Operating Profit Margin
since 2005
Calculation
FedEx Corp., operating profit margin, long-term trends, calculation
| Operating profit margin | = | 100 | × | Operating income1 | ÷ | Revenue1 | |
|---|---|---|---|---|---|---|---|
| May 31, 2026 | 5.77% | = | 100 | × | 5,463) | ÷ | 94,720) |
| May 31, 2025 | 5.93% | = | 100 | × | 5,217) | ÷ | 87,926) |
| May 31, 2024 | 6.34% | = | 100 | × | 5,559) | ÷ | 87,693) |
| May 31, 2023 | 5.45% | = | 100 | × | 4,912) | ÷ | 90,155) |
| May 31, 2022 | 6.68% | = | 100 | × | 6,245) | ÷ | 93,512) |
| May 31, 2021 | 6.98% | = | 100 | × | 5,857) | ÷ | 83,959) |
| May 31, 2020 | 3.49% | = | 100 | × | 2,417) | ÷ | 69,217) |
| May 31, 2019 | 6.41% | = | 100 | × | 4,466) | ÷ | 69,693) |
| May 31, 2018 | 7.44% | = | 100 | × | 4,870) | ÷ | 65,450) |
| May 31, 2017 | 8.35% | = | 100 | × | 5,037) | ÷ | 60,319) |
| May 31, 2016 | 6.11% | = | 100 | × | 3,077) | ÷ | 50,365) |
| May 31, 2015 | 3.93% | = | 100 | × | 1,867) | ÷ | 47,453) |
| May 31, 2014 | 7.56% | = | 100 | × | 3,446) | ÷ | 45,567) |
| May 31, 2013 | 5.76% | = | 100 | × | 2,551) | ÷ | 44,287) |
| May 31, 2012 | 7.46% | = | 100 | × | 3,186) | ÷ | 42,680) |
| May 31, 2011 | 6.05% | = | 100 | × | 2,378) | ÷ | 39,304) |
| May 31, 2010 | 5.75% | = | 100 | × | 1,998) | ÷ | 34,734) |
| May 31, 2009 | 2.10% | = | 100 | × | 747) | ÷ | 35,497) |
| May 31, 2008 | 5.47% | = | 100 | × | 2,075) | ÷ | 37,953) |
| May 31, 2007 | 9.30% | = | 100 | × | 3,276) | ÷ | 35,214) |
| May 31, 2006 | 9.33% | = | 100 | × | 3,014) | ÷ | 32,294) |
| May 31, 2005 | 8.42% | = | 100 | × | 2,471) | ÷ | 29,363) |
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), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31), 10-K (reporting date: 2018-05-31), 10-K (reporting date: 2017-05-31), 10-K (reporting date: 2016-05-31), 10-K (reporting date: 2015-05-31), 10-K (reporting date: 2014-05-31), 10-K (reporting date: 2013-05-31), 10-K (reporting date: 2012-05-31), 10-K (reporting date: 2011-05-31), 10-K (reporting date: 2010-05-31), 10-K (reporting date: 2009-05-31), 10-K (reporting date: 2008-05-31), 10-K (reporting date: 2007-05-31), 10-K (reporting date: 2006-05-31), 10-K (reporting date: 2005-05-31).
1 US$ in millions
The operating profit margin exhibits significant volatility over the observed twenty-one-year period, characterized by cyclical contractions and recoveries despite a consistent long-term increase in total revenue.
- Profitability Volatility and Cyclicality
- Significant margin compressions occurred during three distinct periods. The most severe decline took place between 2007 and 2009, where the operating profit margin fell from 9.30% to a period low of 2.10%. Subsequent sharp declines are noted in 2015 (3.93%) and 2020 (3.49%), indicating a pattern of sensitivity to external economic shocks or operational disruptions.
