,876
15,198
U.S. Freight
295
290
315
296
Other
130
129
201
271
TOTAL REVENUE(1)
12,319
12,925
13,392
15,765
OPERATING EXPENSES:
Salaries and employee benefits
4,174
4,269
4,471
5,110
Purchased transportation
3,374
3,566
3,778
4,553
Rentals and landing fees
663
642
674
700
Depreciation and amortization
636
668
656
641
Fuel
258
252
263
272
Maintenance and repairs
433
474
498
497
Business optimization and realignment costs
67
54
15
6
Goodwill and other asset impairment charges
—
20
—
—
Separation and other costs
—
1
6
6
Intercompany allocation
(52)
(59)
(72)
(71)
Other
1,986
2,056
2,219
2,276
TOTAL OPERATING EXPENSES
11,539
11,943
12,508
13,990
OPERATING INCOME
$
780
$
982
$
884
$
1,775
OPERATING MARGIN(1)
6.3
%
7.6
%
6.6
%
11.3
%
(1) Amounts reflected are from continuing operations.
-10-
EXPRESS U.S. DOMESTIC SEGMENT
QUARTERLY STATEMENTS OF INCOME
RECASTED TO REFLECT CHANGE IN FISCAL YEAR END TO DECEMBER 31
RECASTED TO PRESENT FEDEX FREIGHT AS DISCONTINUED OPERATIONS
RECASTED TO PRESENT NEW SEGMENT REPORTING STRUCTURE
(IN MILLIONS)
(unaudited)
2024
FIRST QUARTER
SECOND QUARTER
THIRD QUARTER
FOURTH QUARTER
REVENUE:
U.S. Package:
U.S. ground
$
7,796
$
8,099
$
8,020
$
9,471
U.S. priority
2,598
2,625
2,586
2,669
U.S. deferred
1,198
1,184
1,149
1,400
Total package revenue
11,592
11,908
11,755
13,540
U.S. Freight
602
582
559
298
Other
146
169
205
152
TOTAL REVENUE(1)
12,340
12,659
12,519
13,990
OPERATING EXPENSES:
Salaries and employee benefits
4,089
4,254
4,292
4,612
Purchased transportation
3,225
3,282
3,424
4,095
Rentals and landing fees
660
661
666
674
Depreciation and amortization
663
668
649
629
Fuel
376
365
326
273
Maintenance and repairs
469
488
488
476
Goodwill and other asset impairment charges
—
153
—
—
Separation and other costs
—
—
—
—
Business optimization and realignment costs
74
130
72
92
Intercompany allocation
(31)
(34)
(42)
(57)
Other
1,951
2,034
1,960
2,037
TOTAL OPERATING EXPENSES
11,476
12,001
11,835
12,831
OPERATING INCOME
$
864
$
658
$
684
$
1,159
OPERATING MARGIN(1)
7.0
%
5.2
%
5.5
%
8.3
%
(1) Amounts reflected are from continuing operations.
-11-
EXPRESS U.S. DOMESTIC SEGMENT
ANNUAL OPERATING STATISTICS
RECASTED TO REFLECT CHANGE IN FISCAL YEAR END TO DECEMBER 31
RECASTED TO PRESENT FEDEX FREIGHT AS DISCONTINUED OPERATIONS
RECASTED TO PRESENT NEW SEGMENT REPORTING STRUCTURE
(IN THOUSANDS, EXCEPT YIELD AMOUNTS)
(unaudited)
Years ended December 31,
2025
2024
Package Statistics
Average daily package volume (ADV):(1)
U.S. priority
1,649
1,604
U.S. deferred
1,121
1,019
U.S. ground commercial
4,270
4,258
U.S. ground home delivery/economy
7,332
6,801
Total U.S. domestic ADV
14,372
13,682
Revenue per package (yield):
U.S. priority
$
26.44
$
25.51
U.S. deferred
19.09
18.89
U.S. ground
12.14
11.80
Total U.S. domestic composite
14.32
13.93
Freight Statistics
Average daily freight pounds:
U.S. freight
2,169
4,519
Revenue per pound (yield):
U.S. freight
$
2.16
$
1.76
Operating Days(2)
255
256
(1) ADV is calculated on a 5-day-per-week basis.
(2) Operating days for calendar year 2026 and 2027 are expected to be 255 and 254, respectively.
-12-
EXPRESS U.S. DOMESTIC SEGMENT
QUARTERLY OPERATING STATISTICS
RECASTED TO REFLECT CHANGE IN FISCAL YEAR END TO DECEMBER 31
RECASTED TO PRESENT FEDEX FREIGHT AS DISCONTINUED OPERATIONS
RECASTED TO PRESENT NEW SEGMENT REPORTING STRUCTURE
(IN THOUSANDS, EXCEPT YIELD AMOUNTS)
(unaudited)
2025
FIRST QUARTER
SECOND QUARTER
THIRD QUARTER
FOURTH QUARTER
Package Statistics
Average daily package volume (ADV):(1)
U.S. priority
1,561
1,644
1,681
1,707
U.S. deferred
1,018
1,066
1,074
1,324
U.S. ground commercial
4,144
4,215
4,370
4,348
U.S. ground home delivery/economy
6,528
6,818
6,969
8,999
Total U.S. domestic ADV
13,251
13,743
14,094
16,378
Revenue per package (yield):
U.S. priority
$
26.43
$
25.83
$
26.27
$
27.20
U.S. deferred
19.17
18.52
18.96
19.58
U.S. ground
12.00
12.07
12.05
12.37
Total U.S. domestic composite
14.25
14.22
14.28
14.50
Freight Statistics
Average daily freight pounds:
U.S. freight
2,274
2,149
2,202
2,051
Revenue per pound (yield):
U.S. freight
$
2.06
$
2.11
$
2.23
$
2.26
Operating Days(2)
63
64
64
64
(1) ADV is calculated on a 5-day-per-week basis.
