FDX

This article first appeared on GuruFocus. Release Date: August 31, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Group volume grew 16% year-on-year to 318 million parcels, with revenue up 18% to 4.2 billion Polish Zloty, outpacing volume growth. International markets now account for 54% of group revenue, with Eurozone volumes up 30% and APM volumes up 45% year-on-year. Record APM deployment of 15,600 new machines in the last 12 months, crossing 100,000 out-of-home points and 70,000 APMs globally. Poland maintains strong consumer engagement with 96% of consumers using InPost lockers for receiving parcels and an NPS of 76, well ahead of competitors. UK transformation is progressing, with adjusted EBITDA improving from a loss of 49 million Polish Zloty in Q1 to a positive 29 million in Q2, and B2C volumes up 27%. FedEx partnership is set to launch last-mile services in the UK and Poland in September, opening new growth opportunities. Group adjusted EBITDA growth slowed to 4.4% in Q2, with margin declining to 25% due to segment mix and investment in new services. Adjusted EBIT declined 19.3% and adjusted net profit fell 50% in Q2, impacted by higher depreciation and unfavorable FX. UK adjusted EBITDA margin dropped to 2.8% from 5.1% a year ago, reflecting restructuring costs and lower revenue per parcel. Group free cash flow turned negative at -541 million Polish Zloty in H1 2026, versus a positive 54 million a year ago, due to heavy international investment. Net leverage rose to 2.5 times from 2.1 times a year ago, with net debt increasing to 10.1 billion Polish Zloty. Full-year 2026 outlook revised down: adjusted EBITDA is now expected to decline by a mid-single-digit percentage, and Q3 volume growth is expected to be low single-digit due to EU customs fee changes impacting Chinese volumes. Warning! GuruFocus has detected 9 Warning Signs with INPOY. Is INPOY fairly valued? Test your thesis with our free DCF calculator. Q: The EU's abolishment of the de minimis rule has reportedly caused Chinese volumes to drop 30-40%. Do you recognize this figure in your markets, and how does it impact the mix of your business in Poland, given that Chinese parcels typically generate lower margins and are delivered to door rather than APMs? A: Michael Rouse (CEO International) confirmed that while the company does not concentrate heavily on Chinese business, the impact is consistent with what they have seen in certain markets. He noted that in some markets, this has actually been beneficial from a margin perspective due to a strong recovery in local e-commerce. He also clarified that the UK business has seen no impact at all. Javier van Engelen (CFO) added that the volume outlook revision is purely driven by the Chinese impact, accounting for about 2-3% of the revision, and that the company has initiatives in place to compensate for the volume loss. Q: How much of the H1 international working capital outflow is temporary and reversible in H2 versus structural cash consumption from integrating or scaling Yodel and the international network? A: Javier van Engelen (CFO) stated that the negative free cash flow for the first half is roughly half and half. Half is clearly investment into network innovation to stay ahead of the market, following their strategy for APM and out-of-home usage. The other half is temporary, including a temporary impact from receivables and payables linked to tax payments in Poland and some longer receivables in France, which they expect to be recovered in the second half of the year. Q: Regarding the mix of to-door and APMs in Poland, will the abolishment of the de minimis rule change this mix? A: Javier van Engelen (CFO) explained that the impact depends on where the volume goes. Since B2C penetration in Poland is very strong, the mix will likely shift to other platforms and some B2C. He noted that to-door is an area where they have been filling the gap on volume, and they will continue pushing some volume through deeper to-door penetration. While there will be some impact on pricing, the mix effect with to-door will be seen in Q3. Rafael Droska (CEO) added that InPost is becoming a first-choice vendor for door-to-door services, not only for e-commerce parcels but also for B2B parcels, due to their extraordinary quality, and they are taking over a lot of this business from international