On June 23, 2026, FedEx reported fourth-quarter revenue of $25.0 billion and full-year revenue of $94.7 billion, with GAAP net income of $1.60 billion in Q4 and $4.43 billion for the year. The company said it exceeded its $1 billion transformation-savings goal and confirmed the Freight spin-off on June 1, 2026. The FY2026 year-end balance sheet still consolidates Freight — the spin closed the day after fiscal year-end — so the ledger below is the last combined picture before RemainCo and Freight report separately.
The Headline Numbers
FedEx's fiscal year ends May 31; Q4 FY2026 is March–May 2026. The fence further down is the full fiscal 2026 income statement (10-K / companyfacts). The first table matches that annual filing; the second table is Q4 GAAP from the earnings release — same company, different window.
| Metric | FY2026 | FY2025 | YoY Change |
|---|---|---|---|
| Revenue | $94,720M | $87,926M | +7.7% |
| Operating income | $5,463M | $5,217M | +4.7% |
| Operating margin | 5.8% | 5.9% | −10 bps |
| Net income | $4,433M | $4,092M | +8.3% |
| Metric | Q4 FY2026 | Q4 FY2025 | YoY Change |
|---|---|---|---|
| Revenue | $25,007M | $22,220M | +12.5% |
| Operating income | $1,551M | $1,793M | −13.5% |
| Operating margin | 6.2% | 8.1% | −190 bps |
| Net income | $1,598M | $1,648M | −3.0% |
Full-year revenue and net income both grew high-single digits. Q4 revenue grew double digits while GAAP operating margin compressed — spin-off costs, business-optimization charges, and mix all show up in the quarter.
Revenue Deep Dive
Segment revenue from the same release (full fiscal 2026):
| Segment | FY2026 | Share | YoY |
|---|---|---|---|
| Federal Express | $82,273M | 86.9% | +9% |
| FedEx Freight | $8,795M | 9.3% | −1% |
| Corporate / other / eliminations | $3,652M | 3.9% | n/a |
| Total | $94,720M | 100% | +8% |
Federal Express carried the growth; Freight revenue slipped 1% on the year and was already marked for separation. After June 1, RemainCo's top line is essentially the Express network plus corporate — the ledger's FY2026 balance sheet is still the combined entity.
The Margin Story
Annual GAAP figures from the 10-K / companyfacts feed (same numbers the ledger asserts):
| Period | Revenue | Net income | Net margin | Operating margin |
|---|---|---|---|---|
| FY2021 | $83,959M | $5,231M | 6.2% | 7.0% |
| FY2023 | $90,155M | $3,972M | 4.4% | 5.4% |
| FY2025 | $87,926M | $4,092M | 4.7% | 5.9% |
| FY2026 | $94,720M | $4,433M | 4.7% | 5.8% |
Net margin is still well below FY2021's 6.2%. Transformation savings recovered cost dollars, but yield and mix have not restored the pre-DRIVE earnings power. Tax on the year was $1,360M — the fence below makes that explicit next to operating costs.
The One Big Question: Does the Freight Spin Create Value or Just Deconsolidate Debt?
Freight is ~9% of FY2026 revenue. On a GAAP operating-income basis it contributed $616M (7.0% margin) versus Federal Express $5,912M (7.2% margin) — Freight is no longer the high-margin outlier the synthetic figures once implied. The spin did deliver a $4.1 billion cash dividend into FedEx Corporation (visible in the $13.3B year-end cash balance), funded by Freight's own notes and term loan.
| Entity (FY2026 GAAP) | Revenue (M) | Operating income (M) | Margin |
|---|---|---|---|
| Federal Express | $82,273 | $5,912 | 7.2% |
| FedEx Freight | $8,795 | $616 | 7.0% |
| Consolidated (incl. corporate) | $94,720 | $5,463 | 5.8% |
The open question is whether RemainCo's cost base shrinks with Freight or whether stranded overhead compresses Express margins further — FY2027 / CY2026 continuing-operations filings will answer that.
Tracking fiscal 2026 in plain text
Double-entry forces every dollar to reconcile, which is why the Beancount ledger is the audit. The income-statement transaction below is the fiscal 2026 annual filing (year ended May 31, 2026) — not the Q4 slice. Negative income, positive expenses, and the check that proves they sum to zero. Q4 headline numbers stay in the tables above.
; Revenue: 94720 | Cost: 89257 | R&D: 0 | SG&A: 0 | Other: -330 | Tax: 1360 | Net: 4433
; Check: -94720 + 89257 + 0 + 0 + (-330) + 1360 + 4433 = 0 ✓
2026-05-31 * "FedEx Corporation" "FY2026 Income Statement"
Income:Revenue -94720 MUSD
Expenses:CostOfRevenue 89257 MUSD
Expenses:ResearchAndDevelopment 0 MUSD
Expenses:SellingGeneralAdministrative 0 MUSD
Income:OtherNet -330 MUSD
Expenses:IncomeTax 1360 MUSD
Equity:Adjustments 4433 MUSD ; net income offset (RE set by balance assertion)That block is the period validated with bea check / yarn open-ledger-audit and pushed to open_ledger/fedex. FedEx does not report a CoR/SG&A/R&D split in XBRL — operating costs sit in CostsAndExpenses (mapped to Expenses:CostOfRevenue), R&D and SG&A are zero with a source comment, and Income:OtherNet absorbs nonoperating income. The balance sheet ties the same way: assets = liabilities + equity at each May 31, with residuals in …:Other noted against the filing subtotals. PP&E $42.0B and cash $13.3B (including the $4.1B Freight dividend) are the capital that either stays with RemainCo or left with Freight on June 1.
The Multi-Year Arc
| Period | Revenue | Net income | Net margin |
|---|---|---|---|
| FY2021 | $83,959M | $5,231M | 6.2% |
| FY2023 | $90,155M | $3,972M | 4.4% |
| FY2025 | $87,926M | $4,092M | 4.7% |
| FY2026 | $94,720M | $4,433M | 4.7% |
Revenue is up ~12.8% from FY2021 while net income is still ~15% below that peak — the thesis the ledger lets you test without trusting a chart. Transformation savings have to offset yield pressure, not just grow alongside volume.
The Verdict: Bull vs. Bear
Bull Case
- Transformation and Network 2.0 deliver another $800M–$1B of structural savings in the calendar-2026 transition year, lifting adjusted operating margin even with flat volume.
- Freight as a standalone, plus the $4.1B dividend already received, funds buybacks and a cleaner RemainCo balance sheet.
- Express yield and U.S. domestic package growth (+11% revenue in FY2026) compound as Freight noise drops out of the consolidating statements.
- The ledger's history shows FedEx has managed network cuts without service collapse — the next test is stranded-cost discipline.
Bear Case
- Q4 GAAP operating margin fell 190 bps YoY — cost takes and spin charges are still landing in the P&L.
- Freight's GAAP operating income collapsed to $616M from $1,489M in FY2025 — spinning a weaker piece does not automatically unlock value.
- RemainCo may keep stranded overhead that Express alone cannot absorb at a 7% segment margin.
- Trade-policy and purchased-transportation inflation remain explicit offsets in the company's own Q4 commentary.
Our Take: The FY2026 print proves FedEx can grow revenue past $94B and clear $1B of transformation savings, but Q4 margin compression and the Freight income drop mean the spin's value is still an open ledger question — literally. The June 1 separation and CY2026 continuing-operations filings will either confirm Express holds margin without Freight or expose stranded costs, and the next period file will show which.