(2) Operating days for the quarters ending March 31, June 30, September 30 and December 31 for calendar year 2027 are expected to be 63, 64, 64 and 63, respectively. Operating days for the quarters ending March 31, June 30, September 30 and December 31 for calendar year 2026 are expected to be 63, 64, 64 and 64, respectively.
-13-
EXPRESS U.S. DOMESTIC SEGMENT
QUARTERLY OPERATING STATISTICS
RECASTED TO REFLECT CHANGE IN FISCAL YEAR END TO DECEMBER 31
RECASTED TO PRESENT FEDEX FREIGHT AS DISCONTINUED OPERATIONS
RECASTED TO PRESENT NEW SEGMENT REPORTING STRUCTURE
(IN THOUSANDS, EXCEPT YIELD AMOUNTS)
(unaudited)
2024
FIRST QUARTER
SECOND QUARTER
THIRD QUARTER
FOURTH QUARTER
Package Statistics
Average daily package volume (ADV):(1)
U.S. priority
1,584
1,610
1,603
1,619
U.S. deferred
963
980
965
1,170
U.S. ground commercial
4,149
4,258
4,344
4,283
U.S. ground home delivery/economy
6,066
6,304
6,425
8,411
Total U.S. domestic ADV
12,762
13,152
13,337
15,483
Revenue per package (yield):
U.S. priority
$
25.62
$
25.47
$
25.20
$
25.77
U.S. deferred
19.45
18.89
18.59
18.69
U.S. ground
11.92
11.98
11.64
11.66
Total U.S. domestic composite
14.19
14.15
13.77
13.66
Freight Statistics
Average daily freight pounds:
U.S. freight
5,622
5,521
4,711
2,221
Revenue per pound (yield):
U.S. freight
$
1.67
$
1.65
$
1.85
$
2.09
Operating Days(2)
64
64
64
64
(1) ADV is calculated on a 5-day-per-week basis.
(2) Operating days for the quarters ending March 31, June 30, September 30 and December 31 for calendar year 2027 are expected to be 63, 64, 64 and 63, respectively. Operating days for the quarters ending March 31, June 30, September 30 and December 31 for calendar year 2026 are expected to be 63, 64, 64 and 64, respectively.
-14-
EXPRESS INTERNATIONAL SEGMENT
STATEMENTS OF INCOME
RECASTED TO REFLECT CHANGE IN FISCAL YEAR END TO DECEMBER 31
RECASTED TO PRESENT FEDEX FREIGHT AS DISCONTINUED OPERATIONS
RECASTED TO PRESENT NEW SEGMENT REPORTING STRUCTURE
(IN MILLIONS)
(unaudited)
Years ended December 31,
2025
2024
REVENUE:
Package:
International priority
$
9,048
$
9,098
International economy
5,767
5,493
Total International export package revenue
14,815
14,591
International domestic(1)
4,615
4,622
Total package revenue
19,430
19,213
Freight:
International priority
2,382
2,273
International economy
2,120
1,939
Total freight revenue
4,502
4,212
Other
1,405
1,410
TOTAL REVENUE(2)
25,337
24,835
OPERATING EXPENSES:
Salaries and employee benefits
8,631
8,108
Purchased transportation
6,359
6,498
Rentals and landing fees
1,385
1,279
Depreciation and amortization
1,165
1,162
Fuel
2,012
2,372
Maintenance and repairs
980
903
Business optimization and realignment costs
72
224
Goodwill and other asset impairment charges
—
4
Intercompany allocations
26
(10)
Other
4,135
3,751
TOTAL OPERATING EXPENSES
24,765
24,291
OPERATING INCOME
$
572
$
544
OPERATING MARGIN(2)
2.3
%
2.2
%
(1) International domestic revenue and statistics relate to FedEx’s international intra-country operations.
(2) Amounts reflected are from continuing operations.
-15-
EXPRESS INTERNATIONAL SEGMENT
QUARTERLY STATEMENTS OF INCOME
RECASTED TO REFLECT CHANGE IN FISCAL YEAR END TO DECEMBER 31
RECASTED TO PRESENT FEDEX FREIGHT AS DISCONTINUED OPERATIONS
RECASTED TO PRESENT NEW SEGMENT REPORTING STRUCTURE
(IN MILLIONS)
(unaudited)
2025
FIRST QUARTER
SECOND QUARTER
THIRD QUARTER
FOURTH QUARTER
REVENUE:
Package:
International priority
$
2,105
$
2,177
$
2,325
$
2,441
International economy
1,438
1,360
1,403
1,566
Total International export package
3,543
3,537
3,728
4,007
International domestic(1)
1,051
1,137
1,166
1,261
Total package revenue
4,594
4,674
4,894
5,268
Freight:
International priority
565
599
588
630
International economy
493
518
538
571
Total freight revenue
1,058
1,117
1,126
1,201
Other
347
356
343
359
TOTAL REVENUE(2)
5,999
6,147
6,363
6,828
OPERATING EXPENSES:
Salaries and employee benefits
2,017
2,114
2,190
2,310
Purchased transportation
1,520
1,527
1,588
1,724
Rentals and landing fees
326
338
356
365
Depreciation and amortization
291
294
292
288
Fuel
503
469
510
530
Maintenance and repairs
233
239
261
247
Business optimization and realignment costs
46
16
4
6
Intercompany allocations
—
1
10
15
Other
976
1,102
960
1,097
TOTAL OPERATING EXPENSES
5,912
6,100
6,171
6,582
OPERATING INCOME
$
87
$
47
$
192
$
246
OPERATING MARGIN(2)
1.5
%
0.8
%
3.0
%
3.6
%
(1) International domestic revenue and statistics relate to FedEx’s international intra-country operations.
