FedEx (FDX) Roadshow presentation summary

Strategic network and operational highlights

• Operates in over 220 countries and territories, connecting more than 99% of global GDP with 700 aircraft, 175,000+ vehicles, and 4,000+ facilities.

• Delivers nearly 18 million shipments daily and employs over 450,000 people worldwide.

• Network 2.0 and One FedEx initiatives are expected to optimize operations, with 65% of eligible U.S. and Canada ADV optimized by end of CY26 and over 900 stations optimized by end of 2027.

• $1B in cost savings expected by end of CY26, ramping to $2B by end of 2027 through structural cost levers and footprint reduction.

Financial performance and outlook

• CY26 revenue growth projected at ~11%, with adjusted EPS between $16.90 and $18.10 and capital spend of $3.9B.

• 2029 targets include ~$8B operating income, ~8% operating margin, and ~$6B adjusted free cash flow.

• Total revenues expected to grow from $85B in FY26 to $98B in 2029, a 4% CAGR.

• U.S. domestic and international segments both targeting 4% CAGR in revenue through 2029, with significant margin expansion.

• Capital intensity to decline, with CapEx-to-revenue ratio dropping to ~4% by 2029.

Business strategy and market positioning

• Focused on high-quality, durable revenue growth from B2B, SMBs, and high-value B2C opportunities.

• B2B growth strategy targets verticals with a combined TAM over $130B, including healthcare, automotive, data centers, and aerospace.

• 70% of ground service revenue comes from shipments traveling over 300 miles, emphasizing longer-haul, higher-value B2C.

• Digital and data-driven solutions, such as Dataworks, are being scaled to enhance customer value and operational orchestration.