SUPPLEMENTAL HISTORICAL FINANCIAL INFORMATION
Effective June 1, 2026, FedEx Corporation (“FedEx”) changed its fiscal year end from May 31 to December 31. As a result, FedEx will report operating results covering the seven-month transition period from June 1, 2026 through December 31, 2026 (the “Transition Period”) in a Transition Report on Form 10-K. Following the Transition Period, FedEx will report its operating results on a calendar-year basis, beginning with the fiscal year ending December 31, 2027. Prior to the change in fiscal year end, FedEx reported financial results on a fiscal-year basis for the twelve months ending May 31. Below is an illustration of the reporting periods before and after the change in fiscal year end:
On June 1, 2026, FedEx c ompleted its spin-off of FedEx’s less-than-truckload freight transportation services businesses conducted through FedEx Freight (“FedEx Freight”) into a new, publicly traded company (the “Spin-Off”). The FedEx Freight business also included FedEx Custom Critical, Inc., LTL Select, and other operations historically included within the FedEx Freight reporting segment. As a result of the Spin-Off, FedEx no longer consolidates the FedEx Freight business and FedEx Freight is no longer a reportable segment.
In accordance with the requirements of U.S. Generally Accepted Accounting Principles (“GAAP”), following the Spin-Off, FedEx Freight is presented as discontinued operations and excluded from both continuing operations and segment results for all reporting periods, including comparable historical periods. Discontinued operations do not include historical intercompany transactions between FedEx and FedEx Freight, which were previously eliminated in consolidation. It also does not include allocations of shared service costs, such as data and technology, commercial back-office, and other general expenses, that were previously allocated to FedEx Freight through intercompany charges. Upon the Spin-Off, a portion of these costs transferred to FedEx Freight, while the remaining costs were retained by FedEx as stranded costs. Reductions to such costs are expected to be achieved through transition services agreements and cost management.
Beginning the first quarter of the Transition Period, FedEx realigned its internal reporting and management structure, resulting in the identification of two new reportable segments: Express U.S. Domestic and Express International. Prior to this change, these two segments comprised the Federal Express reportable segment. FedEx Dataworks, Inc., FedEx Office and Print Services, Inc., and FedEx Supply Chain, Inc. 1 continued to be included in Corporate, other, and eliminations for segment reporting purposes for the periods presented. Certain data and technology expenses previously recorded under FedEx Dataworks have been reclassified into the U.S. Domestic segment. In addition, FedEx Logistics, Inc. (“FedEx Logistics”) was moved from Corporate, other, and eliminations to Express International. These changes reflect the realignment of FedEx’s organizational structure and reporting regularly provided to our chief operating decision maker to assess performance and allocate resources. These changes had no impact on the consolidated results of operations or financial position of FedEx.
For informational purposes only, the supplemental historical financial information presented herein has been recast to reflect the above changes to FedEx’s quarterly and annual operating results, quarterly and annual segment results, and other relevant information and statistics, for each of the calendar quarters ended March 31 and June 30, 2026. This unaudited financial information is based on the historical consolidated financial statements after giving effect to the change in fiscal year end, the presentation of the FedEx Freight business as discontinued operations, and the presentation of FedEx’s new reportable segments. This supplemental information should be read in conjunction with FedEx's Annual Report on Form 10-K for the year ended May 31, 2026 and FedEx’s quarterly report on Form 10-Q for the quarterly period ended February 28, 2026. The unaudited supplemental historical financial information contained herein does not represent a restatement or reissuance of previously issued financial statements and is not indicative of future or annual results.