players. Q: Can you provide more detail on the revised full-year 2026 outlook, particularly regarding volume growth, adjusted EBITDA, and CapEx? A: Javier van Engelen (CFO) outlined the revised outlook: group volume growth is expected in the mid-teens, with Poland at mid-single-digit growth, Eurozone at high 20s, and UK at low 30s. Group revenue is expected to grow in the mid-teens. Adjusted EBITDA is now expected to decline by a mid-single-digit percentage, with margins around the mid-20s. The company plans to deploy around 19,000 new APMs (3,000 in Poland, 11,000 in the Eurozone, and 5,000 in the UK), with CapEx of around 2.1 billion Polish Zloty. They expect negative free cash flow at year-end and an increased net leverage ratio. Q: What is the expected impact of the EU customs fee changes on Q3 2026 volume growth? A: Javier van Engelen (CFO) stated that for Q3 2026, the group anticipates year-on-year volume growth in the low single-digit percentage range. Poland is expected to have flat volume dynamics, mainly reflecting the impact of changes to EU customs fees on international marketplace volumes. Internationally, they forecast mid-single-digit year-on-year growth, also tempered by the EU customs fee changes in the Eurozone. The UK is comparing to a high base from the prior year. Q: Can you elaborate on the UK business transformation and its path to profitability? A: Michael Rouse (CEO International) noted that UK volumes grew 16% to 82 million parcels, with B2C now representing 61% of the mix, up 27%. APM and returns volumes were up 29% year-over-year. An important milestone was the rebranding of Yodel to Inpost on July 26, bringing UK operations under a single brand. Customer sentiment is improving, with a Trustpilot score of 4.9 out of 5 and 8 million mobile app downloads. Javier van Engelen (CFO) added that UK adjusted EBITDA came in at 29 million Polish Zloty, with margin down from 5.1% to 2.8% due to restructuring efforts, but improved meaningfully versus Q1's loss of 49 million Polish Zloty, showing the transformation is progressing. Q: What is driving the strong performance in the Eurozone segment, and how sustainable is this growth? A: Michael Rouse (CEO International) reported that Eurozone volume grew 30% to over 100 million parcels, outpacing the underlying e-commerce market which grew around 9%. B2C volumes were up 30%, and APM volumes were up 45% year-on-year. The APM out-of-home flow rate reached 47%, up from 40% a year ago. The Mondial Relay network grew 13% to nearly 46,000 locations, with APMs growing over 52%. Mobile app downloads reached 10 million, nearly doubling year-on-year. Javier van Engelen (CFO) added that Eurozone adjusted EBITDA increased by 40% to 203 million Polish Zloty, with margin essentially flat at 16.6%, as scale benefits and disciplined SG&A management were partially offset by the dilutive impact of growing to-door services. Q: Can you provide details on the FedEx commercial agreement and its expected impact? A: Javier van Engelen (CFO) confirmed that, as previously announced, FedEx and InPost have been negotiating an arm's length commercial agreement. In September, InPost plans to launch last-mile services for FedEx in the UK and Poland as part of an initial pilot phase pursuant to this agreement. This represents a significant strategic partnership that could expand InPost's B2B and door-to-door capabilities. Q: How is the company's network expansion progressing, and what is the current scale? A: Rafael Droska (CEO) reported that at the end of Q2, the company operated over 98,000 out For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. The proposed Modiv acquisition is the primary driver for increasing industrial exposure to 50% of straight-line rent while extending the portfolio's weighted average lease term to 6.6 years. Management is executing a 'thoughtful' office reduction strategy, targeting a decrease in office exposure to 21% of straight-line rent through selective monetizations and lease-end dispositions. Performance attribution for the quarter was bolstered by high occupancy (97%) and strong renewal spreads of 5.6%, particularly within the retail and industrial segments. The capital recycling strategy is focused on capturing the spread between disposition cap rates (7.6%) and higher-yielding industrial acquisitions (8.2%) like the recent