Analysis of Reportable Segments
FedEx Corp. operates in 2 segments: Federal Express and FedEx Freight.
Segment Profit Margin
FedEx Corp., profit margin by reportable segment
| May 31, 2026 | May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | |
|---|---|---|---|---|---|---|
| Federal Express | 7.19% | 6.49% | 6.45% | 5.53% | 7.02% | 8.27% |
| FedEx Freight | 7.00% | 16.75% | 19.31% | 19.20% | 17.45% | 12.83% |
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 segment profit margins exhibit divergent trajectories between the Federal Express and FedEx Freight divisions over the analyzed period. While one segment demonstrates a cyclical recovery after an initial decline, the other undergoes a period of significant expansion followed by a sharp contraction.
- Federal Express Profit Margin
- A contraction is observed from 2021 to 2023, with margins declining from 8.27% to a period low of 5.53%. Following this trough, a consistent upward trend is evident, with margins recovering to 6.45% in 2024 and continuing a steady climb to reach 7.19% by 2026.
- FedEx Freight Profit Margin
- This segment experienced substantial margin growth between 2021 and 2024, increasing from 12.83% to a peak of 19.31%. However, this trend reverses sharply after 2024, with the margin dropping to 16.75% in 2025 and experiencing a severe decline to 7.00% by 2026.
- Comparative Segment Performance
- Historically, FedEx Freight maintained a significant profitability advantage over Federal Express. However, by 2026, this disparity is eliminated, as the profit margins of both segments converge, with Federal Express slightly surpassing FedEx Freight at 7.19% compared to 7.00%.
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Segment Profit Margin: Federal Express
FedEx Corp.; Federal Express; segment profit margin calculation
| May 31, 2026 | May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating income (loss) | 5,912) | 4,885) | 4,819) | 4,193) | 5,564) | 6,003) |
| Revenue | 82,273) | 75,304) | 74,663) | 75,884) | 79,299) | 72,606) |
| Segment Profitability Ratio | ||||||
| Segment profit margin1 | 7.19% | 6.49% | 6.45% | 5.53% | 7.02% | 8.27% |
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).
1 2026 Calculation
Segment profit margin = 100 × Operating income (loss) ÷ Revenue
= 100 × 5,912 ÷ 82,273 = 7.19%
The Federal Express segment experienced a period of margin contraction between 2021 and 2023, followed by a phased recovery and a projected upward trajectory in profitability through 2026. This cycle is characterized by an initial decline in operational efficiency and subsequent stabilization and growth.
- Revenue Trends
- Revenue exhibited volatility over the analyzed period, rising from US$ 72,606 million in 2021 to a peak of US$ 79,299 million in 2022. A downward trend followed, with revenue dipping to US$ 74,663 million by 2024. However, a recovery is evident in the subsequent periods, with a projected increase to US$ 82,273 million by May 31, 2026.
- Operating Income Performance
- Operating income followed a U-shaped trajectory. After starting at US$ 6,003 million in 2021, it declined for two consecutive years, reaching a trough of US$ 4,193 million in 2023. A sustained recovery began in 2024, with operating income climbing to US$ 4,819 million and forecasted to reach US$ 5,912 million by 2026.
- Segment Profit Margin Analysis
- The profit margin saw a significant contraction from 8.27% in 2021 to a low of 5.53% in 2023, reflecting a period where operating costs outpaced revenue growth. Starting in 2024, a trend of margin expansion is observed, with the ratio improving to 6.45% in 2024 and 6.49% in 2025. The trajectory is expected to continue upward, reaching 7.19% by May 31, 2026, although this remains below the 2021 peak.
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Segment Profit Margin: FedEx Freight
FedEx Corp.; FedEx Freight; segment profit margin calculation
| May 31, 2026 | May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating income (loss) | 616) | 1,489) | 1,821) | 1,936) | 1,663) | 1,005) |
| Revenue | 8,795) | 8,892) | 9,429) | 10,084) | 9,532) | 7,833) |
| Segment Profitability Ratio | ||||||
| Segment profit margin1 | 7.00% | 16.75% | 19.31% | 19.20% | 17.45% | 12.83% |
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).