1 On October 1, 2026, FedEx completed the sale of its FedEx Supply Chain business to CMA CGM Group for $1.4 billion as part of a strategic portfolio streamlining effort. Upon completion of the sale, FedEx no longer consolidates FedEx Supply Chain and FedEx Supply Chain is no longer included in Corporate, other, and eliminations. -1-
Certain statements in this Exhibit 99.1 may be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements regarding expected cost savings, future financial targets, business strategies, and the assumptions underlying such expected cost savings, targets, strategies and statements. 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 we operate; uncertainty and additional volatility in the global trade environment; our ability to successfully implement our 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; our ability to achieve our cost reduction initiatives and financial performance goals, including our 2029 financial performance targets; our ability to achieve the anticipated benefits of the tax-free full separation of the FedEx Freight business into a new publicly traded company (the “FedEx Freight Spin-Off”); the possibility of disruption, including changes to existing business relationships, disputes, litigation, or unanticipated costs in connection with the FedEx Freight Spin- Off; 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 our global transformation program and other ongoing reviews and initiatives; a significant data breach or other disruption to our technology infrastructure; damage to our reputation or loss of brand equity; our ability to meet our labor and purchased transportation needs while controlling related costs; failure of third-party service providers to perform as expected, or disruptions in our 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 our ability to efficiently or fully utilize our 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; our ability to match capacity to shifting volume levels; an increase in self-insurance accruals and expenses; failure to receive or collect expected insurance coverage; 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; our 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 our 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 our 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; our 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; our ability to achieve or demonstrate progress on our goal of carbon-neutral operations by 2040; successful completion of future stock repurchases; and other factors which can be found in FedEx Corp.’s and its subsidiaries’ press releases and FedEx Corp.’s filings with the SEC, including our Annual Report on Form 10-K for the fiscal year ended May 31, 2026 and subsequent Quarterly Reports on Form 10-Q. Any forward-looking statement speaks only as of the date on which it is made. We do 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. -2-
2026 REVENUE: First Quarter Second Quarter ────────────────────────────────────────────────────────────────────────────── Express U.S. Domestic $ 13,553 $ 14,927 segment Express International 6,571 7,335 segment Corporate, other, and 664 668 eliminations TOTAL REVENUE 20,788 22,930 OPERATING EXPENSES: Salaries and employee 7,521 7,548 benefits Purchased transportation 5,373 6,125 Rentals and landing fees 1,141 1,175 Depreciation and 1,004 978 amortization Fuel 820 1,344 Maintenance and repairs 713 757 Other, net 3,297 3,676 TOTAL OPERATING EXPENSES 19,869 21,603 OPERATING INCOME: Express U.S. Domestic 880 1,379 segment Express International 119 108 segment Corporate, other, and -80 -160 eliminations TOTAL OPERATING INCOME 919 1,327 OTHER INCOME (EXPENSE): Other retirement plans 56 839 income Interest, net -128 -110 Other nonoperating, net -14 4,533 TOTAL OTHER INCOME -86 5,262 (EXPENSE) INCOME BEFORE INCOME 833 6,589 TAXES PROVISION FOR INCOME 114 515 TAXES INCOME FROM CONTINUING 719 6,074 OPERATIONS INCOME FROM DISCONTINUED OPERATIONS, NET 57 55 OF TAXES NET INCOME $ 776 $ 6,129 Continuing operations $ 3.02 $ 25.37 Discontinued operations 0.24 0.23 BASIC EARNINGS PER COMMON $ 3.26 $ 25.60 SHARE Continuing operations $ 2.99 $ 25.05 Discontinued operations 0.23 0.23 DILUTED EARNINGS PER $ 3.22 $ 25.28 COMMON SHARE DIVIDENDS DECLARED PER $ 1.44 $ 1.19 COMMON SHARE
(2) Operating days for the quarters ending March 31, June 30, September 30 and December 31 for calendar year 2027 are expected to be 63, 64, 64, and 63, respectively. Operating days for the quarters ending September 30, and December 31 for calendar year 2026 are expected to be 64 and 64, respectively. -5-
REVENUE: 2026 Package: First Quarter Second Quarter ────────────────────────────────────────────────────────────────────────────── International $ 2,373 $ 2,694 priority International economy 1,460 1,607 International 1,146 1,176 domestic(1) Total package revenue 4,979 5,477 Freight: International 656 743 priority International economy 564 613 Total freight revenue 1,220 1,356 Other 372 502 TOTAL REVENUE(2) 6,571 7,335 OPERATING EXPENSES: Salaries and employee 2,277 2,303 benefits Purchased 1,626 1,861 transportation Rentals and landing 372 381 fees Depreciation and 310 300 amortization Fuel 541 903 Maintenance and 215 227 repairs Other, net 1,111 1,252 TOTAL OPERATING 6,452 7,227 EXPENSES OPERATING INCOME $ 119 $ 108 OPERATING MARGIN(2) 1.8 % 1.5 %
(1) International domestic revenue and statistics relate to FedEx’s international intra-country operations.
