FedEx Corporation (0QZX.L) Q1 2026 Earnings Report

FedEx reported QQ1 2026 revenue of $22.244 billion, up 3.1% year over year and roughly flat versus the prior quarter (QoQ +0.11%). The quarter delivered a solid gross profit of $5.786 billion, resulting in a gross margin of 26.0%, aided by favorable mix and pricing actions within the network. Operating income totaled $1.186 billion, yielding an operating margin of 5.33%. Net income was $824 million with earnings per diluted share of $3.46, up about 7.4% YoY but down roughly 49% versus the prior quarter. Free cash flow for the quarter was $1.093 billion, supported by $1.716 billion of cash from operating activities and capital expenditures of $623 million. The company paid $345 million in dividends and repurchased $500 million of common stock, contributing to a net cash inflow of $664 million for the quarter and ending with about $6.17 billion in cash on hand. On the balance sheet, FedEx carried total debt of $17.62 billion and net debt of $11.45 billion, with total assets of $130.5 billion and stockholders’ equity of $96.8 billion, leaving a current ratio of approximately 1.25x. The quarterly results underscore a bifurcated picture: stronger gross profitability and cash generation amid continued operating expense headwinds and higher overall cost structure, which pressured operating margin and, more acutely, quarterly net income on a QoQ basis. The earnings backdrop remains supportive of a shareholder-friendly stance (dividends and buybacks continued), but leverage remains an important consideration, with a net-debt-to-EBITDA dynamic that warrants close monitoring as a potential driver of capital allocation decisions going forward. Management commentary (as typically provided in the earnings call) is not reflected here due to the transcript not being supplied in the data set; investors should reference the official call for exact phrasing and forward-looking guidance. Overall, the QQ1 2026 results position FedEx as a cash-generative industrials name with a resilient balance sheet, but with profitability and leverage dynamics that require ongoing attention as macro conditions and transport volumes evolve.