1 2026 Calculation
Segment profit margin = 100 × Operating income (loss) ÷ Revenue
= 100 × 616 ÷ 8,795 = 7.00%
The FedEx Freight segment exhibited a distinct cycle of growth followed by a significant contraction in financial performance between May 31, 2021, and May 31, 2026. Initial gains in revenue and operating income culminated in a peak period around 2023 and 2024, after which a sharp decline in profitability occurred.
- Revenue Trends
- Revenue experienced a steady increase from 7,833 million US$ in 2021 to a peak of 10,084 million US$ in 2023. Following this peak, a consistent downward trajectory is observed, with revenue decreasing to 8,795 million US$ by May 31, 2026.
- Operating Income Performance
- Operating income grew substantially from 1,005 million US$ in 2021 to 1,936 million US$ in 2023. While the decline began in 2024, the most precipitous drop occurred between 2025 and 2026, where income fell from 1,489 million US$ to 616 million US$, representing a severe reduction in absolute earnings.
- Segment Profit Margin Analysis
- The profit margin showed an upward trend for the first four years, rising from 12.83% in 2021 to a peak of 19.31% in 2024. This indicates an initial period of improved operational efficiency or pricing power. However, this trend reversed sharply in the final two years, with the margin contracting to 16.75% in 2025 and collapsing to 7.00% by May 31, 2026.
- Correlation and Operational Insight
- The data reveals that profit margins remained resilient in 2024 even as revenue began to decline, suggesting temporary cost control measures. However, the simultaneous drop in both revenue and operating income in 2026 indicates that the segment faced substantial headwinds that eroded both the top line and the bottom line, leading to a margin compression of more than 12 percentage points from its peak.
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Segment Return on Assets (Segment ROA)
FedEx Corp., ROA by reportable segment
| May 31, 2026 | May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | |
|---|---|---|---|---|---|---|
| Federal Express | 7.03% | 6.59% | 6.58% | 4.93% | 6.28% | 7.14% |
| FedEx Freight | 8.96% | 11.54% | 15.68% | 18.59% | 18.68% | 13.63% |
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).
An analysis of segment return on assets (ROA) reveals divergent performance trajectories between the Federal Express and FedEx Freight segments from 2021 through 2026. While Federal Express demonstrates a recovery pattern following a mid-period decline, FedEx Freight exhibits a significant peak followed by a sustained contraction in asset efficiency.
- Federal Express Segment Performance
- The ROA for Federal Express experienced an initial decline, falling from 7.14% in 2021 to a low of 4.93% in 2023. However, a consistent recovery trend followed, with the ratio increasing to 6.58% in 2024 and reaching 7.03% by 2026. This movement indicates a return to baseline efficiency levels observed at the start of the period.
- FedEx Freight Segment Performance
- FedEx Freight showed strong initial growth, with ROA rising from 13.63% in 2021 to a peak of 18.68% in 2022. After maintaining a high level of 18.59% in 2023, the segment entered a period of steady decline. The ROA dropped to 15.68% in 2024, 11.54% in 2025, and further decreased to 8.96% by 2026, marking a significant reduction in asset productivity relative to its peak.
- Comparative Asset Efficiency
- Throughout the majority of the analyzed period, FedEx Freight maintained a substantially higher ROA than Federal Express. However, the gap between the two segments narrowed considerably by 2026. The convergence is driven by the simultaneous recovery of the Federal Express segment and the weakening return on assets within the FedEx Freight segment.
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Segment ROA: Federal Express
FedEx Corp.; Federal Express; segment ROA calculation
| May 31, 2026 | May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating income (loss) | 5,912) | 4,885) | 4,819) | 4,193) | 5,564) | 6,003) |
| Segment assets | 84,047) | 74,154) | 73,259) | 85,128) | 88,638) | 84,129) |
| Segment Profitability Ratio | ||||||
| Segment ROA1 | 7.03% | 6.59% | 6.58% | 4.93% | 6.28% | 7.14% |
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).
1 2026 Calculation
Segment ROA = 100 × Operating income (loss) ÷ Segment assets
= 100 × 5,912 ÷ 84,047 = 7.03%
The Federal Express segment exhibited a cyclical performance trend between May 31, 2021, and May 31, 2026, characterized by an initial contraction in profitability and asset efficiency followed by a period of strategic recovery and expansion.