FedEx transaction. Operational efficiency has improved significantly, evidenced by a sharp decline in recurring capital expenditures from $19.6 million to $3.4 million year-over-year. Management emphasized a credit-centric approach, with 63% of the tenant base now carrying investment-grade or implied investment-grade ratings. CEO Michael Weil's increased personal ownership of 2.9 million shares is presented as a signal of management's alignment with the long-term strategic trajectory. Full-year 2026 AFFO per share guidance was raised to a range of $0.82 to $0.85, reflecting approximately 1.5 quarters of expected contribution from the Modiv acquisition. Gross transaction volume guidance was significantly increased to $700 million to $800 million to account for the mid-August anticipated closing of the Modiv deal. Management reaffirmed a net debt to adjusted EBITDA target range of 6.5x to 6.9x, maintaining a leverage-neutral approach to growth. Future office dispositions will utilize a dual-track strategy: selling to developers for redevelopment at lease expiration and opportunistic market sales to maximize revenue. The company maintains a three-lever capital allocation framework prioritizing leverage reduction, disciplined industrial acquisitions, and opportunistic share repurchases. The Modiv transaction is contingent on a shareholder vote scheduled for August 10, 2026, with a mid-August closing assumption embedded in guidance. A $45 million vacant office property disposition in Q1 2026 successfully eliminated over $1 million in annualized negative NOI drag. The KPN office sale in the Netherlands is structured to close upon lease expiration in December 2026, utilizing a non-refundable deposit to mitigate occupancy risk. Management noted that while share repurchases were limited this quarter due to the pending merger, the program remains a 'valuable tool' for future capital deployment. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management declined to set a specific 'fire-sale' date but confirmed they are actively working with regional brokers to exit assets efficiently. The strategy focuses on maximizing revenue by collecting 100% of remaining rent before handing over assets to developers for redevelopment. There are no restrictions on selling these properties; GNL intends to 'sharpen' the portfolio toward single-tenant industrial assets. Non-core assets from the merger will be treated as opportunistic sale candidates to fund debt reduction or industrial reinvestment. Management is seeing ample deal flow but remains disciplined, bidding only where they want to own rather than chasing broker-led pricing. The focus remains on 'quality of earnings' and long-term tenant stability rather than just initial cap rates. Deleveraging remains the top priority for the company's long-term strategy. Management views the stock buyback program as a tool to be used when the market does not reflect intrinsic value, though they prefer organic stock price appreciation.

Make better investment decisions with Simply Wall St's easy, visual tools that give you a competitive edge. FedEx (FDX) has put fresh financing tools in place by filing an omnibus shelf registration for common stock and debt securities, shortly after reporting fourth quarter fiscal 2026 results that surpassed earnings and revenue estimates. See our latest analysis for FedEx. The FedEx share price closed at US$314.96, with the 1-year total shareholder return of 63.96% standing in contrast to a 90-day share price return that has fallen 18.82%. This suggests strong longer term gains but fading recent momentum as investors digest the spin off of FedEx Freight and the new shelf registration. If you are looking beyond FedEx for other logistics and infrastructure driven stories, this could be a good moment to scan 35 power grid technology and infrastructure stocks After a strong 1 year run and a sharp 90 day pullback, along with fresh financing capacity and the FedEx Freight spin off, is the current FedEx valuation still offering enough upside to justify the risks from here? FedEx is trading at $314.96 versus a most popular narrative fair value of about $351, which frames the current pullback as a valuation gap rather than a full reset. Read the complete narrative. Want to see what sits behind that margin story? The narrative leans on measured revenue