(2) Amounts reflected are from continuing operations.
-16-
EXPRESS INTERNATIONAL SEGMENT
QUARTERLY STATEMENTS OF INCOME
RECASTED TO REFLECT CHANGE IN FISCAL YEAR END TO DECEMBER 31
RECASTED TO PRESENT FEDEX FREIGHT AS DISCONTINUED OPERATIONS
RECASTED TO PRESENT NEW SEGMENT REPORTING STRUCTURE
(IN MILLIONS)
(unaudited)
2024
FIRST QUARTER
SECOND QUARTER
THIRD QUARTER
FOURTH QUARTER
REVENUE:
Package:
International priority
$
2,309
$
2,346
$
2,188
$
2,255
International economy
1,146
1,234
1,465
1,648
Total International export package
3,455
3,580
3,653
3,903
International domestic(1)
1,150
1,146
1,125
1,201
Total package revenue
4,605
4,726
4,778
5,104
Freight:
International priority
537
548
559
629
International economy
469
477
485
508
Total freight revenue
1,006
1,025
1,044
1,137
Other
317
362
364
367
TOTAL REVENUE(2)
5,928
6,113
6,186
6,608
OPERATING EXPENSES:
Salaries and employee benefits
1,936
2,010
2,023
2,139
Purchased transportation
1,509
1,620
1,681
1,688
Rentals and landing fees
305
307
334
333
Depreciation and amortization
283
295
288
296
Fuel
600
610
599
563
Maintenance and repairs
218
220
239
226
Business optimization and realignment costs
52
(30)
45
157
Goodwill and other asset impairment charges
—
4
—
—
Intercompany allocations
(1)
(1)
(3)
(5)
Other
888
968
948
947
TOTAL OPERATING EXPENSES
5,790
6,003
6,154
6,344
OPERATING INCOME
$
138
$
110
$
32
$
264
OPERATING MARGIN(2)
2.3
%
1.8
%
0.5
%
4.0
%
(1) International domestic revenue and statistics relate to FedEx’s international intra-country operations.
(2) Amounts reflected are from continuing operations.
-17-
EXPRESS INTERNATIONAL SEGMENT
ANNUAL OPERATING STATISTICS
RECASTED TO REFLECT CHANGE IN FISCAL YEAR END TO DECEMBER 31
RECASTED TO PRESENT FEDEX FREIGHT AS DISCONTINUED OPERATIONS
RECASTED TO PRESENT NEW SEGMENT REPORTING STRUCTURE
(IN THOUSANDS, EXCEPT YIELD AMOUNTS)
(unaudited)
Years ended December 31,
2025
2024
Package Statistics
Average daily package volume (ADV)(1)
International priority
564
628
International economy
558
490
Total international export ADV
1,122
1,118
International domestic(2)
1,887
1,922
Total ADV
3,009
3,040
Revenue per package (yield):
International priority
$
62.93
$
56.63
International economy
40.54
43.76
International export composite
51.79
50.98
International domestic(2)
9.59
9.40
Composite package yield
25.32
24.69
Freight Statistics
Average daily freight pounds:
International priority
4,755
4,613
International economy
11,580
11,396
Total average daily freight pounds
16,335
16,009
Revenue per pound (yield):
International priority
$
1.97
$
1.93
International economy
0.72
0.66
Composite freight yield
1.08
1.03
Operating Days(3)
255
256
(1) ADV is calculated on a 5-day-per-week basis.
(2) International domestic revenue and statistics relate to FedEx’s international intra-country operations.
(3) Operating days for calendar year 2026 and 2027 are expected to be 255 and 254, respectively.
-18-
EXPRESS INTERNATIONAL SEGMENT
QUARTERLY OPERATING STATISTICS
RECASTED TO REFLECT CHANGE IN FISCAL YEAR END TO DECEMBER 31
RECASTED TO PRESENT FEDEX FREIGHT AS DISCONTINUED OPERATIONS
RECASTED TO PRESENT NEW SEGMENT REPORTING STRUCTURE
(IN THOUSANDS, EXCEPT YIELD AMOUNTS)
(unaudited)
2025
FIRST QUARTER
SECOND QUARTER
THIRD QUARTER
FOURTH QUARTER
Package Statistics
Average daily package volume (ADV):(1)
International priority
541
556
569
590
International economy
559
524
532
617
Total international export ADV
1,100
1,080
1,101
1,207
International domestic(2)
1,852
1,846
1,846
2,004
Total ADV
2,952
2,926
2,947
3,211
Revenue per package (yield):
International priority
$
61.81
$
61.18
$
63.87
$
64.68
International economy
40.82
40.57
41.23
39.68
International export composite
51.13
51.18
52.93
51.90
International domestic(2)
9.01
9.62
9.87
9.83
Composite package yield
24.70
24.96
25.96
25.64
Freight Statistics
Average daily freight pounds:
International priority
4,521
4,668
4,782
5,047
International economy
11,601
11,159
11,514
12,046
Total average daily freight pounds
16,122
15,827
16,296
17,093
Revenue per pound (yield):
International priority
$
1.98
$
2.01
$
1.92
$
1.95
International economy
0.67
0.73
0.73
0.74
Composite freight yield
1.04
1.10
1.08
1.10
Operating Days(3)
63
64
64
64
(1) ADV is calculated on a 5-day-per-week basis.