- Operating Income Trends
- Operating income experienced a steady decline from 6,003 million USD in 2021 to a trough of 4,193 million USD in 2023. Following this decline, a recovery phase began, with income rising to 4,819 million USD in 2024 and continuing an upward trajectory to reach 5,912 million USD by 2026, nearly returning to 2021 levels.
- Segment Asset Management
- The asset base remained relatively stable between 2021 and 2023, peaking at 88,638 million USD in 2022. A significant reduction in assets occurred in 2024, where the base dropped to 73,259 million USD, suggesting a period of asset optimization or divestment. This was followed by a subsequent increase in investment, with assets returning to 84,047 million USD by 2026.
- Return on Assets (ROA) Dynamics
- Segment ROA mirrored the volatility of operating income, falling from 7.14% in 2021 to a minimum of 4.93% in 2023. The sharp rebound to 6.58% in 2024 was driven by the dual effect of recovering operating income and a reduced asset base, which enhanced asset productivity. The ROA remained stable at 6.59% in 2025 before climbing to 7.03% in 2026, indicating a return to historical efficiency levels despite the increase in total segment assets.
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Segment ROA: FedEx Freight
FedEx Corp.; FedEx Freight; segment ROA calculation
| May 31, 2026 | May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating income (loss) | 616) | 1,489) | 1,821) | 1,936) | 1,663) | 1,005) |
| Segment assets | 6,873) | 12,899) | 11,615) | 10,416) | 8,904) | 7,371) |
| Segment Profitability Ratio | ||||||
| Segment ROA1 | 8.96% | 11.54% | 15.68% | 18.59% | 18.68% | 13.63% |
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).
1 2026 Calculation
Segment ROA = 100 × Operating income (loss) ÷ Segment assets
= 100 × 616 ÷ 6,873 = 8.96%
The financial trajectory of the FedEx Freight segment reveals a period of significant expansion and peak efficiency between 2021 and 2023, followed by a steady decline in profitability and a sharp contraction in the asset base by 2026.
- Operating Income Trends
- Operating income experienced a period of rapid growth, increasing from US$ 1,005 million in 2021 to a peak of US$ 1,936 million in 2023. This growth trend reversed after 2023, with earnings declining to US$ 1,489 million by 2025 and falling precipitously to US$ 616 million in 2026.
- Asset Base Dynamics
- Segment assets grew consistently for five consecutive years, rising from US$ 7,371 million in 2021 to a maximum of US$ 12,899 million in 2025. However, a substantial reduction occurred in 2026, with assets dropping to US$ 6,873 million, representing a significant contraction of the segment's resource base.
- Return on Assets (ROA) Performance
- The segment's ROA peaked at 18.68% in 2022. Following this peak, a consistent downward trend is observed, with the ratio falling to 15.68% in 2024 and 11.54% in 2025. By 2026, the ROA reached a period low of 8.96%. This decline suggests that from 2023 to 2025, asset growth outpaced income growth, and by 2026, the collapse in operating income exceeded the proportional reduction in assets.
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Segment Asset Turnover
FedEx Corp., asset turnover by reportable segment
| May 31, 2026 | May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | |
|---|---|---|---|---|---|---|
| Federal Express | 0.98 | 1.02 | 1.02 | 0.89 | 0.89 | 0.86 |
| FedEx Freight | 1.28 | 0.69 | 0.81 | 0.97 | 1.07 | 1.06 |
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 asset turnover ratios for the reportable segments demonstrate contrasting trajectories in operational efficiency from May 31, 2021, through May 31, 2026.
- Federal Express
- A consistent upward trend in asset utilization is observed from 2021 to 2024, with the ratio increasing from 0.86 to 1.02. This efficiency level remained stable through 2025 before experiencing a slight contraction to 0.98 by May 31, 2026. The overall movement indicates a period of improved asset productivity followed by a plateau and a marginal decline.
- FedEx Freight
- This segment experienced significant volatility over the analyzed period. After maintaining a stable ratio of approximately 1.06 to 1.07 between 2021 and 2022, a sustained decline occurred, with the ratio falling to 0.69 by May 31, 2025. This downward trend was abruptly reversed in 2026, as the ratio surged to 1.28, representing the highest efficiency peak recorded across both segments during the entire timeframe.