- Revenue Growth versus Efficiency
- A strong upward trend in revenue is evident, growing from 29,363 million USD in 2005 to a projected 94,720 million USD by 2026. However, this expansion in scale has not translated into sustained margin growth. While revenue more than tripled over the period, the operating profit margin failed to maintain its early peaks, often regressing to a range between 5% and 7%.
- Long-term Margin Trajectory
- After reaching a peak of 9.33% in 2006, the operating profit margin has generally trended lower. A recovery phase peaked in 2017 at 8.35%, but the subsequent years show a gradual decline. From a high of 6.98% in 2021, the margin is projected to decline steadily to 5.77% by 2026, suggesting a trend of diminishing operating efficiency relative to the growth in top-line revenue.
- Operating Income Performance
- Absolute operating income has increased from 2,471 million USD in 2005 to a projected 5,463 million USD in 2026. Despite the margin fluctuations, the absolute profitability remains higher than in the first decade of the data set, though it peaked in 2022 at 6,245 million USD before entering a period of relative stabilization.
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Comparison to Competitors
FedEx Corp., operating profit margin, long-term trends, comparison to competitors
| FedEx Corp. | Uber Technologies Inc. | Union Pacific Corp. | United Airlines Holdings Inc. | United Parcel Service Inc. | |
|---|---|---|---|---|---|
| May 31, 2026 | 5.77% | — | — | — | — |
| May 31, 2025 | 5.93% | 10.70% | 40.17% | 7.98% | 8.87% |
| May 31, 2024 | 6.34% | 6.36% | 40.05% | 8.93% | 9.30% |
| May 31, 2023 | 5.45% | 2.98% | 37.65% | 7.84% | 10.05% |
| May 31, 2022 | 6.68% | -5.75% | 39.87% | 5.20% | 13.05% |
| May 31, 2021 | 6.98% | -21.97% | 42.83% | -4.15% | 13.17% |
| May 31, 2020 | 3.49% | -43.66% | 40.11% | -41.41% | 9.08% |
| May 31, 2019 | 6.41% | -60.76% | 39.40% | 9.94% | 10.52% |
| May 31, 2018 | 7.44% | — | 37.30% | 7.97% | 9.77% |
| May 31, 2017 | 8.35% | — | 37.95% | 9.27% | 11.43% |
| May 31, 2016 | 6.11% | — | 36.47% | 11.87% | 8.98% |
| May 31, 2015 | 3.93% | — | 36.91% | 13.64% | 13.14% |
| May 31, 2014 | 7.56% | — | 36.49% | 6.10% | 8.53% |
| May 31, 2013 | 5.76% | — | 33.90% | 3.26% | 12.69% |
| May 31, 2012 | 7.46% | — | 32.23% | 0.10% | 2.48% |
| May 31, 2011 | 6.05% | — | 29.27% | 4.91% | 11.45% |
| May 31, 2010 | 5.75% | — | 29.36% | 4.20% | 11.86% |
| May 31, 2009 | 2.10% | — | 23.98% | -0.99% | 8.39% |
| May 31, 2008 | 5.47% | — | 22.68% | -21.98% | 10.45% |
| May 31, 2007 | 9.30% | — | 20.73% | 5.15% | 1.16% |
| May 31, 2006 | 9.33% | — | 18.51% | 2.31% | 13.95% |
| May 31, 2005 | 8.42% | — | 13.22% | -1.26% | 14.43% |
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), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31), 10-K (reporting date: 2018-05-31), 10-K (reporting date: 2017-05-31), 10-K (reporting date: 2016-05-31), 10-K (reporting date: 2015-05-31), 10-K (reporting date: 2014-05-31), 10-K (reporting date: 2013-05-31), 10-K (reporting date: 2012-05-31), 10-K (reporting date: 2011-05-31), 10-K (reporting date: 2010-05-31), 10-K (reporting date: 2009-05-31), 10-K (reporting date: 2008-05-31), 10-K (reporting date: 2007-05-31), 10-K (reporting date: 2006-05-31), 10-K (reporting date: 2005-05-31).