FedEx Corporation (FDX.DE) Q1 2026 Earnings Report

FedEx reported Q1 2026 revenue of USD 22.244 billion, up 0.6% year-over-year and 0.38% quarter-over-quarter, signaling modest top-line stability in a competitive macro environment. Gross profit reached USD 5.786 billion, up 12.9% YoY and 22.3% QoQ, with gross margin around 26.0%, reflecting favorable product mix and pricing in parts of the portfolio. However, operating income declined 40.3% YoY to USD 1.186 billion and net income fell 44.1% YoY to USD 0.824 billion, resulting in a net margin of about 3.7% and EPS of USD 3.46 (diluted). The disparity between growing gross profit and a compressed bottom line is driven by higher total other expenses (USD 4.6 billion) and a relatively elevated cost structure embedded in operating expenses and non-operating items. EBITDA stood at USD 2.226 billion (about 10.0% EBITDA margin), underscoring that earnings strength remains closer to the operating line, while non-operating costs and tax pass-throughs dampen net income. Management commentary in the quarter has historically emphasized network optimization, cost discipline, and selective pricing actions to protect margins amid a fluctuating macro backdrop. In the near term, the key questions for investors center on the trajectory of operating leverage as volume stabilizes, how quickly cost-reduction initiatives translate into margin expansion, and the degree to which external factors such as fuel costs and trade demand influence profitability. Absent explicit forward guidance in the provided data, the outlook hinges on disciplined cost control, throughput efficiency, and favorable economic conditions that support demand for both express and ground services.