Stock Analysis on Net
Stock Analysis on Net

FedEx Corp. (NYSE:FDX)

Common-Size Income Statement

FedEx Corp., common-size consolidated income statement

Microsoft Excel
12 months ended: May 31, 2026 May 31, 2025 May 31, 2024 May 31, 2023 May 31, 2022 May 31, 2021
Revenue 100.00 100.00 100.00 100.00 100.00 100.00
Salaries and employee benefits -35.73 -35.52 -35.31 -34.41 -34.28 -35.94
Purchased transportation -24.94 -24.76 -23.86 -24.17 -25.79 -25.81
Rentals and landing fees -5.16 -5.29 -5.21 -5.26 -5.04 -4.95
Depreciation and amortization -4.61 -4.85 -4.89 -4.63 -4.25 -4.52
Fuel -4.28 -4.29 -5.37 -6.55 -5.47 -3.43
Maintenance and repairs -3.52 -3.69 -3.75 -3.72 -3.61 -3.96
Separation and other costs -0.81 -0.04 0.00 0.00 0.00 0.00
Business optimization and realignment costs -0.39 -0.86 -0.66 -0.34 -0.30 -0.14
Goodwill and other asset impairment charges -0.02 -0.02 -0.18 -0.13 0.00 0.00
Other -14.78 -14.74 -14.43 -15.34 -14.59 -14.27
Operating expenses -94.23% -94.07% -93.66% -94.55% -93.32% -93.02%
Operating income 5.77% 5.93% 6.34% 5.45% 6.68% 6.98%
Interest expense -1.02 -0.90 -0.85 -0.77 -0.74 -0.94
Other retirement plans income (expense) 0.93 0.81 0.82 1.17 -0.78 2.36
Interest income 0.46 0.41 0.42 0.22 0.06 0.06
Loss on debt extinguishment 0.00 0.00 0.00 0.00 0.00 -0.47
Other, net -0.02 -0.07 -0.08 -0.12 0.01 -0.04
Other income (expense) 0.35% 0.25% 0.32% 0.50% -1.44% 0.97%
Income before income taxes 6.12% 6.19% 6.66% 5.95% 5.24% 7.95%
Provision for income taxes -1.44 -1.53 -1.72 -1.54 -1.14 -1.72
Net income 4.68% 4.65% 4.94% 4.41% 4.09% 6.23%

Based on: 10-K (reporting date: 2026-05-31), 10-K (reporting date: 2025-05-31), 10-K (reporting date: 2024-05-31), 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31).

The common-size income statement reveals a business model characterized by high operating leverage and tight margins, with operating expenses consistently consuming between 93.02% and 94.55% of total revenue over the analyzed period. While revenue remains the baseline, the net income margin has experienced a general decline from its 2021 peak, followed by a period of relative stabilization.

Operating Expense Trends
Salaries and employee benefits constitute the largest single expenditure, remaining relatively stable but showing a slight upward trajectory from 34.28% in 2022 to 35.73% by 2026. Purchased transportation expenses showed a period of efficiency, decreasing from 25.81% in 2021 to a low of 23.86% in 2024, before rising again to 24.94% by 2026.
Fuel costs exhibited significant volatility, peaking at 6.55% of revenue in 2023 before trending downward to 4.28% by 2026. Other fixed and semi-variable costs, such as rentals, landing fees, and depreciation, remained largely consistent, typically fluctuating within a narrow range of 4% to 5% of revenue.
Business optimization and realignment costs peaked at 0.86% in 2025, suggesting an increase in structural adjustments during that period.
Profitability Analysis
Operating income margin peaked at 6.98% in 2021 and reached a trough of 5.45% in 2023. A partial recovery occurred in 2024 at 6.34%, but a downward trend resumed toward the end of the period, ending at 5.77% in 2026.
Net income margin mirrored this volatility, falling from 6.23% in 2021 to 4.09% in 2022. The margin subsequently stabilized, fluctuating between 4.41% and 4.94% from 2023 through 2026, indicating a level of resilience in bottom-line profitability despite operating pressure.
Non-Operating and Tax Items
Interest expense as a percentage of revenue has trended upward, rising from 0.74% in 2022 to 1.02% in 2026, indicating an increase in the relative cost of debt servicing.
Other retirement plan income and expenses demonstrated significant instability, shifting from a gain of 2.36% in 2021 to an expense of 0.78% in 2022, before returning to positive contributions around 0.8% to 0.9% in the final three years.
The provision for income taxes has remained relatively stable, generally ranging between 1.14% and 1.72% of revenue.

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