v3.26.1
BUSINESS SEGMENTS AND DISAGGREGATED REVENUE
 9 Months Ended
Feb. 28, 2026
Segment Reporting [Abstract]  
BUSINESS SEGMENTS AND DISAGGREGATED REVENUE
NOTE 7: BUSINESS SEGMENTS AND DISAGGREGATED REVENUE
Federal Express and FedEx Freight represent our major service lines and constitute our reportable segments. Our reportable segments include the following businesses:
Federal Express Segment
Federal Express (express transportation, small-package ground delivery, and freight transportation)
FedEx Freight Segment
FedEx Freight (LTL freight transportation)
FedEx Custom Critical, Inc. (time-critical transportation)
References to our transportation segments include, collectively, the Federal Express segment and the FedEx Freight segment.
Our Chief Executive Officer is our chief operating decision maker (“CODM”). The CODM is responsible for the company’s operating strategy, growth, and profitability and reviews financial information for our two reportable segments. The CODM uses operating income as the primary measure of segment performance because it reflects the underlying business performance and provides the CODM with a basis for making resource allocation decisions. Operating income is defined as income before other income (expense), interest expense, and income tax expense. Our CODM also utilizes operating income in the annual budget and monthly forecasting
processes and considers forecast-to-actual variances on a monthly basis when making resource allocation decisions. Our CODM regularly reviews significant expense details, which include salaries and employee benefits, purchased transportation, rentals and landing fees, depreciation and amortization, fuel, maintenance and repairs, separation and other costs, business optimization costs, and other operating expenses. These expense categories are included within operating expenses in the accompanying unaudited condensed consolidated statements of income and are used by the CODM in assessing performance and allocating resources.
The Federal Express segment operates combined sales, marketing, administrative, and information-technology functions in shared service operations for U.S. customers of our major business units and certain back-office support to FedEx Freight and our other operating segments which allows us to obtain synergies from the combination of these functions. We allocate the net operating costs of these services to reflect the full cost of operating our businesses in the results of those segments. We review and evaluate the performance of FedEx Freight and our other operating segments based on operating income inclusive of these allocations.
Operating expenses for our FedEx Freight segment include allocations of these services from the Federal Express segment. These allocations also include charges and credits for administrative services provided between operating companies. The allocations of net operating costs are based on metrics such as relative revenue or estimated services provided. We believe these allocations approximate the net cost of providing these functions. Our allocation methodologies are refined periodically, as necessary, to reflect changes in our businesses.
Corporate, Other, and Eliminations
Corporate and other includes corporate headquarters costs for executive officers and certain legal and finance functions, certain other costs and credits not attributed to our core business, and certain costs associated with developing integrated business solutions through our FedEx Dataworks, Inc. (“FedEx Dataworks”) operating segment. FedEx Dataworks is focused on creating new digital revenue streams using proven FedEx intelligence to digitize supply chains and create new opportunities for our customers and team members.
Also included in Corporate and other is the FedEx Office and Print Services, Inc. (“FedEx Office”) operating segment, which provides an array of document and business services and retail access to our customers for our package transportation businesses, and the FedEx Logistics, Inc. (“FedEx Logistics”) operating segment, which provides integrated supply chain management solutions, specialty transportation, customs brokerage, and global ocean and air freight forwarding.
The results of Corporate, other, and eliminations are not allocated to the other business segments.
Certain FedEx operating companies provide transportation and related services for other FedEx companies outside their reportable segment in order to optimize our resources. Billings for such services are based on negotiated rates and are reflected as revenue of the billing segment. These rates are adjusted from time to time based on market conditions. Such intersegment revenue and expenses are eliminated in our consolidated results and are not separately identified in the following segment information because the amounts are not material.
The following table presents segment information for the periods ended February 28, 2026 and 2025 (in millions):
Three Months EndedNine Months Ended
February 28, 2026February 28, 2025February 28, 2026February 28, 2025
Federal Express segment:
Revenue$21,154 $19,181 $60,703 $56,327 
Operating expenses:
Salaries and employee benefits7,231 6,390 20,571 18,920 
Purchased transportation5,665 5,196 16,218 15,064 
Rentals and landing fees1,057 1,002 3,098 2,975 
Depreciation and amortization971 926 2,856 2,779 
Fuel751 777 2,290 2,566 
Maintenance and repairs670 672 2,180 2,106 
Separation and other costs37 — 60 — 
Business optimization costs67 92 95 341 
Intercompany charges(206)(199)(668)(591)
Other3,339 3,031 9,742 8,868 
Total operating expenses19,582 17,887 56,442 53,028 
Operating income$1,572 $1,294 $4,261 $3,299 
Three Months EndedNine Months Ended
February 28, 2026February 28, 2025February 28, 2026February 28, 2025
FedEx Freight segment:
Revenue$1,991 $2,089 $6,387 $6,595 
Operating expenses:
Salaries and employee benefits977 939 2,935 2,899 
Purchased transportation193 202 591 602 
Rentals and landing fees74 72 224 215 
Depreciation and amortization112 113 335 335 
Fuel104 112 327 344 
Maintenance and repairs73 85 243 255 
Separation and other costs126 — 287 — 
Intercompany allocations134 142 449 433 
Other190 163 538 500 
Total operating expenses1,983 1,828 5,929 5,583 
Operating income$8 $261 $458 $1,012 
Reconciliation of segment revenue:
Total Federal Express and FedEx Freight revenue$23,145 $21,270 $67,090 $62,922 
Other revenue(1)
855 890 2,623 2,784 
Total consolidated revenue$24,000 $22,160 $69,713 $65,706 
Reconciliation of segment operating income to income before income taxes:
Total Federal Express and FedEx Freight operating income$1,580 $1,555 $4,719 $4,311 
Other operating loss(1)
(232)(263)(807)(887)
Operating income1,348 1,292 3,912 3,424 
Other (expense) income:
Interest, net(138)(116)(392)(302)
Other retirement plans, net59 50 178 149 
Other, net(2)
(6)(45)(12)(53)
Total other (expense) income(85)(111)(226)(206)
Income before income taxes$1,263 $1,181 $3,686 $3,218 
(1)Revenue and operating loss from segments below the quantitative thresholds are attributable to operating segments contained within “Corporate, other, and eliminations.” These operating segments include FedEx Corporate, FedEx Office, FedEx Logistics, and FedEx Dataworks.