Package Statistics Average daily package volume (ADV):(1) International priority International economy International domestic(2) 554 581 Total ADV 576 597 Revenue per package 2026 1,721 1,676 (yield): First Quarter 2,851 Second Quarter 2,854 ────────────────────────────────────────────────────────────────────────────── International priority $ 68.01 $ 72.45 International economy 40.26 42.07 International domestic(2) 10.57 10.96 Composite package yield $ 27.73 $ 29.98 Freight Statistics Average daily freight pounds: International priority 4,999 5,248 International economy 12,256 12,719 Total average daily 17,255 17,967 freight pounds Revenue per pound (yield): International priority $ 2.08 $ 2.21 International economy 0.73 0.75 Composite freight yield $ 1.12 $ 1.18 Operating Days(3) 63 64
(2) International domestic revenue and statistics relate to FedEx’s international intra-country operations.
(3) Operating days for the quarters ending March 31, June 30, September 30 and December 31 for calendar year 2027 are expected to be 63, 64, 64, and 63, respectively. Operating days for the quarters ending September 30, and December 31 for calendar year 2026 are expected to be 64 and 64, respectively. -7- RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES
The supplemental historical financial information within this Exhibit 99.1 is presented in accordance with accounting principles generally accepted in the United States (“GAAP” or “reported”). To supplement the reporting of the information determined in accordance with GAAP with certain non-GAAP (or “adjusted”) financial measures, included in tables below are the adjusted operating income and margin, income taxes, net income, and diluted earnings per share, adjusted Express U.S. Domestic segment operating income and margin, and adjusted Express International segment operating income and margin for the calendar quarters ended March 31 and June 30, 2026. These financial measures are provided on a continuing operations basis to assist investors with assessing trends in FedEx’s underlying businesses and exclude the impact of discontinued operations, as well as the impact of the following items (as applicable), which are unrelated to FedEx’s core operating performance:
• Gain/Loss on retained investment in FedEx Freight : On June 1, 2026, FedEx completed the spin-off of FedEx Freight into an independent, publicly traded company (the “Spin-Off”). Following the Spin-Off, we retained a 19.9% ownership interest in FedEx Freight, which is accounted for as an equity security and recorded at fair value. Changes in fair value are recognized through net income.
• Restructuring, exit and other costs incurred: These costs relate to the multi- year restructuring, business realignment, and exit activities designed to improve operating efficiency, reduce costs, or optimize FedEx’s business portfolio. These costs also include those related to aircraft impairment, the Spin-Off, and FedEx’s change in fiscal year end from May 31 to December 31. These costs were primarily related to severance, incentive payments to contracted service providers, and professional services.
• Mark-To-Market (“MTM”) adjustments for retirement plan accounting: FedEx’s defined benefit pension plans are measured using actuarial techniques that reflect management’s assumptions for expected returns on assets (“EROA”), discount rate, and demographic experience such as salary increases, expected retirement, mortality, and employee turnover. Differences between these assumptions and actual experience are recognized through MTM accounting.
The income tax effect of these costs is calculated based upon the tax laws and statutory income tax rates applicable in the tax jurisdiction(s) of the underlying non-GAAP adjustment. The impact of these non-GAAP items on the company's effective tax rate represents the difference in the effective tax rate calculated with and without the non-GAAP adjustment.
These adjusted financial measures facilitate analysis and comparisons of FedEx’s ongoing business operations because they exclude items that may not be indicative of, or are unrelated to, the company's and business segments' core operating performance, and may assist investors with comparisons to prior periods and assessing trends in FedEx’s underlying businesses. These adjustments are consistent with how management views the businesses. Management uses these non-GAAP financial measures in making financial, operating, and planning decisions and evaluating the company's and each business segments' ongoing performance.
These non-GAAP financial measures are intended to supplement and should be read together with, and are not an alternative or substitute for, and should not be considered superior to, the reported financial results. Accordingly, users of the financial statements should not place undue reliance on these non-GAAP financial measures. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies' non-GAAP financial measures having the same or similar names. As required by SEC rules, the tables below present a reconciliation of the non-GAAP financial measures to the most directly comparable GAAP measures for each period presented. -8-
(1) Income taxes are based on the company’s approximate statutory tax rates applicable to each transaction.
(3) These expenses were recognized at Express U.S. Domestic, Express International, and Corporate, other, and eliminations. -9-
(1) Income taxes are based on the company’s approximate statutory tax rates applicable to each transaction.