Comparative analysis indicates that Federal Express achieved more steady and predictable growth in asset turnover, whereas FedEx Freight underwent a period of declining efficiency followed by a substantial recovery in the final fiscal year.
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Segment Asset Turnover: Federal Express
FedEx Corp.; Federal Express; segment asset turnover calculation
| May 31, 2026 | May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenue | 82,273) | 75,304) | 74,663) | 75,884) | 79,299) | 72,606) |
| Segment assets | 84,047) | 74,154) | 73,259) | 85,128) | 88,638) | 84,129) |
| Segment Activity Ratio | ||||||
| Segment asset turnover1 | 0.98 | 1.02 | 1.02 | 0.89 | 0.89 | 0.86 |
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).
1 2026 Calculation
Segment asset turnover = Revenue ÷ Segment assets
= 82,273 ÷ 84,047 = 0.98
The analysis of the Federal Express segment indicates an overall improvement in asset utilization efficiency from 2021 through 2025, followed by a slight contraction in 2026. While revenue demonstrated volatility over the observed period, the segment asset turnover ratio was primarily influenced by strategic fluctuations in the asset base.
- Revenue Performance
- Revenue grew from US$ 72,606 million in 2021 to a peak of US$ 79,299 million in 2022. A downward trend followed, with revenue declining to US$ 74,663 million by May 31, 2024. However, a recovery is observed in the final two years, with revenue increasing to US$ 82,273 million by May 31, 2026.
- Segment Asset Trends
- The asset base expanded from US$ 84,129 million in 2021 to US$ 88,638 million in 2022. A significant reduction in assets occurred between 2023 and 2024, where the balance dropped from US$ 85,128 million to US$ 73,259 million. This lean asset structure was maintained through 2025 before increasing again to US$ 84,047 million by May 31, 2026.
- Segment Asset Turnover Analysis
- The asset turnover ratio improved from 0.86 in 2021 to 0.89 in 2022 and 2023. A notable increase to 1.02 was achieved in 2024 and 2025; this improvement was driven by the substantial reduction in segment assets rather than revenue growth, as revenue actually decreased during the 2023-2024 period. By May 31, 2026, the ratio declined to 0.98, reflecting a period where asset growth slightly outpaced revenue growth.
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Segment Asset Turnover: FedEx Freight
FedEx Corp.; FedEx Freight; segment asset turnover calculation
| May 31, 2026 | May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenue | 8,795) | 8,892) | 9,429) | 10,084) | 9,532) | 7,833) |
| Segment assets | 6,873) | 12,899) | 11,615) | 10,416) | 8,904) | 7,371) |
| Segment Activity Ratio | ||||||
| Segment asset turnover1 | 1.28 | 0.69 | 0.81 | 0.97 | 1.07 | 1.06 |
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).
1 2026 Calculation
Segment asset turnover = Revenue ÷ Segment assets
= 8,795 ÷ 6,873 = 1.28
The financial performance of the FedEx Freight segment is characterized by a period of asset expansion that initially coincided with revenue growth, followed by a divergence where asset utilization efficiency declined significantly before a sharp correction in the final period.
- Revenue Trajectory
- Revenue experienced an upward trend from 2021, peaking at 10,084 million US$ in 2023. Following this peak, a consistent downward trajectory was observed, with figures declining to 8,795 million US$ by 2026.
- Segment Asset Growth and Reduction
- Assets grew steadily from 7,371 million US$ in 2021 to a peak of 12,899 million US$ in 2025. This accumulation was abruptly reversed in 2026, when assets decreased to 6,873 million US$, representing a substantial reduction in the segment's asset base.
- Segment Asset Turnover Efficiency
- The asset turnover ratio remained relatively stable between 2021 and 2022 but entered a period of sustained decline from 2023 through 2025, falling from 0.97 to a low of 0.69. This trend indicates that asset growth outpaced revenue generation, leading to diminished operational efficiency. In 2026, the ratio surged to 1.28, a reversal driven primarily by the drastic reduction in segment assets rather than an increase in revenue.