(2) International domestic revenue and statistics relate to FedEx’s international intra-country operations.
(3) Operating days for the quarters ending March 31, June 30, September 30 and December 31 for calendar year 2027 are expected to be 63, 64, 64 and 63, respectively. Operating days for the quarters ending March 31, June 30, September 30 and December 31 for calendar year 2026 are expected to be 63, 64, 64 and 64, respectively.
-19-
EXPRESS INTERNATIONAL SEGMENT
QUARTERLY OPERATING STATISTICS
RECASTED TO REFLECT CHANGE IN FISCAL YEAR END TO DECEMBER 31
RECASTED TO PRESENT FEDEX FREIGHT AS DISCONTINUED OPERATIONS
RECASTED TO PRESENT NEW SEGMENT REPORTING STRUCTURE
(IN THOUSANDS, EXCEPT YIELD AMOUNTS)
(unaudited)
2024
FIRST QUARTER
SECOND QUARTER
THIRD QUARTER
FOURTH QUARTER
Package Statistics
Average daily package volume (ADV):(1)
International priority
635
680
596
599
International economy
387
414
541
619
Total international export ADV
1,022
1,094
1,137
1,218
International domestic(2)
1,867
1,838
1,911
2,070
Total ADV
2,889
2,932
3,048
3,288
Revenue per package (yield):
International priority
$
56.82
$
53.89
$
57.39
$
58.80
International economy
46.32
46.58
42.27
41.57
International export composite
52.85
51.12
50.19
50.04
International domestic(2)
9.62
9.74
9.20
9.06
Composite package yield
24.91
25.18
24.49
24.25
Freight Statistics
Average daily freight pounds:
International priority
4,487
4,503
4,550
4,912
International economy
11,447
11,208
11,265
11,665
Total average daily freight pounds
15,934
15,711
15,815
16,577
Revenue per pound (yield):
International priority
$
1.87
$
1.90
$
1.92
$
2.00
International economy
0.64
0.67
0.67
0.68
Composite freight yield
0.99
1.02
1.03
1.07
Operating Days(3)
64
64
64
64
(1) ADV is calculated on a 5-day-per-week basis.
(2) International domestic revenue and statistics relate to FedEx’s international intra-country operations.
(3) Operating days for the quarters ending March 31, June 30, September 30 and December 31 for calendar year 2027 are expected to be 63, 64, 64 and 63, respectively. Operating days for the quarters ending March 31, June 30, September 30 and December 31 for calendar year 2026 are expected to be 63, 64, 64 and 64, respectively.
-20-
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES
The supplemental historical financial information within this Exhibit 99.1 is presented in accordance with accounting principles generally accepted in the United States (“GAAP” or “reported”). To supplement the reporting of the information determined in accordance with GAAP with certain non-GAAP (or “adjusted”) financial measures, included in tables below are the adjusted operating income and margin, net income, and diluted earnings per share for the calendar years ended December 31, 2025 and 2024 and each of the calendar quarters ended March 31, June 30, September 30, and December 31, 2025 and 2024. These financial measures are provided on a continuing operations basis to assist investors with assessing trends in FedEx’s underlying businesses and exclude the impact of discontinued operations, as well as the impact of the following items (as applicable), which are unrelated to FedEx’s core operating performance:
•Mark-To-Market (“MTM”) adjustments for retirement plan accounting incurred: FedEx’s defined benefit pension plans are measured using actuarial techniques that reflect management’s assumptions for expected returns on assets (“EROA”), discount rate, and demographic experience such as salary increases, expected retirement, mortality, and employee turnover. Differences between these assumptions and actual experience are recognized through MTM accounting.
•Business optimization and realignment costs incurred: Business optimization costs relate to the following transformation initiatives aimed to improve long-term profitability, drive efficiency within and between the transportation segments, lower overhead and support costs, and transform FedEx’s digital capabilities: our Network 2.0 program, our international operational transformation programs, the Europe workforce reduction plan, and DRIVE initiatives commenced in prior years. These costs were primarily related to severance, incentive payments to contracted service providers, and professional services.
•Costs related to the spin-off of FedEx Freight incurred: In December 2024, FedEx announced that its Board of Directors decided to pursue a full separation of FedEx Freight through the capital markets, creating a new publicly traded company. The transaction was implemented through the spin-off of shares of the new company to FedEx stockholders on June 1, 2026, and is intended to be tax-free for U.S. federal income tax purposes for FedEx stockholders. These costs were primarily related to professional fees.
•Costs related to the change in the company's fiscal year end: In January 2025, FedEx announced that its Board of Directors approved a change in the company's fiscal year end from May 31 to December 31, which became effective June 1, 2026. The company incurred costs related to the fiscal year change in the fourth quarter and full-year fiscal 2026. These costs were primarily related to professional fees.
•Charges and adjustments related to a legacy FedEx Ground legal matter: FedEx incurred charges in connection with a legacy FedEx Ground legal matter in 2024, which was both extraordinary in nature and did not represent recurring expenses in the ordinary course of business. In addition, certain adjustments were made in subsequent periods to partially reverse this loss accrual, thus resulting in a gain in certain periods.
•Charges and adjustments related to an international regulatory matter: FedEx incurred charges in connection with an international regulatory matter in 2025, which was both extraordinary in nature and did not represent recurring expenses in the ordinary course of business. In addition, certain adjustments were made in subsequent periods to partially reverse this loss accrual, thus resulting in a gain in certain periods.