(4) These expenses were recognized at Express U.S. Domestic, Express International, and Corporate, other, and eliminations. -10-
Full text with the tables
Exhibit 99.1
SUPPLEMENTAL HISTORICAL FINANCIAL INFORMATION
Effective June 1, 2026, FedEx Corporation (“FedEx”) changed its fiscal year end
from May 31 to December 31. As a result, FedEx will report operating results
covering the seven-month transition period from June 1, 2026 through December
31, 2026 (the “Transition Period”) in a Transition Report on Form 10-K.
Following the Transition Period, FedEx will report its operating results on a
calendar-year basis, beginning with the fiscal year ending December 31, 2027.
Prior to the change in fiscal year end, FedEx reported financial results on a
fiscal-year basis for the twelve months ending May 31. Below is an illustration
of the reporting periods before and after the change in fiscal year end:
On June 1, 2026, FedEx c ompleted its spin-off of FedEx’s less-than-truckload
freight transportation services businesses conducted through FedEx Freight
(“FedEx Freight”) into a new, publicly traded company (the “Spin-Off”). The
FedEx Freight business also included FedEx Custom Critical, Inc., LTL Select,
and other operations historically included within the FedEx Freight reporting
segment. As a result of the Spin-Off, FedEx no longer consolidates the FedEx
Freight business and FedEx Freight is no longer a reportable segment.
In accordance with the requirements of U.S. Generally Accepted Accounting
Principles (“GAAP”), following the Spin-Off, FedEx Freight is presented as
discontinued operations and excluded from both continuing operations and segment
results for all reporting periods, including comparable historical periods.
Discontinued operations do not include historical intercompany transactions
between FedEx and FedEx Freight, which were previously eliminated in
consolidation. It also does not include allocations of shared service costs,
such as data and technology, commercial back-office, and other general expenses,
that were previously allocated to FedEx Freight through intercompany charges.
Upon the Spin-Off, a portion of these costs transferred to FedEx Freight, while
the remaining costs were retained by FedEx as stranded costs. Reductions to such
costs are expected to be achieved through transition services agreements and
cost management.
Beginning the first quarter of the Transition Period, FedEx realigned its
internal reporting and management structure, resulting in the identification of
two new reportable segments: Express U.S. Domestic and Express International.
Prior to this change, these two segments comprised the Federal Express
reportable segment. FedEx Dataworks, Inc., FedEx Office and Print Services,
Inc., and FedEx Supply Chain, Inc. 1 continued to be included in Corporate,
other, and eliminations for segment reporting purposes for the periods
presented. Certain data and technology expenses previously recorded under FedEx
Dataworks have been reclassified into the U.S. Domestic segment. In addition,
FedEx Logistics, Inc. (“FedEx Logistics”) was moved from Corporate, other, and
eliminations to Express International. These changes reflect the realignment of
FedEx’s organizational structure and reporting regularly provided to our chief
operating decision maker to assess performance and allocate resources. These
changes had no impact on the consolidated results of operations or financial
position of FedEx.
For informational purposes only, the supplemental historical financial
information presented herein has been recast to reflect the above changes to
FedEx’s quarterly and annual operating results, quarterly and annual segment
results, and other relevant information and statistics, for each of the calendar
quarters ended March 31 and June 30, 2026. This unaudited financial information
is based on the historical consolidated financial statements after giving effect
to the change in fiscal year end, the presentation of the FedEx Freight business
as discontinued operations, and the presentation of FedEx’s new reportable
segments. This supplemental information should be read in conjunction with
FedEx's Annual Report on Form 10-K for the year ended May 31, 2026 and FedEx’s
quarterly report on Form 10-Q for the quarterly period ended February 28, 2026.
The unaudited supplemental historical financial information contained herein
does not represent a restatement or reissuance of previously issued financial
statements and is not indicative of future or annual results.
1 On October 1, 2026, FedEx completed the sale of its FedEx Supply Chain
business to CMA CGM Group for $1.4 billion as part of a strategic portfolio
streamlining effort. Upon completion of the sale, FedEx no longer consolidates
FedEx Supply Chain and FedEx Supply Chain is no longer included in Corporate,
other, and eliminations.