growth, firming profitability and a richer earnings multiple. The exact mix may surprise you. Result: Fair Value of $351 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, there are still meaningful risks to the FedEx story, including execution around the Freight separation, as well as pressure from contract changes and international pricing and yield. Find out about the key risks to this FedEx narrative. If that mix of optimism and caution around FedEx resonates, do not wait for the next headline to decide what you think. Review the 4 key rewards. If you only stop at FedEx, you could miss some of the most interesting opportunities on the platform. Put the Simply Wall Street Screener to work. Target potential value opportunities by using the 49 high quality undervalued stocks that filters for quality businesses trading below their assessed worth. Protect your downside by scanning the 81 resilient stocks with low risk scores focused on companies with more resilient risk profiles. Spot early movers by searching the screener containing 20 high quality undiscovered gems built to surface lesser known stocks with strong fundamentals. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include FDX. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

It has been about a month since the last earnings report for FedEx (FDX). Shares have added about 1.3% in that time frame, underperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is FedEx due for a pullback? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent catalysts for FedEx Corporation before we dive into how investors and analysts have reacted as of late. FedEx reported solid fourth-quarter fiscal 2026 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate. Quarterly earnings (excluding 29 cents from non-recurring items) of $6.31 per share beat the Zacks Consensus Estimate of $5.91 as well as improved 3.9% year over year. The company’s bottom line benefited from share repurchase activity. Revenues of $25.0 billion came ahead of the Zacks Consensus Estimate of $24.1 billion and improved 12.5% from the year-ago fiscal quarter’s reported figure. Apart from the better-than-expected results, FDX has also raised its full-year fiscal 2026 guidance for revenues and earnings. For fiscal 2026, FedEx now expects revenue growth to be up almost 11% on a year-over-year basis (prior view: up 6-6.5%). Earnings per share (EPS) are now anticipated to be between $16.55 and $17.75 before the MTM retirement plans accounting adjustments compared with the prior guidance of $16.05-$16.85. Operating income, on a reported basis, increased 3.4% to $2.09 billion from the year-ago fiscal quarter’s reported number. Operating margin fell to 8.4% from 9.1% in the year-ago reported quarter. Operating income improved in the fiscal fourth quarter on the back of continued strength in U.S. Domestic and International Priority package yields, cost savings from transformation initiatives and increased U.S. domestic and international export package volume. Operating expenses (reported basis) increased 15% to $23.4 billion. In January 2025, FedEx’s board of directors announced a change in the company’s fiscal year-end from May 31 to Dec. 31. The fiscal year change became effective for the period beginning June 1, 2026. The spin-off of FedEx Freight into a new publicly traded company was completed on June 1, 2026. In connection with the spin-off, FedEx Freight paid a cash dividend of almost $4.1 billion to FedEx from the proceeds of the $3.7 billion senior notes offering completed in February 2026 and borrowings under its delayed-draw term loan facility. FedEx Freight will discuss its fiscal fourth-quarter results on June 25, 2026, through a call. FedEx Express segment’s revenues grew 14% year over year to $21.5 billion. The Federal Express segment benefited from higher U.S. domestic and International Priority package yields, continued cost savings from transformation initiatives and increased U.S. domestic and international export package volume. These factors were partially offset by increased purchased transportation and wage rates, higher variable incentive compensation expenses and the financial impacts of global trade policy changes. FedEx Freight revenues grew 5% from the year-ago fiscal quarter’s reported figure to $2.40 billion. Average daily shipments fell 6% year over