•Remeasurement of state deferred income taxes under one FedEx structure: FedEx incurred income tax expense related to the remeasurement of U.S. state deferred income tax balances in connection with the one FedEx consolidation. The transitional impact of this income tax expense was both extraordinary in nature and did not represent recurring expenses in the ordinary course of business.
•Aircraft impairment charges incurred: In May of 2024 and 2025, FedEx made a decision to permanently retire certain aircraft, as well as certain related engines, which resulted in noncash impairment charges during these periods. These retirements are aligned with the company's fleet reduction and modernization strategy as the company continues to improve its global network efficiency and better align air network capacity with anticipated demand.
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 effective tax rate represents the difference in the effective tax rate calculated with and without the non-GAAP adjustment.
These adjusted financial measures facilitate analysis and comparisons of FedEx’s ongoing business operations because they exclude items that may not be indicative of, or are unrelated to, the company's and business segments' core operating performance, and may assist investors with comparisons to prior periods and assessing trends in FedEx’s underlying businesses. These adjustments are
-21-
consistent with how management views the 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.
These 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, the reported financial results. Accordingly, users of the 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 the non-GAAP financial measures to the most directly comparable GAAP measures for each period presented.
-22-
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
RECASTED TO REFLECT CHANGE IN FISCAL YEAR END TO DECEMBER 31
RECASTED TO PRESENT FEDEX FREIGHT AS DISCONTINUED OPERATIONS
RECASTED TO PRESENT NEW SEGMENT REPORTING STRUCTURE
(IN MILLIONS, EXCEPT OPERATING MARGIN AMOUNTS)
(unaudited)
FULL YEAR CALENDAR 2025
FedEx Corporation
Diluted
Earnings
Per Share
Operating
Income
Taxes(1)
Net
Income(2)
Dollars in millions, except EPS
Income
Margin
GAAP measure
$
4,554
5.5
%
$
1,165
$
3,482
$
14.62
Business optimization and realignment costs(3)
345
0.5
%
79
266
1.11
Fiscal year change costs(4)
14
—
3
11
0.05
Aircraft impairment charges(4)
21
—
5
16
0.07
International regulatory matter(5)
88
0.1
%
4
84
0.35
Legacy FedEx Ground legal matter(6)
(12)
—
(3)
(9)
(0.04)
MTM retirement plans accounting adjustment(7)
—
—
(101)
(317)
(1.33)
Non-GAAP measure
$
5,010
6.1
%
$
1,152
$
3,533
$
14.83
Express U.S. Domestic Segment
Operating
Dollars in millions
Income
Margin
GAAP measure
$
4,421
8.1
%
Business optimization and realignment costs(3)
142
0.3
%
Fiscal year change costs(4)
13
—
Aircraft impairment charges(4)
20
—
Legacy FedEx Ground legal matter(6)
(12)
—
Non-GAAP measure
$
4,584
8.4
%
Express International Segment
Operating
Dollars in millions
Income
Margin
GAAP measure
$
572
2.3
%
Business optimization and realignment costs(3)
72
0.3
%
International regulatory matter(5)
88
0.3
%
Non-GAAP measure
$
732
2.9
%
(1) Income taxes are based on the company’s approximate statutory tax rates applicable to each transaction.
(2) Effect of “Other income (expense)” on net income amount not shown.
(3) These expenses were recognized at Express U.S. Domestic, Express International, and Corporate, other, and eliminations.
(4) These expenses were recognized at Express U.S. Domestic and Corporate, other, and eliminations.
(5) These expenses were recognized at Express International.
(6) These expenses were recognized at Express U.S. Domestic.
(7) These expenses were recognized at Corporate, other, and eliminations.
-23-
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
RECASTED TO REFLECT CHANGE IN FISCAL YEAR END TO DECEMBER 31
RECASTED TO PRESENT FEDEX FREIGHT AS DISCONTINUED OPERATIONS
RECASTED TO PRESENT NEW SEGMENT REPORTING STRUCTURE
(IN MILLIONS, EXCEPT OPERATING MARGIN AMOUNTS)
(unaudited)
FOURTH QUARTER CALENDAR 2025
FedEx Corporation
Diluted
Earnings
Per Share
Operating
Income
Taxes(1)
Net
Income(2)
Dollars in millions, except EPS
Income
Margin
GAAP measure
$
1,934
8.3
%
$
459
$
1,387
$
5.85
Business optimization and realignment costs(3)
21
0.1
%
3
18
0.08
Fiscal year change costs(4)
6
—
1
5
0.02
International regulatory matter(5)
(12)
(0.1)
%
4
(16)
(0.07)
Non-GAAP measure
$
1,949
8.3
%
$
467
$
1,394
$
5.88
Express U.S. Domestic Segment
Operating
Dollars in millions
Income
Margin
GAAP measure
$
1,775
11.3
%
Business optimization and realignment costs(3)
6
—
Fiscal year change costs(4)
6
—
Non-GAAP measure
$
1,787
11.3
%
Express International Segment
Operating
Dollars in millions
Income
Margin
GAAP measure
$
246
3.6
%
Business optimization and realignment costs(3)
6
0.1
%
International regulatory matter(5)
(12)
(0.2)
%
Non-GAAP measure
$
240
3.5
%
(1) Income taxes are based on the company’s approximate statutory tax rates applicable to each transaction.
(2) Effect of “Other income (expense)” on net income amount not shown.
(3) These expenses were recognized at Express U.S. Domestic, Express International, and Corporate, other, and eliminations.