-1-
Exhibit 99.1
FORWARD-LOOKING STATEMENTS
Certain statements in this Exhibit 99.1 may be considered forward-looking
statements within the meaning of the Private Securities Litigation Reform Act of
1995, such as statements regarding expected cost savings, future financial
targets, business strategies, and the assumptions underlying such expected cost
savings, targets, strategies and statements. 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 we operate;
uncertainty and additional volatility in the global trade environment; our
ability to successfully implement our 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; our ability to achieve
our cost reduction initiatives and financial performance goals, including our
2029 financial performance targets; our ability to achieve the anticipated
benefits of the tax-free full separation of the FedEx Freight business into a
new publicly traded company (the “FedEx Freight Spin-Off”); the possibility of
disruption, including changes to existing business relationships, disputes,
litigation, or unanticipated costs in connection with the FedEx Freight Spin-
Off; 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 our global transformation program and
other ongoing reviews and initiatives; a significant data breach or other
disruption to our technology infrastructure; damage to our reputation or loss of
brand equity; our ability to meet our labor and purchased transportation needs
while controlling related costs; failure of third-party service providers to
perform as expected, or disruptions in our 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 our ability to
efficiently or fully utilize our 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; our ability to match capacity to shifting volume levels; an
increase in self-insurance accruals and expenses; failure to receive or collect
expected insurance coverage; 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; our 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 our 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 our
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; our 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; our
ability to achieve or demonstrate progress on our goal of carbon-neutral
operations by 2040; successful completion of future stock repurchases; and other
factors which can be found in FedEx Corp.’s and its subsidiaries’ press releases
and FedEx Corp.’s filings with the SEC, including our Annual Report on Form 10-K
for the fiscal year ended May 31, 2026 and subsequent Quarterly Reports on Form
10-Q. Any forward-looking statement speaks only as of the date on which it is
made. We do 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.
-2-
FEDEX CORPORATION
QUARTERLY STATEMENTS OF INCOME
RECASTED TO REFLECT CHANGE IN FISCAL YEAR END TO DECEMBER 31
RECASTED TO PRESENT FEDEX FREIGHT AS DISCONTINUED OPERATIONS
RECASTED TO PRESENT NEW SEGMENT REPORTING STRUCTURE
(IN MILLIONS, EXCEPT PER SHARE AMOUNTS)
(unaudited)
2026
REVENUE: First Quarter Second Quarter
──────────────────────────────────────────────────────────────────────────────
Express U.S. Domestic $ 13,553 $ 14,927
segment
Express International 6,571 7,335
segment
Corporate, other, and 664 668
eliminations
TOTAL REVENUE 20,788 22,930
OPERATING EXPENSES:
Salaries and employee 7,521 7,548
benefits
Purchased transportation 5,373 6,125
Rentals and landing fees 1,141 1,175
Depreciation and 1,004 978
amortization
Fuel 820 1,344
Maintenance and repairs 713 757
Other, net 3,297 3,676
TOTAL OPERATING EXPENSES 19,869 21,603
OPERATING INCOME:
Express U.S. Domestic 880 1,379
segment
Express International 119 108
segment
Corporate, other, and -80 -160
eliminations
TOTAL OPERATING INCOME 919 1,327
OTHER INCOME (EXPENSE):
Other retirement plans 56 839
income
Interest, net -128 -110
Other nonoperating, net -14 4,533
TOTAL OTHER INCOME -86 5,262
(EXPENSE)
INCOME BEFORE INCOME 833 6,589
TAXES
PROVISION FOR INCOME 114 515
TAXES
INCOME FROM CONTINUING 719 6,074
OPERATIONS
INCOME FROM DISCONTINUED
OPERATIONS, NET 57 55
OF TAXES
NET INCOME $ 776 $ 6,129
Continuing operations $ 3.02 $ 25.37
Discontinued operations 0.24 0.23
BASIC EARNINGS PER COMMON $ 3.26 $ 25.60
SHARE
Continuing operations $ 2.99 $ 25.05
Discontinued operations 0.23 0.23
DILUTED EARNINGS PER $ 3.22 $ 25.28
COMMON SHARE
DIVIDENDS DECLARED PER $ 1.44 $ 1.19
COMMON SHARE
-3-
EXPRESS U.S. DOMESTIC SEGMENT
QUARTERLY STATEMENTS OF INCOME
RECASTED TO REFLECT CHANGE IN FISCAL YEAR END TO DECEMBER 31
RECASTED TO PRESENT FEDEX FREIGHT AS DISCONTINUED OPERATIONS
RECASTED TO PRESENT NEW SEGMENT REPORTING STRUCTURE
(IN MILLIONS)
(unaudited)
REVENUE:
U.S. 2026 Second
Package: First Quarter Quarter
──────────────────────────────────────────────────────────────────────────────
U.S. $ 2,858 $ 3,121
priority
U.S. 1,372 1,441
deferred
U.S. ground 8,764 9,777
Total
package 12,994 14,339
revenue
U.S. Freight 317 349
Other 242 239
TOTAL 13,553 14,927
REVENUE(1)
OPERATING
EXPENSES:
Salaries and
employee 4,785 4,791
benefits
Purchased 3,700 4,199
transportat…
Rentals and 667 687
landing fees
Depreciation
and 666 641
amortization
Fuel 279 440
Maintenance 471 500
and repairs
Other, net 2,105 2,290
TOTAL
OPERATING 12,673 13,548
EXPENSES
OPERATING $ 880 $ 1,379
INCOME
OPERATING 6.5 % 9.2 %
MARGIN(1)
(1) Amounts reflected are from continuing operations.