year. Capital expenditures for the reported quarter were $1.47 billion. FedEx exited fourth-quarter fiscal 2026 with cash and cash equivalents of $13.3 billion compared with $8.01 billion at the end of the prior quarter. Long-term debt (less current portion) was $23.2 billion compared with $22.8 billion at prior-quarter end. During fiscal 2026, FedEx returned almost $2.2 billion to shareholders, which includes $776 million in the form of share repurchases and $1.4 billion through dividend payments. As of May 31, 2026, $1.3 billion was available under the company's 2024 stock repurchase authorization. EPS, after excluding costs related to business optimization initiatives, the planned spin-off of FedEx Freight, and the planned change in the company's fiscal year end, is now expected between $16.90 and $18.10 compared with the prior guided range of $19.30 to $20.10. Pension contributions are now expected to be up to $475 million (prior view: $275 million). For fiscal 2026, FedEx now anticipates capital spending of $3.9 billion (prior view: $4.1 billion), prioritizing investments in network optimization and efficiency improvement, which includes fleet and facility modernization and automation. The effective tax rate is now estimated to be around 23% compared with the prior expectation of 24%. For 2026, FedEx remains committed to rewarding its shareholders, which includes the previously announced 5% increase in the annual dividend on its common stock, after adjusting for the FedEx Freight spin-off. FDX also plans to repurchase up to $1 billion worth of shares opportunistically, leveraging continued balance sheet flexibility and free cash flow generation to offset dilution from equity compensation. Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions. At this time, FedEx has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the second quintile for value investors. Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in. FedEx has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report FedEx Corporation (FDX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Longleaf Partners, managed by Southeastern Asset Management, released its second-quarter 2026 investor letter for its “Partners Fund”. A copy of the letter can be downloaded here. The letter states that the portfolio holdings are attractive now based on both P/V and P/FCF metrics. However, the Fund returned 3.87% in the quarter, significantly lagging the S&P 500’s 15.20% return and the Russell 1000 Value Index’s 13.87% gain. An underweight in Information Technology (IT) primarily contributed to the underperformance.  The market’s preference for overvalued stocks in Industrials and other sectors led to inflated multiples, overshadowing real earnings power. The Firm’s investment approach focuses on median, unweighted multiples, prioritizing growth in free cash flow per share, the potential for multiple expansion, and strategic initiatives. In addition, please check the Fund’s top five holdings to know its best picks in 2026. In its Q2 2026 investor letter, Longleaf Partners Fund highlighted FedEx Corporation (NYSE:FDX) as a leading contributor. FedEx Corporation (NYSE:FDX) is a US-based company that focuses on transportation, e-commerce, and business services. On July 10, 2026, FedEx Corporation (NYSE:FDX) closed at $314.69 per share. One-month return of FedEx Corporation (NYSE:FDX) was -7.10%, and its shares gained 67.02% over the past 52 weeks. FedEx Corporation (NYSE:FDX) has a market capitalization of $75.09 billion. Longleaf Partners Fund stated the following regarding FedEx Corporation (NYSE:FDX) in its Q2 2026 investor update: FedEx Corporation (NYSE:FDX) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 86 hedge fund portfolios held FedEx Corporation (NYSE:FDX) at the end of the first quarter, up from 68 in the previous quarter.  While we acknowledge the potential of FedEx Corporation (NYSE:FDX) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. In another article, we covered FedEx Corporation (NYSE:FDX) and shared the list of stocks Jim Cramer discussed. In addition, please check out our hedge fund investor letters Q2 2026 page for more investor letters from hedge funds and other leading investors. READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years. Disclosure: None. This article is originally published at Insider Monkey.