(4) These expenses were recognized at Express U.S. Domestic and Corporate, other, and eliminations.
(5) These expenses were recognized at Express International.
-24-
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
RECASTED TO REFLECT CHANGE IN FISCAL YEAR END TO DECEMBER 31
RECASTED TO PRESENT FEDEX FREIGHT AS DISCONTINUED OPERATIONS
RECASTED TO PRESENT NEW SEGMENT REPORTING STRUCTURE
(IN MILLIONS, EXCEPT OPERATING MARGIN AMOUNTS)
(unaudited)
THIRD QUARTER CALENDAR 2025
FedEx Corporation
Diluted
Earnings
Per Share
Operating
Income
Taxes(1)
Net
Income(2)
Dollars in millions, except EPS
Income
Margin
GAAP measure
$
972
4.8
%
$
269
$
645
$
2.73
Business optimization and realignment costs(3)
54
0.3
%
12
43
0.18
Fiscal year change costs(4)
7
—
1
5
0.02
Non-GAAP measure
$
1,033
5.1
%
$
282
$
693
$
2.93
Express U.S. Domestic Segment
Operating
Dollars in millions
Income
Margin
GAAP measure
$
884
6.6
%
Business optimization and realignment costs(3)
15
0.1
%
Fiscal year change costs(4)
6
—
Non-GAAP measure
$
905
6.7
%
Express International Segment
Operating
Dollars in millions
Income
Margin
GAAP measure
$
192
3.0
%
Business optimization and realignment costs(3)
4
0.1
%
Non-GAAP measure
$
196
3.1
%
(1) Income taxes are based on the company’s approximate statutory tax rates applicable to each transaction.
(2) Effect of “Other income (expense)” on net income amount not shown.
(3) These expenses were recognized at Express U.S. Domestic, Express International, and Corporate, other, and eliminations.
(4) These expenses were recognized at Express U.S. Domestic and Corporate, other, and eliminations.
-25-
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
RECASTED TO REFLECT CHANGE IN FISCAL YEAR END TO DECEMBER 31
RECASTED TO PRESENT FEDEX FREIGHT AS DISCONTINUED OPERATIONS
RECASTED TO PRESENT NEW SEGMENT REPORTING STRUCTURE
(IN MILLIONS, EXCEPT OPERATING MARGIN AMOUNTS)
(unaudited)
SECOND QUARTER CALENDAR 2025
FedEx Corporation
Diluted
Earnings
Per Share
Operating
Income
Taxes(1)
Net
Income(2)
Dollars in millions, except EPS
Income
Margin
GAAP measure
$
897
4.5
%
$
315
$
920
$
3.85
Business optimization and realignment costs(3)
113
0.6
%
26
87
0.36
Fiscal year change costs(4)
1
—
—
1
—
Aircraft impairment charges(4)
21
0.1
%
5
16
0.07
International regulatory matter(5)
50
0.3
%
(12)
62
0.26
MTM retirement plans accounting adjustment(6)
—
—
(101)
(317)
(1.34)
Non-GAAP measure
$
1,082
5.5
%
$
233
$
769
$
3.20
Express U.S. Domestic Segment
Operating
Dollars in millions
Income
Margin
GAAP measure
$
982
7.6
%
Business optimization and realignment costs(3)
54
0.4
%
Fiscal year change costs(4)
1
—
Aircraft impairment charges(4)
20
0.2
%
Non-GAAP measure
$
1,057
8.2
%
Express International Segment
Operating
Dollars in millions
Income
Margin
GAAP measure
$
47
0.8
%
Business optimization and realignment costs(3)
16
0.3
%
International regulatory matter(5)
50
0.8
%
Non-GAAP measure
$
113
1.9
%
(1) Income taxes are based on the company’s approximate statutory tax rates applicable to each transaction.
(2) Effect of “Other income (expense)” on net income amount not shown.
(3) These expenses were recognized at Express U.S. Domestic, Express International, and Corporate, other, and eliminations.
(4) These expenses were recognized at Express U.S. Domestic and Corporate, other, and eliminations.
(5) These expenses were recognized at Express International.
(6) These expenses were recognized at Corporate, other, and eliminations.
-26-
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
RECASTED TO REFLECT CHANGE IN FISCAL YEAR END TO DECEMBER 31
RECASTED TO PRESENT FEDEX FREIGHT AS DISCONTINUED OPERATIONS
RECASTED TO PRESENT NEW SEGMENT REPORTING STRUCTURE
(IN MILLIONS, EXCEPT OPERATING MARGIN AMOUNTS)
(unaudited)
FIRST QUARTER CALENDAR 2025
FedEx Corporation
Diluted
Earnings
Per Share
Operating
Income
Taxes(1)
Net
Income(2)
Dollars in millions, except EPS
Income
Margin
GAAP measure
$
751
4.0
%
$
122
$
530
$
2.19
Business optimization and realignment costs(3)
157
0.8
%
37
120
0.50
Legacy FedEx Ground legal matter(4)
(12)
(0.1)
%
(3)
(9)
(0.04)
International regulatory matter(5)
50
0.3
%
12
38
0.16
Non-GAAP measure
$
946
5.0
%
$
168
$
679
$
2.81
Express U.S. Domestic Segment
Operating
Dollars in millions
Income
Margin
GAAP measure
$
780
6.3
%
Business optimization and realignment costs(3)
67
0.5
%
Legacy FedEx Ground legal matter(4)
(12)
(0.1)
%
Non-GAAP measure
$
835
6.7
%
Express International Segment
Operating
Dollars in millions
Income
Margin
GAAP measure
$
87
1.5
%
Business optimization and realignment costs(3)
46
0.8
%
International regulatory matter(5)
50
0.8
%
Non-GAAP measure
$
183
3.1
%
(1) Income taxes are based on the company’s approximate statutory tax rates applicable to each transaction.