-4-
EXPRESS U.S. DOMESTIC SEGMENT
QUARTERLY OPERATING STATISTICS
RECASTED TO REFLECT CHANGE IN FISCAL YEAR END TO DECEMBER 31
RECASTED TO PRESENT FEDEX FREIGHT AS DISCONTINUED OPERATIONS
RECASTED TO PRESENT NEW SEGMENT REPORTING STRUCTURE
(IN THOUSANDS, EXCEPT YIELD AMOUNTS)
(unaudited)
Package Statistics
Average daily package
volume (ADV):(1)
U.S. priority
U.S. deferred
U.S. ground commercial
U.S. ground home 1,643 1,703
delivery/economy 1,070 1,081
Total U.S. domestic ADV 4,205 4,481
Revenue per package 2026 6,798 7,052
(yield): First Quarter 13,716 Second Quarter 14,317
──────────────────────────────────────────────────────────────────────────────
U.S. priority $ 27.61 $ 28.63
U.S. deferred 20.35 20.82
U.S. ground 12.64 13.25
Total U.S. domestic $ 15.04 $ 15.65
composite
Freight Statistics
Average daily freight
pounds:
U.S. freight 2,107 2,290
Revenue per pound
(yield):
U.S. freight $ 2.39 $ 2.38
Operating Days(2) 63 64
(1) ADV is calculated on a 5-day-per-week basis.
(2) Operating days for the quarters ending March 31, June 30, September 30 and
December 31 for calendar year 2027 are expected to be 63, 64, 64, and 63,
respectively. Operating days for the quarters ending September 30, and December
31 for calendar year 2026 are expected to be 64 and 64, respectively.
-5-
EXPRESS INTERNATIONAL SEGMENT
QUARTERLY STATEMENTS OF INCOME
RECASTED TO REFLECT CHANGE IN FISCAL YEAR END TO DECEMBER 31
RECASTED TO PRESENT FEDEX FREIGHT AS DISCONTINUED OPERATIONS
RECASTED TO PRESENT NEW SEGMENT REPORTING STRUCTURE
(IN MILLIONS)
(unaudited)
REVENUE: 2026
Package: First Quarter Second Quarter
──────────────────────────────────────────────────────────────────────────────
International $ 2,373 $ 2,694
priority
International economy 1,460 1,607
International 1,146 1,176
domestic(1)
Total package revenue 4,979 5,477
Freight:
International 656 743
priority
International economy 564 613
Total freight revenue 1,220 1,356
Other 372 502
TOTAL REVENUE(2) 6,571 7,335
OPERATING EXPENSES:
Salaries and employee 2,277 2,303
benefits
Purchased 1,626 1,861
transportation
Rentals and landing 372 381
fees
Depreciation and 310 300
amortization
Fuel 541 903
Maintenance and 215 227
repairs
Other, net 1,111 1,252
TOTAL OPERATING 6,452 7,227
EXPENSES
OPERATING INCOME $ 119 $ 108
OPERATING MARGIN(2) 1.8 % 1.5 %
(1) International domestic revenue and statistics relate to FedEx’s
international intra-country operations.
(2) Amounts reflected are from continuing operations.