MEMPHIS, Tenn., July 10, 2026--(BUSINESS WIRE)--FedEx Corp. (NYSE: FDX) ("FedEx") today announced the early results of its previously announced cash tender offers (each, an "Offer" and, collectively, the "Offers") for its validly tendered (and not validly withdrawn) notes set forth below (collectively, the "Notes"). The Offers are being made pursuant to an Offer to Purchase, dated June 25, 2026 (the "Offer to Purchase"), which sets forth a description of the terms of the Offers. The following table summarizes certain information regarding the Notes that were validly tendered and not validly withdrawn in the Offers as of 5:00 p.m., New York City time, on July 9, 2026 (the "Early Tender Time"). Withdrawal rights for the Offers expired at 5:00 p.m., New York City time, on July 9, 2026 (the "Withdrawal Deadline") and, accordingly, any Notes that were validly tendered in the Offers may no longer be withdrawn except where additional withdrawal rights are required by law. The consideration to be paid for the Notes validly tendered (and not validly withdrawn) and accepted for purchase pursuant to the Offers will be determined at 10:00 a.m., New York City time, on July 10, 2026 (the "Price Determination Time") in the manner described in the Offer to Purchase by reference to the applicable fixed spread specified on the front cover of the Offer to Purchase for each series of Notes over the applicable yield to the maturity date or par call date, as applicable, based on the bid-side price of the applicable U.S. Treasury Security (the "Reference Treasury Security") specified on the front cover of the Offer to Purchase in the column entitled "Reference U.S. Treasury Security." Each holder who validly tendered and did not validly withdraw its Notes at or prior to the Early Tender Time and whose Notes are accepted for purchase will be entitled to receive the applicable "Total Consideration," which includes an early tender premium of $30 per $1,000 principal amount of Notes so tendered and accepted for purchase (the "Early Tender Premium"). The Early Tender Premium will be included in the Total Consideration for each series of Notes, and will not constitute an additional or increased payment. In addition, in each case, holders whose Notes are accepted for purchase will receive accrued and unpaid interest on their Notes up to, but excluding, July 14, 2026 (the "Early Settlement Date"), payable on the Early Settlement Date. Since the aggregate purchase price, not including accrued and unpaid interest, payable in respect of the Notes that were validly tendered and not validly withdrawn in the Offers at or before the Early Tender Time is expected to exceed the Offer Cap, FedEx expects to accept for purchase pursuant to the Offers the full amount of each series of the 4.500% Notes due 2065 (which have an Acceptance Priority Level of 1), the full amount of each series of the 3.250% Notes due 2041 (which have an Acceptance Priority Level of 2), the full amount of each series of the 4.050% Notes due 2048 (which have an Acceptance Priority Level of 3), the full amount of each series of the 3.875% Notes due 2042 (which have an Acceptance Priority Level of 4), the full amount of each series of the 4.100% Notes due 2045 (which have an Acceptance Priority Level of 5), the full amount of each series of the 4.100% Notes due 2043 (which have an Acceptance Priority Level of 6), the full amount of each series of the 4.400% Notes due 2047 (which have an Acceptance Priority Level of 7), the full amount of each series of the 4.550% Notes due 2046 (which have an Acceptance Priority Level of 8), the full amount of each series of the 4.750% Notes due 2045 (which have an Acceptance Priority Level of 9), the full amount of each series of the 2.400% Notes due 2031 (which have an Acceptance Priority Level of 10), the full amount of each series of the 4.950% Notes due 2048 (which have an Acceptance Priority Level of 11), the full amount of each series of the 3.900% Notes due 2035 (which have an Acceptance Priority Level of 12) and a portion of each series of the 5.100% Notes due 2044 (which have an Acceptance Priority Level of 13) validly tendered and not validly withdrawn at or prior to the Early Tender Time on a prorated basis as described in the Offer to Purchase, so that the aggregate purchase price does not exceed the Offer Cap. The 3.100% Notes due 2029 (which have an Acceptance Priority Level of 14), the 5.250% Notes due 2050 (which have an Acceptance Priority Level of 15), the 3.400% Notes due 2028 (which have an Acceptance Priority Level of 16), the 4.250% Notes due 2030 (which have an Acceptance Priority Level of 17), the 4.200% Notes due 2028 (which have an Acceptance Priority Level of 18) and the 4.900% Notes due 2034 (which have an Acceptance Priority Level of 19) will not be accepted for purchase. In addition, since the aggregate purchase price, not including accrued and unpaid interest, payable in respect of the Notes that were validly tendered and not validly withdrawn in the Offers at or before the Early Tender Time is