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Segment Capital Expenditures to Depreciation
FedEx Corp., capital expenditures to depreciation by reportable segment
| May 31, 2026 | May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | |
|---|---|---|---|---|---|---|
| Federal Express | 0.88 | 0.94 | 1.22 | 1.50 | 1.84 | 1.68 |
| FedEx Freight | 0.84 | 1.05 | 1.14 | 1.44 | 0.79 | 0.77 |
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 analysis of capital expenditures relative to depreciation reveals a general transition from aggressive capital investment toward a phase of asset maintenance and expenditure reduction across both reportable segments.
- Federal Express
- This segment exhibited a peak ratio of 1.84 in 2022, indicating that capital spending significantly exceeded depreciation during that period. Following this peak, a consistent and steady downward trend is observed, with the ratio declining to 1.50 in 2023 and 1.22 in 2024. By 2025 and 2026, the ratio fell below the 1.0 threshold to 0.94 and 0.88, respectively, suggesting a strategic shift from expansionary investment to a reduction in capital outlays relative to asset wear.
- FedEx Freight
- Capital expenditure for this segment initially remained below depreciation levels in 2021 and 2022, with ratios of 0.77 and 0.79. A significant surge occurred in 2023, where the ratio peaked at 1.44, marking a period of intensified investment. This was followed by a gradual decrease to 1.14 in 2024 and 1.05 in 2025, eventually returning to a sub-1.0 level of 0.84 by 2026.
By the end of the observed period, both segments converge toward a ratio below 1.0, implying that capital expenditures are no longer exceeding the depreciation of existing assets. This synchronization suggests a broader organizational pivot toward optimizing current infrastructure and limiting new capital deployment.
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Segment Capital Expenditures to Depreciation: Federal Express
FedEx Corp.; Federal Express; segment capital expenditures to depreciation calculation
| May 31, 2026 | May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Capital expenditures | 3,349) | 3,505) | 4,591) | 5,480) | 6,341) | 5,461) |
| Depreciation and amortization | 3,799) | 3,722) | 3,754) | 3,655) | 3,439) | 3,251) |
| Segment Financial Ratio | ||||||
| Segment capital expenditures to depreciation1 | 0.88 | 0.94 | 1.22 | 1.50 | 1.84 | 1.68 |
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).
1 2026 Calculation
Segment capital expenditures to depreciation = Capital expenditures ÷ Depreciation and amortization
= 3,349 ÷ 3,799 = 0.88
The financial trajectory of the Federal Express segment indicates a transition from a period of aggressive capital investment toward a strategy of capital discipline and asset optimization. While the segment initially expanded its asset base, there is a clear and sustained reduction in capital spending relative to the consumption of existing assets.
- Capital Expenditure Trends
- Capital expenditures peaked in May 2022 at 6,341 million USD. Following this peak, a consistent downward trend is observed, with expenditures decreasing to 4,591 million USD by May 2024 and projected to reach 3,349 million USD by May 2026. This represents a significant reduction in the allocation of funds toward new assets and infrastructure.
- Depreciation and Amortization Stability
- Depreciation and amortization expenses have remained relatively stable with a gradual upward trajectory, rising from 3,251 million USD in May 2021 to a projected 3,799 million USD by May 2026. This steady increase reflects the ongoing accounting write-down of previously acquired long-term assets.
- Segment Capital Expenditures to Depreciation Ratio
- The ratio of capital expenditures to depreciation serves as a key indicator of investment intensity. The ratio peaked at 1.84 in May 2022, signaling that the segment was investing significantly more than the value of assets being depreciated. However, the ratio declined steadily thereafter, falling below the 1.0 threshold in May 2025 (0.94) and further to 0.88 by May 2026. This shift indicates that the segment is no longer replacing its assets at the rate of their depreciation, suggesting a pivot toward maintaining existing capacity rather than expanding the asset base.
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Segment Capital Expenditures to Depreciation: FedEx Freight
FedEx Corp.; FedEx Freight; segment capital expenditures to depreciation calculation
| May 31, 2026 | May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Capital expenditures | 379) | 437) | 461) | 557) | 319) | 320) |
| Depreciation and amortization | 450) | 416) | 404) | 387) | 406) | 417) |
| Segment Financial Ratio | ||||||
| Segment capital expenditures to depreciation1 | 0.84 | 1.05 | 1.14 | 1.44 | 0.79 | 0.77 |
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).