-6-
EXPRESS INTERNATIONAL SEGMENT
QUARTERLY OPERATING STATISTICS
RECASTED TO REFLECT CHANGE IN FISCAL YEAR END TO DECEMBER 31
RECASTED TO PRESENT FEDEX FREIGHT AS DISCONTINUED OPERATIONS
RECASTED TO PRESENT NEW SEGMENT REPORTING STRUCTURE
(IN THOUSANDS, EXCEPT YIELD AMOUNTS)
(unaudited)
Package Statistics
Average daily package
volume (ADV):(1)
International priority
International economy
International domestic(2) 554 581
Total ADV 576 597
Revenue per package 2026 1,721 1,676
(yield): First Quarter 2,851 Second Quarter 2,854
──────────────────────────────────────────────────────────────────────────────
International priority $ 68.01 $ 72.45
International economy 40.26 42.07
International domestic(2) 10.57 10.96
Composite package yield $ 27.73 $ 29.98
Freight Statistics
Average daily freight
pounds:
International priority 4,999 5,248
International economy 12,256 12,719
Total average daily 17,255 17,967
freight pounds
Revenue per pound
(yield):
International priority $ 2.08 $ 2.21
International economy 0.73 0.75
Composite freight yield $ 1.12 $ 1.18
Operating Days(3) 63 64
(1) ADV is calculated on a 5-day-per-week basis.
(2) International domestic revenue and statistics relate to FedEx’s
international intra-country operations.
(3) Operating days for the quarters ending March 31, June 30, September 30 and
December 31 for calendar year 2027 are expected to be 63, 64, 64, and 63,
respectively. Operating days for the quarters ending September 30, and December
31 for calendar year 2026 are expected to be 64 and 64, respectively.
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RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES
The supplemental historical financial information within this Exhibit 99.1 is
presented in accordance with accounting principles generally accepted in the
United States (“GAAP” or “reported”). To supplement the reporting of the
information determined in accordance with GAAP with certain non-GAAP (or
“adjusted”) financial measures, included in tables below are the adjusted
operating income and margin, income taxes, net income, and diluted earnings per
share, adjusted Express U.S. Domestic segment operating income and margin, and
adjusted Express International segment operating income and margin for the
calendar quarters ended March 31 and June 30, 2026. These financial measures are
provided on a continuing operations basis to assist investors with assessing
trends in FedEx’s underlying businesses and exclude the impact of discontinued
operations, as well as the impact of the following items (as applicable), which
are unrelated to FedEx’s core operating performance:
• Gain/Loss on retained investment in FedEx Freight : On June 1, 2026, FedEx
completed the spin-off of FedEx Freight into an independent, publicly traded
company (the “Spin-Off”). Following the Spin-Off, we retained a 19.9% ownership
interest in FedEx Freight, which is accounted for as an equity security and
recorded at fair value. Changes in fair value are recognized through net income.
• Restructuring, exit and other costs incurred: These costs relate to the multi-
year restructuring, business realignment, and exit activities designed to
improve operating efficiency, reduce costs, or optimize FedEx’s business
portfolio. These costs also include those related to aircraft impairment, the
Spin-Off, and FedEx’s change in fiscal year end from May 31 to December 31.
These costs were primarily related to severance, incentive payments to
contracted service providers, and professional services.
• Mark-To-Market (“MTM”) adjustments for retirement plan accounting: FedEx’s
defined benefit pension plans are measured using actuarial techniques that
reflect management’s assumptions for expected returns on assets (“EROA”),
discount rate, and demographic experience such as salary increases, expected
retirement, mortality, and employee turnover. Differences between these
assumptions and actual experience are recognized through MTM accounting.
The income tax effect of these costs is calculated based upon the tax laws and
statutory income tax rates applicable in the tax jurisdiction(s) of the
underlying non-GAAP adjustment. The impact of these non-GAAP items on the
company's effective tax rate represents the difference in the effective tax rate
calculated with and without the non-GAAP adjustment.
These adjusted financial measures facilitate analysis and comparisons of FedEx’s
ongoing business operations because they exclude items that may not be
indicative of, or are unrelated to, the company's and business segments' core
operating performance, and may assist investors with comparisons to prior
periods and assessing trends in FedEx’s underlying businesses. These adjustments
are consistent with how management views the businesses. Management uses these
non-GAAP financial measures in making financial, operating, and planning
decisions and evaluating the company's and each business segments' ongoing
performance.