expected to exceed the Offer Cap, FedEx does not expect to accept for purchase any Notes tendered after the Early Tender Time. None of the Offers is conditioned on any of the other Offers or upon any minimum principal amount of Notes of any series being tendered. None of the Offers is subject to a financing condition. FedEx expects to issue a press release later today following the Price Determination Time announcing the Total Consideration payable in connection with the Offers. FedEx expressly reserves the right, in its sole discretion, subject to applicable law, to (1) terminate any or all of the Offers and not accept for purchase any of the Notes not theretofore accepted for purchase in the terminated Offer or Offers, (2) waive any and all of the conditions to the Offers on or prior to the time the Notes are accepted for purchase in any or all of the Offers, (3) accept for purchase and pay for all Notes validly tendered at or before the Early Tender Time or the time at which the Offers are scheduled to expire (the "Expiration Time") and not validly withdrawn at or before the Withdrawal Deadline in any or all of the Offers and to keep any or all of the Offers open or extend the Early Tender Time, Withdrawal Deadline or Expiration Time to a later date and time, (4) increase or decrease the Offer Cap or change the Acceptance Priority Levels or (5) otherwise amend the terms and conditions of the Offers. This press release does not constitute an offer to purchase or a solicitation of an offer to sell any securities. The Offers are being made solely pursuant to the Offer to Purchase and only to such persons and in such jurisdictions as are permitted under applicable law. No offer, solicitation, purchase or sale will be made in any jurisdiction in which such an offer, solicitation or sale would be unlawful. Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, BofA Securities, Inc., Citigroup Global Markets Inc and Wells Fargo Securities, LLC are serving as Lead Dealer Managers for the Offers and Morgan Stanley & Co. LLC and Scotia Capital (USA) Inc. are serving as Co-Dealer Managers for the Offers (each, a "Dealer Manager" and together, the "Dealer Managers"). Questions regarding the Offers may be directed to Goldman Sachs & Co. LLC at (800) 828-3182 (toll free) or (212) 357-1452 (collect), J.P. Morgan Securities LLC at (866) 834-4666 (toll free) or (212) 834-3554 (collect), BofA Securities, Inc. at (888) 292-0070 (toll free) or (980) 387-3907 (collect), Citigroup Global Markets Inc. at (800) 558-3745 (toll free) or (212) 723-6106 (collect) or Wells Fargo Securities, LLC at (866) 309-6316 (toll free) or (704) 410-4759 (collect). The complete terms and conditions of the Offers are described in the Offer to Purchase. Requests for the Offer to Purchase or the documents incorporated by reference therein may be directed to Global Bondholder Services Corporation ("GBSC"), which is acting as the Tender Agent and Information Agent for the Offers, at (212) 430-3774 (for banks and brokers), at (855) 654-2015 (for all others), or by email at [email protected]. Copies of the Offer to Purchase are (subject to offer restrictions) available on their website https://www.gbsc-usa.com/FedEx. About FedEx Corp. FedEx Corp. (NYSE: FDX) provides customers and businesses worldwide with a broad portfolio of transportation, e-commerce and business services. The company offers integrated business solutions utilizing its flexible, efficient, and intelligent global network. Consistently ranked among the world's most admired and trusted employers, FedEx inspires its employees to remain focused on safety, the highest ethical and professional standards and the needs of their customers and communities. FedEx is committed to connecting people and possibilities around the world responsibly and resourcefully, with a goal to achieve carbon-neutral operations by 2040. Cautionary Statement Regarding Forward-Looking Information Certain statements in this press release may be considered forward-looking statements, such as statements regarding the expected timing of completion of the Offers and FedEx’s expectations with respect to the acceptance of validly tendered (and not validly withdrawn) Notes. 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 its 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; FedEx’s ability to achieve its cost reduction initiatives and financial performance goals, including its 2029 financial performance targets; FedEx’s ability to achieve the anticipated benefits of the spin-off of FedEx Freight Holding Company, Inc. ("FedEx Freight") on June 1, 2026 (the "Spin-Off"); the possibility of disruption, including changes to existing business relationships, disputes, litigation, or unanticipated costs in connection with the Spin-Off of FedEx Freight; 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 program and other ongoing reviews and initiatives; a significant data breach or other disruption to FedEx’s technology infrastructure; damage to FedEx’s reputation or loss of brand equity; FedEx’s ability