FedEx Guides FY26 EPS

Reiterates confidence in achieving 2029 Investor Day commitments, citing clear Q4 proof points from B2B-driven revenue growth, higher profit flow-through and improving mix in healthcare, automotive, aerospace and data center verticals. - - Exceeded the $1B FY26 transformation-related savings target, with Network 2.0, tricolor and Europe efficiency opportunities driving better density and structural cost reduction. - - FEC delivered FY26 revenue +9% and adjusted operating income +17%, with adjusted operating margin expanding 60 bps to 7.7%, the highest in four years, despite trade-policy changes and MD-11 fleet grounding headwinds. - - Q4 FEC revenue +14% was driven by yield and volume strength across almost all services, reflecting deliberate growth in higher-yielding segments rather than low-quality volume. - - MD-11 fleet began returning to service last month; four aircraft were back in operation as of today, and management expects the full fleet back in service before peak season. - - Global trade policy changes remained a significant headwind in FY26, but management said FedEx flexed its network as trade patterns evolved and continued to keep supply chains moving. - - FedEx Freight spin-off was completed June 1; FedEx will no longer cover Freight in detail on this call, and Freight will host a separate earnings call on June 25. - - ** Will begin passing on US tariff refunds to customers in August - **The company said the AI and data center business is an “emerging and rapidly scaling growth engine,” delivering double-digit revenue growth across hyperscalers and power-infrastructure buildouts.