These non-GAAP financial measures are intended to supplement and should be read
together with, and are not an alternative or substitute for, and should not be
considered superior to, the reported financial results. Accordingly, users of
the financial statements should not place undue reliance on these non-GAAP
financial measures. Because non-GAAP financial measures are not standardized, it
may not be possible to compare these financial measures with other companies'
non-GAAP financial measures having the same or similar names. As required by SEC
rules, the tables below present a reconciliation of the non-GAAP financial
measures to the most directly comparable GAAP measures for each period
presented.
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RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
RECASTED TO REFLECT CHANGE IN FISCAL YEAR END TO DECEMBER 31
RECASTED TO PRESENT FEDEX FREIGHT AS DISCONTINUED OPERATIONS
RECASTED TO PRESENT NEW SEGMENT REPORTING STRUCTURE
(IN MILLIONS, EXCEPT OPERATING MARGIN AMOUNTS)
(unaudited)
FIRST QUARTER CALENDAR 2026
FedEx Corporation
Do…
in Dil…
mi… Ear…
ex… Oper… Inc… Net Per
EPS Inco… Marg… Tax… Inco… Sha…
──────────────────────────────────────────────────────────────────────────────
GA… $ 919 4.4 % $ 114 $ 719 $ 2.99
me…
Re…
ex…
and 82 0.4 % 20 63 0.26
ot…
co…
No… $ 1,0… 4.8 % $ 134 $ 782 $ 3.25
me…
Express U.S. Domestic Segment
Operating
Dollars in millions Income Margin
────────────────────────────────────────────────────────────────────────────
GAAP measure $ 880 6.5 %
Restructuring, exit and other costs(3) 59 0.4 %
Non-GAAP measure $ 939 6.9 %
Express International Segment
Operating
Dollars in millions Income Margin
────────────────────────────────────────────────────────────────────────────
GAAP measure $ 119 1.8 %
Restructuring, exit and other costs(3) 23 0.4 %
Non-GAAP measure $ 142 2.2 %
(1) Income taxes are based on the company’s approximate statutory tax rates
applicable to each transaction.
(2) Effect of “Other income (expense)” on net income amount not shown.
(3) These expenses were recognized at Express U.S. Domestic, Express
International, and Corporate, other, and eliminations.
-9-
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
RECASTED TO REFLECT CHANGE IN FISCAL YEAR END TO DECEMBER 31
RECASTED TO PRESENT FEDEX FREIGHT AS DISCONTINUED OPERATIONS
RECASTED TO PRESENT NEW SEGMENT REPORTING STRUCTURE
(IN MILLIONS, EXCEPT OPERATING MARGIN AMOUNTS)
(unaudited)
SECOND QUARTER CALENDAR 2026
FedEx Corporation
Do…
in Dilu…
mi… Earn…
ex… Ope… Inc… Net Per
EPS Inc… Mar… Tax… Inc… Share
──────────────────────────────────────────────────────────────────────────────
GA… $ 1,3… 5.8 % $ 515 $ 6,0… $ 25.…
me…
Re…
ex…
and 295 1.3 % 67 229 0.94
ot…
co…
Ga…
on
re…
in… — — % — -4,… -18…
in
Fe…
Fr…
MTM
re…
pl… — — % -183 -604 -2.…
ac…
ad…
No… $ 1,6… 7.1 % $ 399 $ 1,2… $ 4.98
me…
Express U.S. Domestic Segment
Operating
Dollars in millions Income Margin
──────────────────────────────────────────────────────────────────────────────
GAAP measure $ 1,379 9.2 %
Restructuring, exit and other 151 1.1 %
costs(4)
Non-GAAP measure $ 1,530 10.3 %
Express International Segment
Operating
Dollars in millions Income Margin
────────────────────────────────────────────────────────────────────────────
GAAP measure $ 108 1.5 %
Restructuring, exit and other costs(4) 125 1.7 %
Non-GAAP measure $ 233 3.2 %
(1) Income taxes are based on the company’s approximate statutory tax rates
applicable to each transaction.
(2) Effect of “Other income (expense)” on net income amount not shown.
(3) These expenses were recognized at Corporate, other, and eliminations.
(4) These expenses were recognized at Express U.S. Domestic, Express
International, and Corporate, other, and eliminations.
-10-