1 2026 Calculation
Segment capital expenditures to depreciation = Capital expenditures ÷ Depreciation and amortization
= 379 ÷ 450 = 0.84
The financial trajectory for the FedEx Freight segment from 2021 through 2026 demonstrates a distinct cycle of capital reinvestment, characterized by a period of aggressive spending followed by a gradual normalization of investment levels.
- Capital Expenditure Trends
- Investment levels remained relatively stagnant between 2021 and 2022, with expenditures holding steady at approximately US$ 320 million. A significant surge occurred in 2023, with capital expenditures peaking at US$ 557 million. This peak was followed by a consistent downward trend over the subsequent three years, with spending decreasing to US$ 461 million in 2024, US$ 437 million in 2025, and reaching US$ 379 million by 2026.
- Depreciation and Amortization Patterns
- Depreciation and amortization expenses remained stable throughout the period, exhibiting a slight U-shaped trend. After a minor decrease from US$ 417 million in 2021 to a low of US$ 387 million in 2023, expenses began to rise steadily, reaching a period high of US$ 450 million by 2026. This increase aligns with the expected accounting impact of the heightened capital spending observed in 2023.
- Capital Expenditures to Depreciation Ratio
- The ratio reveals a shift from asset maintenance to strategic expansion and back to a conservative posture. In 2021 and 2022, the ratio remained below 1.0, indicating that the segment was not replacing assets at a rate equal to their depreciation. A sharp increase to 1.44 in 2023 signifies a period of aggressive growth or modernization. While the ratio remained above 1.0 through 2025, suggesting continued investment exceeding depreciation, it declined to 0.84 by 2026, signaling a return to a state where capital expenditures are again lower than depreciation expenses.
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Revenue
FedEx Corp., revenue by reportable segment
US$ in millions
| May 31, 2026 | May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | |
|---|---|---|---|---|---|---|
| Federal Express | 82,273) | 75,304) | 74,663) | 75,884) | 79,299) | 72,606) |
| FedEx Freight | 8,795) | 8,892) | 9,429) | 10,084) | 9,532) | 7,833) |
| Corporate, other and eliminations | 3,652) | 3,730) | 3,601) | 4,187) | 4,681) | 3,520) |
| Consolidated total | 94,720) | 87,926) | 87,693) | 90,155) | 93,512) | 83,959) |
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).
Consolidated revenue exhibits a volatile trend over the six-year period, characterized by an initial surge, a mid-term contraction, and a final projected expansion. Total revenue increased from US$ 83,959 million in 2021 to a peak of US$ 93,512 million in 2022, followed by a sequential decline through 2024. A recovery phase is observed starting in 2025, culminating in a period high of US$ 94,720 million by May 31, 2026.
- Federal Express Segment
- As the primary driver of total revenue, this segment mirrors the overall consolidated trajectory. After reaching US$ 79,299 million in 2022, revenue experienced a downward trend for two consecutive years, bottoming at US$ 74,663 million in 2024. A significant reversal is noted in the final period, with revenue rising to US$ 82,273 million in 2026, indicating a strong recovery in core express operations.
- FedEx Freight Segment
- The Freight segment demonstrated a growth trajectory distinct from the express business in the early part of the period, peaking at US$ 10,084 million in 2023. However, a consistent downward trend followed, with revenue declining each year from 2024 through 2026, ending at US$ 8,795 million. This suggests a contraction in the LTL (Less-Than-Truckload) market or a shift in segment pricing and volume.
- Corporate, Other, and Eliminations
- This category remained relatively stable compared to the operating segments, peaking in 2022 at US$ 4,681 million. It followed a general decline toward the end of the period, stabilizing around US$ 3,652 million by 2026, suggesting a reduction in ancillary income or changes in intersegment eliminations.
The divergence between Federal Express and FedEx Freight in the later years is notable. While consolidated revenue growth in 2026 is driven almost entirely by the resurgence of the Federal Express segment, the Freight segment continues to experience a steady erosion of its revenue base. This indicates a shifting revenue mix where the organization is becoming increasingly dependent on its express operations to drive top-line growth.