(2) Effect of “Other income (expense)” on net income amount not shown.
(3) These expenses were recognized at Express U.S. Domestic, Express International, and Corporate, other, and eliminations.
(4) These expenses were recognized at Express U.S. Domestic.
(5) These expenses were recognized at Express International.
-27-
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
RECASTED TO REFLECT CHANGE IN FISCAL YEAR END TO DECEMBER 31
RECASTED TO PRESENT FEDEX FREIGHT AS DISCONTINUED OPERATIONS
RECASTED TO PRESENT NEW SEGMENT REPORTING STRUCTURE
(IN MILLIONS, EXCEPT OPERATING MARGIN AMOUNTS)
(unaudited)
FULL YEAR CALENDAR 2024
FedEx Corporation
Diluted
Earnings
Per Share
Operating
Income
Taxes(1)
Net
Income(2)
Dollars in millions, except EPS
Income
Margin
GAAP measure
$
3,272
4.1
%
$
916
$
2,646
$
10.74
Business optimization and realignment costs(3)
815
1.1
%
193
622
2.52
Aircraft impairment charges(4)
157
0.2
%
37
120
0.49
Legacy FedEx Ground legal matter(5)
(57)
(0.1)
%
(13)
(44)
(0.18)
MTM retirement plans accounting adjustment(5)
—
—
(125)
(397)
(1.61)
Non-cash state tax impact(5)
—
—
(54)
54
0.22
Non-GAAP measure
$
4,187
5.3
%
$
954
$
3,001
$
12.18
Express U.S. Domestic Segment
Operating
Dollars in millions
Income
Margin
GAAP measure
$
3,365
6.5
%
Business optimization and realignment costs(3)
368
0.7
%
Aircraft impairment charges(4)
153
0.3
%
Non-GAAP measure
$
3,886
7.5
%
Express International Segment
Operating
Dollars in millions
Income
Margin
GAAP measure
$
544
2.2
%
Business optimization and realignment costs(3)
224
0.9
%
Aircraft impairment charges(4)
4
—
Non-GAAP measure
$
772
3.1
%
(1) Income taxes are based on the company’s approximate statutory tax rates applicable to each transaction.
(2) Effect of “Other income (expense)” on net income amount not shown.
(3) These expenses were recognized at Express U.S. Domestic, Express International, and Corporate, other, and eliminations.
(4) These expenses were recognized at Express U.S. Domestic and Express International.
(5) These expenses were recognized at Corporate, other, and eliminations.
-28-
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
RECASTED TO REFLECT CHANGE IN FISCAL YEAR END TO DECEMBER 31
RECASTED TO PRESENT FEDEX FREIGHT AS DISCONTINUED OPERATIONS
RECASTED TO PRESENT NEW SEGMENT REPORTING STRUCTURE
(IN MILLIONS, EXCEPT OPERATING MARGIN AMOUNTS)
(unaudited)
FOURTH QUARTER CALENDAR 2024
FedEx Corporation
Diluted
Earnings
Per Share
Operating
Income
Taxes(1)
Net
Income(2)
Dollars in millions, except EPS
Income
Margin
GAAP measure
$
1,268
6.0
%
$
287
$
896
$
3.69
Business optimization and realignment costs(3)
286
1.3
%
68
218
0.90
Non-GAAP measure
$
1,554
7.3
%
$
355
$
1,114
$
4.59
Express U.S. Domestic Segment
Operating
Dollars in millions
Income
Margin
GAAP measure
$
1,159
8.3
%
Business optimization and realignment costs(3)
92
0.7
%
Non-GAAP measure
$
1,251
9.0
%
Express International Segment
Operating
Dollars in millions
Income
Margin
GAAP measure
$
264
4.0
%
Business optimization and realignment costs(3)
157
2.4
%
Non-GAAP measure
$
421
6.4
%
(1) Income taxes are based on the company’s approximate statutory tax rates applicable to each transaction.
(2) Effect of “Other income (expense)” on net income amount not shown.
(3) These expenses were recognized at Express U.S. Domestic, Express International, and Corporate, other, and eliminations.
-29-
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
RECASTED TO REFLECT CHANGE IN FISCAL YEAR END TO DECEMBER 31
RECASTED TO PRESENT FEDEX FREIGHT AS DISCONTINUED OPERATIONS
RECASTED TO PRESENT NEW SEGMENT REPORTING STRUCTURE
(IN MILLIONS, EXCEPT OPERATING MARGIN AMOUNTS)
(unaudited)
THIRD QUARTER CALENDAR 2024
FedEx Corporation
Diluted
Earnings
Per Share
Operating
Income
Taxes(1)
Net
Income(2)
Dollars in millions, except EPS
Income
Margin
GAAP measure
$
538
2.8
%
$
133
$
383
$
1.55
Business optimization and realignment costs(3)
187
0.9
%
44
143
0.58
Non-GAAP measure
$
725
3.7
%
$
177
$
526
$
2.13
Express U.S. Domestic Segment
Operating
Dollars in millions
Income
Margin
GAAP measure
$
684
5.5
%
Business optimization and realignment costs(3)
72
0.6
%
Non-GAAP measure
$
756
6.1
%
Express International Segment
Operating
Dollars in millions
Income
Margin
GAAP measure
$
32
0.5
%
Business optimization and realignment costs(3)
45
0.7
%
Non-GAAP measure
$
77
1.2
%
(1) Income taxes are based on the company’s approximate statutory tax rates applicable to each transaction.