(2)Includes costs related to the planned spin-off of FedEx Freight of $1 million and $3 million for the three- and nine-month periods ended February 28, 2026, respectively, included in “Corporate, other, and eliminations.” Includes costs related to the planned spin-off of $18 million for the three- and nine-month periods ended February 28, 2025 included in “Corporate, other, and eliminations.”

The following table provides a reconciliation of segment assets to our unaudited condensed consolidated financial statement totals as of February 28, 2026 and May 31, 2025 (in millions):
Federal
Express
Segment		FedEx
Freight
Segment		Corporate,
other, and
eliminations		Consolidated
Total
Segment assets
February 28, 2026 (Unaudited)$74,570 $17,425 $2,738 $94,733 
May 31, 202574,154 12,899 574 87,627 
The following table provides a reconciliation of reportable segment capital expenditures to consolidated totals for the nine-month periods ended February 28, 2026 and 2025 (in millions):
Federal
Express
Segment		FedEx
Freight
Segment		Corporate,
other, and eliminations		Consolidated
Total
Capital expenditures
February 28, 2026 $1,990 $284 $61 $2,335 
February 28, 20252,145 359 78 2,582 
The following table presents revenue by service type for the periods ended February 28, 2026 and 2025 (in millions):
Three Months EndedNine Months Ended
February 28, 2026February 28, 2025February 28, 2026February 28, 2025
Revenue by service type
Federal Express segment:
Package:
U.S. priority
$2,901 $2,646 $8,511 $7,800 
U.S. deferred
1,590 1,386 4,259 3,736 
U.S. ground
9,860 8,986 27,687 25,298 
Total U.S. domestic package revenue
14,351 13,018 40,457 36,834 
International priority
2,361 2,097 7,002 6,534 
International economy
1,488 1,465 4,353 4,413 
Total international export package revenue
3,849 3,562 11,355 10,947 
International domestic(1)
1,153 1,078 3,545 3,380 
Total package revenue
19,353 17,658 55,357 51,161 
Freight:
U.S.
297 286 904 1,238 
International priority
627 551 1,839 1,717 
International economy
538 470 1,648 1,462 
Total freight revenue
1,462 1,307 4,391 4,417 
Other
339 216 955 749 
Total Federal Express segment
21,154 19,181 60,703 56,327 
FedEx Freight segment1,991 2,089 6,387 6,595 
Other and eliminations(2)
855 890 2,623 2,784 
$24,000 $22,160 $69,713 $65,706 
(1)International domestic revenue relates to our intra-country operations.
(2)Includes the FedEx Logistics, FedEx Office, and FedEx Dataworks operating segments.
The following table presents geographic revenue information for the periods ended February 28, 2026 and 2025 (in millions):
Three Months EndedNine Months Ended
February 28, 2026February 28, 2025February 28, 2026February 28, 2025
Geographical information(1)
Revenue:
U.S.$17,445 $16,123 $50,140 $46,992 
International:
Federal Express segment6,265 5,750 18,681 17,749 
FedEx Freight segment55 58 177 185 
Other235 229 715 780 
Total international revenue6,555 6,037 19,573 18,714 
$24,000 $22,160 $69,713 $65,706 
(1)International revenue includes shipments that either originate in or are destined to locations outside the United States, which could include U.S. payors.
The following table presents geographic noncurrent asset information as of February 28, 2026 and May 31, 2025 (in millions):
Geographical information(1)
February 28, 2026 (unaudited)May 31, 2025
Noncurrent assets:
U.S.$56,470 $57,040 
International12,786 12,201 
$69,256 $69,241 
(1)Noncurrent assets include property and equipment, operating lease right-of-use assets, goodwill, and other long-term assets. Our flight equipment is registered in the U.S. and is included as U.S. assets; however, many of our aircraft operate internationally.