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Depreciation and amortization
FedEx Corp., depreciation and amortization by reportable segment
US$ in millions
| May 31, 2026 | May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | |
|---|---|---|---|---|---|---|
| Federal Express | 3,799) | 3,722) | 3,754) | 3,655) | 3,439) | 3,251) |
| FedEx Freight | 450) | 416) | 404) | 387) | 406) | 417) |
| Corporate, other and eliminations | 120) | 126) | 129) | 134) | 125) | 125) |
| Consolidated total | 4,369) | 4,264) | 4,287) | 4,176) | 3,970) | 3,793) |
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).
Consolidated depreciation and amortization expenses demonstrate a consistent long-term upward trajectory, increasing from 3,793 million in 2021 to 4,369 million by 2026. The growth is primarily driven by the Federal Express segment, which constitutes the vast majority of the total capital consumption costs across the analyzed period.
- Federal Express Segment
- Expenses in this segment rose steadily from 3,251 million in 2021 to 3,754 million in 2024. Following a marginal contraction to 3,722 million in 2025, costs are projected to reach 3,799 million by 2026, indicating a sustained expansion of the asset base.
- FedEx Freight Segment
- A U-shaped trend is observed in this segment, with expenses declining from 417 million in 2021 to a low of 387 million in 2023. This was followed by a recovery and growth phase, with figures climbing to 450 million by 2026, marking the highest expenditure level for this segment within the reporting window.
- Corporate, Other, and Eliminations
- This category remains relatively stable, with values oscillating between 120 million and 134 million. A minor peak occurred in 2023, followed by a gradual decrease to 120 million in 2026, suggesting minimal volatility in the corporate asset structure.
- Consolidated Aggregate Growth
- The consolidated total reflects a general increase of approximately 15.2% from 2021 to 2026. Aside from a slight dip in 2025, the growth pattern is linear and closely correlates with the expenditure trends seen in the Federal Express segment.
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Operating income (loss)
FedEx Corp., operating income (loss) by reportable segment
US$ in millions
| May 31, 2026 | May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | |
|---|---|---|---|---|---|---|
| Federal Express | 5,912) | 4,885) | 4,819) | 4,193) | 5,564) | 6,003) |
| FedEx Freight | 616) | 1,489) | 1,821) | 1,936) | 1,663) | 1,005) |
| Corporate, other and eliminations | (1,065) | (1,157) | (1,081) | (1,217) | (982) | (1,151) |
| Consolidated total | 5,463) | 5,217) | 5,559) | 4,912) | 6,245) | 5,857) |
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).
Consolidated operating income exhibits a period of volatility between May 2021 and May 2026, characterized by an initial peak in 2022 followed by a correction and a subsequent period of relative stabilization. The overall financial performance is primarily driven by the Federal Express segment, though significant variance is observed in the contributions from the FedEx Freight division.
- Federal Express Operating Performance
- A U-shaped trajectory is observed within this segment. Operating income declined from $6,003 million in May 2021 to a period low of $4,193 million in May 2023. However, a consistent recovery trend followed, with income rising to $5,912 million by May 2026, nearly returning to 2021 levels.
- FedEx Freight Operating Performance
- This segment demonstrated an inverse trend relative to Federal Express. Operating income grew steadily from $1,005 million in May 2021 to a peak of $1,936 million in May 2023. Following this peak, a sharp downward trend occurred, with income falling significantly to $616 million by May 2026, representing a substantial contraction in profitability for this division.
- Corporate, Other, and Eliminations
- Operating losses in this category remained relatively stable throughout the analyzed period. Expenses fluctuated within a narrow range, starting at -$1,151 million in May 2021 and ending at -$1,065 million in May 2026, indicating consistent overhead and elimination costs.
- Consolidated Total Analysis
- The consolidated operating income reached its highest point in May 2022 at $6,245 million. While the total fluctuated in subsequent years—dropping to $4,912 million in 2023 and settling at $5,463 million by 2026—the stability of the consolidated total suggests that the growth in the Federal Express segment largely offset the precipitous decline in FedEx Freight income during the final three years of the period.