to meet its 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 FedEx’s ability to efficiently or fully utilize its 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; FedEx’s 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; FedEx’s 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 FedEx’s 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 FedEx’s 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; FedEx’s 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; FedEx’s ability to achieve or demonstrate progress on its goal of carbon-neutral operations by 2040; successful completion of stock repurchases; and other factors which can be found in FedEx’s and its subsidiaries’ press releases and FedEx’s filings with the Securities and Exchange Commission, including FedEx’s Annual Report on Form 10-K for the fiscal year ended May 31, 2025 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. View source version on businesswire.com: https://www.businesswire.com/news/home/20260709830305/en/ Contacts FedEx Corp. Media Contact: Caitlin Adams [email protected] FedEx Corp. Investor Relations Contact: Jeni [email protected]

FedEx is guiding for a major profit acceleration, but on its latest earnings call, analysts pressed hard on whether the growth is real or just a story of well-timed costs. FedEx (FDX) stock has returned a stunning 65.0% over the past year, and on its latest call, the company gave bulls more to cheer about, guiding for 20% adjusted EPS growth through the end of the calendar year. Yet the analyst Q&A heavily focused on a persistent question over the quality of that growth, probing whether it was driven by operational leverage or largely influenced by one-time cost rolling off and the transition in the reporting calendar. The skepticism centered on the quarter’s profitability. With revenue growing at a solid mid-teens rate, why were incremental margins so low? This is the kind of gap that signals costs might be eating the growth. One analyst tried to “square incremental margins of only 8% on very solid mid-teens revenue growth,” a direct challenge to the quality of the earnings. Management’s answer pointed to a significant headwind from variable incentive compensation. The CEO also noted that if you took the mathematical effect of higher fuel surcharges out of the equation, which boost revenue but not profit, the company’s margin would have been up year-over-year. The explanation was mechanical, but it highlighted how much of the profit picture is being shaped by factors other than core operational leverage. That skepticism carried over to the company’s strong forward guidance, with analysts questioning whether the sharp profit acceleration came from a booming underlying business or simply from a big, temporary cost falling out of the year-over-year comparison. The question was put directly: is the forecast a function of business momentum or just the timing of incentive comp? The CFO’s response was candid, confirming that timing is a major factor. Of an expected $800 million variable compensation headwind for the year, most has already been incurred, with “only $100 million of this headwind” remaining. While the CFO stressed that underlying business momentum remains strong, the answer confirms a large part of the guided acceleration comes from the absence of a prior-period cost. So, what did we learn? Management explained the lumpy profit cadence by pointing to specific, and mostly temporary, items. But the call left a major cost challenge in plain sight, created by the recent spin-off of FedEx Freight. The separation leaves behind what management calls “stranded costs,” which they quantified as a $350 million starting point that the remaining company must now absorb or eliminate. They committed to removing about 30% of that figure, or roughly $100 million, this calendar year, with a goal to mitigate the rest by the end of CY 2027. For investors looking for broader exposure to the air freight and logistics sector, an ETF like IYT offers a diversified alternative. For FedEx, however, everything now hinges on the pace of that cost removal; investors should watch whether the company can outrun the $350 million in stranded costs to prove its underlying profit power is real. Pressing on complex, structural financial questions is how good investors avoid nasty surprises. But it is a single-stock exercise, and even a sector ETF only widens the bet to a single theme. Real diversification means spreading across sectors, so one industry's bad year does not define yours. The Trefis High Quality (HQ) Portfolio handles that second half: about 30 quality, cash-generative companies drawn from ACROSS the market, selected on margins, cash flow, and balance-sheet strength rather than one theme's momentum, then sized and rebalanced with care. The payoff is a track record of outpacing a benchmark that combines the three major indices - the S&P 500, S&P Mid-cap, and Russell 2000. Keep asking the hard questions, without pinning your future to any single answer, or any single industry.