FedEx Revenue, Net Income Increase for Q1 2026
Freight Division Remains on Track to Become New Company
Key Takeaways:
- Net income of $824 million marked an increase from $794 million in the 2024 period.
- Total Revenue rose to $22.2 billion from $21.6 billion in the year-earlier period.
- FedEx Freight remains on track to be spun off into a publicly traded company by June 2026.
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FedEx Corp.’s revenue and earnings increased in the three months ending Aug. 31, the company announced Sept. 18 in its first-quarter 2026 earnings report.
The Memphis, Tenn.-based package delivery giant posted net income of $824 million, or $3.46 a diluted share. That compared with $794 million, $3.21, during the same time the previous year. Total revenue increased 3% to $22.2 billion from $21.6 billion.
“Our earnings growth underscores the success of our strategic initiatives, as we are flexing our network and reducing our cost-to-serve, while further enhancing our value proposition and customer experience,” FedEx CEO Raj Subramaniam said. “Our strategic initiatives, paired with our unique operational data platform from moving 17 million packages through our network daily, position us well to serve our customers in any environment and to create long-term value for our stockholders.”
The report noted that the improvement in operating results reflected strength in domestic package revenue and continued structural cost reductions, and also highlighted that the results were unfavorably impacted by a non-recurring income tax expense. The report also provided a brief update on the planned spinoff of FedEx Freight into a new publicly traded company, with the initiative being on track for completion by June 2026.
Revenue by Segment
• FedEx Freight: Down 3% to $2.26 billion from $2.33 billion during the same time last year. The segment operating results decreased during the quarter due to lower revenue, higher wage rates and the hiring of additional dedicated less-than-truckload sales professionals. Operating income decreased 18% to $360 million from $439 million last year.
• Federal Express: Increased 4% to $19.1 billion from $18.3 billion the prior year. The improvement in operating results was driven by higher U.S. domestic and international priority package yields, continued cost savings from transformation initiatives and increased domestic package volumes. This was partially offset by higher wage and purchased transportation rates, the global trade environment and the expiration of the U.S. Postal Service contract. Operating income increased 19% to $1.14 billion from $953 million.
FedEx ranks No. 2 on the Transport Topics Top 100 list of the largest for-hire carriers in North America, No. 2 on the TT Top 50 list of the largest global freight carriers and No. 43 on the TT Top 100 list of the largest logistics companies.