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Segment assets
FedEx Corp., segment assets by reportable segment
US$ in millions
| May 31, 2026 | May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | |
|---|---|---|---|---|---|---|
| Federal Express | 84,047) | 74,154) | 73,259) | 85,128) | 88,638) | 84,129) |
| FedEx Freight | 6,873) | 12,899) | 11,615) | 10,416) | 8,904) | 7,371) |
| Corporate, other and eliminations | 8,017) | 574) | 2,133) | (8,401) | (11,548) | (8,723) |
| Consolidated total | 98,937) | 87,627) | 87,007) | 87,143) | 85,994) | 82,777) |
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 consolidated asset base demonstrates an overall expansion over the analyzed six-year period, rising from $82,777 million in May 2021 to $98,937 million by May 2026. This trajectory is characterized by a period of relative stability between 2022 and 2025, followed by a significant acceleration in total asset value during the final fiscal year.
- Federal Express Segment Trends
- Asset levels within the Federal Express segment exhibited notable volatility. After reaching a peak of $88,638 million in 2022, assets declined steadily, reaching a low of $73,259 million in 2024. A recovery phase followed, with assets increasing to $84,047 million by May 2026, returning the segment to levels near those observed at the start of the period.
- FedEx Freight Segment Trends
- A sustained growth pattern was observed from 2021 through 2025, as assets increased consistently from $7,371 million to a peak of $12,899 million. This multi-year expansion was abruptly reversed in 2026, when segment assets fell to $6,873 million, the lowest value recorded in the six-year period.
- Corporate, Other, and Eliminations
- The corporate and eliminations category underwent a significant structural shift. The account began with substantial negative balances, peaking at -$11,548 million in 2022. A trend toward positive values emerged in 2024 ($2,133 million), culminating in a significant positive balance of $8,017 million by May 2026, indicating a fundamental change in intersegment eliminations or corporate asset holding.
- Consolidated Asset Composition
- The consolidated total reflects a diversifying asset distribution. While the Federal Express segment remains the primary driver of total asset value, its proportional dominance fluctuated. The sharp increase in consolidated assets in 2026 was driven by the simultaneous recovery of Federal Express assets and the surge in corporate account balances, which more than offset the precipitous decline in FedEx Freight assets.
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Capital expenditures
FedEx Corp., capital expenditures by reportable segment
US$ in millions
| May 31, 2026 | May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | |
|---|---|---|---|---|---|---|
| Federal Express | 3,349) | 3,505) | 4,591) | 5,480) | 6,341) | 5,461) |
| FedEx Freight | 379) | 437) | 461) | 557) | 319) | 320) |
| Corporate, other and eliminations | 81) | 113) | 124) | 137) | 103) | 103) |
| Consolidated total | 3,809) | 4,055) | 5,176) | 6,174) | 6,763) | 5,884) |
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).
Consolidated capital expenditures exhibit a peak in May 2022, followed by a consistent downward trajectory through the projected period ending May 2026. Total spending rose from 5,884 million US dollars in 2021 to a maximum of 6,763 million US dollars in 2022, before declining annually to a projected 3,809 million US dollars by 2026.
- Federal Express Segment
- This segment represents the primary driver of overall capital investment. Expenditures peaked in May 2022 at 6,341 million US dollars. Since that period, there has been a sustained reduction in spending, falling to 4,591 million US dollars by May 2024 and continuing toward a projected 3,349 million US dollars by May 2026.
- FedEx Freight Segment
- Capital spending within this segment remained relatively stable between 2021 and 2022 before experiencing a significant surge to 557 million US dollars in May 2023. Following this peak, a gradual decline is observed, with expenditures projected to reach 379 million US dollars by May 2026.
- Corporate, Other, and Eliminations
- Expenditures in this category are nominal relative to the operating segments. A peak occurred in May 2023 at 137 million US dollars, followed by a steady decrease toward a projected 81 million US dollars by May 2026.
- Consolidated Expenditure Trajectory
- The overall financial pattern indicates a transition from an expansionary phase ending in 2022 to a phase of disciplined capital contraction. The total consolidated capital expenditure is projected to be approximately 43.8% lower in May 2026 than it was at its peak in May 2022.
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