(2) Effect of “Other income (expense)” on net income amount not shown.
(3) These expenses were recognized at Express U.S. Domestic, Express International, and Corporate, other, and eliminations.
-30-
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
RECASTED TO REFLECT CHANGE IN FISCAL YEAR END TO DECEMBER 31
RECASTED TO PRESENT FEDEX FREIGHT AS DISCONTINUED OPERATIONS
RECASTED TO PRESENT NEW SEGMENT REPORTING STRUCTURE
(IN MILLIONS, EXCEPT OPERATING MARGIN AMOUNTS)
(unaudited)
SECOND QUARTER CALENDAR 2024
FedEx Corporation
Diluted
Earnings
Per Share
Operating
Income
Taxes(1)
Net
Income(2)
Dollars in millions, except EPS
Income
Margin
GAAP measure
$
634
3.3
%
$
294
$
781
$
3.15
Business optimization and realignment costs(3)
159
0.8
%
38
121
0.49
Aircraft impairment charges(4)
157
0.8
%
37
120
0.48
Legacy FedEx Ground legal matter(5)
(57)
(0.3)
%
(13)
(44)
(0.18)
MTM retirement plans accounting adjustment(5)
—
—
(125)
(397)
(1.60)
Remeasurement of state deferred income taxes under one FedEx structure(5)
—
—
(54)
54
0.22
Non-GAAP measure
$
893
4.6
%
$
177
$
635
$
2.56
Express U.S. Domestic Segment
Operating
Dollars in millions
Income
Margin
GAAP measure
$
658
5.2
%
Business optimization and realignment costs(3)
130
1.0
%
Aircraft impairment charges(4)
153
1.2
%
Non-GAAP measure
$
941
7.4
%
Express International Segment
Operating
Dollars in millions
Income
Margin
GAAP measure
$
110
1.8
%
Business optimization and realignment costs(3)
(30)
(0.5)
%
Aircraft impairment charges(4)
4
0.1
%
Non-GAAP measure
$
84
1.4
%
(1) Income taxes are based on the company’s approximate statutory tax rates applicable to each transaction.
(2) Effect of “Other income (expense)” on net income amount not shown.
(3) These expenses were recognized at Express U.S. Domestic, Express International, and Corporate, other, and eliminations.
(4) These expenses were recognized at Express U.S. Domestic and Express International.
(5) These expenses were recognized at Corporate, other, and eliminations.
-31-
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
RECASTED TO REFLECT CHANGE IN FISCAL YEAR END TO DECEMBER 31
RECASTED TO PRESENT FEDEX FREIGHT AS DISCONTINUED OPERATIONS
RECASTED TO PRESENT NEW SEGMENT REPORTING STRUCTURE
(IN MILLIONS, EXCEPT OPERATING MARGIN AMOUNTS)
(unaudited)
FIRST QUARTER CALENDAR 2024
FedEx Corporation
Diluted
Earnings
Per Share
Operating
Income
Taxes(1)
Net
Income(2)
Dollars in millions, except EPS
Income
Margin
GAAP measure
$
832
4.4
%
$
202
$
586
$
2.35
Business optimization and realignment costs(3)
183
1.0
%
43
140
0.56
Non-GAAP measure
$
1,015
5.4
%
$
245
$
726
$
2.91
Express U.S. Domestic Segment
Operating
Dollars in millions
Income
Margin
GAAP measure
$
864
7.0
%
Business optimization and realignment costs(3)
74
0.6
%
Non-GAAP measure
$
938
7.6
%
Express International Segment
Operating
Dollars in millions
Income
Margin
GAAP measure
$
138
2.3
%
Business optimization and realignment costs(3)
52
0.9
%
Non-GAAP measure
$
190
3.2
%
(1) Income taxes are based on the company’s approximate statutory tax rates applicable to each transaction.
(2) Effect of “Other income (expense)” on net income amount not shown.
(3) These expenses were recognized at Express U.S. Domestic, Express International, and Corporate, other, and eliminations.
-32-
Mentions · how they’re counted
| Category | Underlined | Word counter | Model’s count |
|---|---|---|---|
| AI AI, artificial intelligence, generative AI, machine learning, large language model, LLM | 1 | 1 | 1 |
| Layoffs layoffs, RIF, headcount reduction, workforce optimization, restructuring | 0 | — | 1 |
| Recession recession, downturn, contraction, slowdown | 0 | 0 | 0 |
| Tariffs tariff, trade war, trade barriers, trade restrictions, trade policy | 3 | 3 | 3 |
| Buybacks share repurchase, buyback program | 0 | — | 1 |
Underlines use the same word lists the scores use. AI, recession and tariffs follow Palanor’s word counter, so those counts match it exactly on the same text. Layoffs and buybacks use the terms the model was given. The model’s count is an estimate by meaning, not by string, so it can differ from the underlines.
Not placed in the text
These quotes are stored with a score, but no passage here matches them closely enough to highlight. Rather than point at the wrong passage, they are listed as stored.
Theme · Business optimization costs
“Business optimization costs relate to transformation initiatives aimed to improve long-term profitability, drive efficiency, and transform digital capabilities.”
Theme · Non-GAAP adjustments
“These adjusted financial measures facilitate analysis and comparisons of FedEx's ongoing business operations because they exclude items that may not be indicative of core operating performance.”
Source: SEC EDGAR · public domain · Highlights by Palanor