Executive Summary
FedEx delivered a modest year-over-year revenue progression in QQ3 2025 with continued profitability and a solid free cash flow profile, underscored by disciplined capital allocation. Revenue of $22.16 billion grew about 1.9% YoY while net income reached $0.909 billion and EPS stood at $3.79, supported by an EBITDA of roughly $2.537 billion and an operating income of $1.292 billion. Despite near-term top-line growth, gross margins were a focal point of strength versus QoQ weakness, indicating seasonality and mix shifts within segments. Cash flow performance remained robust, with operating cash flow of $2.012 billion and free cash flow of $1.015 billion, enabling continued deleveraging flexibility through share repurchases and dividends, even as gross debt remained elevated. The balance sheet shows healthy liquidity, yet the company carries substantial long-term debt that influences leverage metrics and capital allocation considerations for investors.
Key Performance Indicators
Key Insights
Revenue: $22.16B (YoY +1.94%, QoQ +0.88%). Gross Profit: $4.731B (YoY +4.23%, QoQ -16.15%). Operating Income: $1.292B (YoY +3.94%, QoQ +22.81%). Net Income: $0.909B (YoY +3.41%, QoQ +22.67%). EPS: $3.79 (Diluted $3.73; YoY +6.76%, QoQ +23.45%). Gross Margin: 21.35%; Operating Margin: 5.83%; Net Margin: 4.10%. EBITDA: $2.537B; EBITDARatio: 11.45%. Operating Cash Flow: $2.012B; Free Cash Flow: $1.015B. Cash balance: $5.135B; Total debt: $37.031B; Net Debt: $31.896B. Current ratio: 1.239; Quick rat...
Financial Highlights
Revenue: $22.16B (YoY +1.94%, QoQ +0.88%). Gross Profit: $4.731B (YoY +4.23%, QoQ -16.15%). Operating Income: $1.292B (YoY +3.94%, QoQ +22.81%). Net Income: $0.909B (YoY +3.41%, QoQ +22.67%). EPS: $3.79 (Diluted $3.73; YoY +6.76%, QoQ +23.45%). Gross Margin: 21.35%; Operating Margin: 5.83%; Net Margin: 4.10%. EBITDA: $2.537B; EBITDARatio: 11.45%. Operating Cash Flow: $2.012B; Free Cash Flow: $1.015B. Cash balance: $5.135B; Total debt: $37.031B; Net Debt: $31.896B. Current ratio: 1.239; Quick ratio: 1.194. P/E: 17.35; P/B: 2.36; EV/EBITDA: 39.47; Dividend Yield: 0.526%. Payout Ratio: 36.5%.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
22.16B |
1.94% |
0.88% |
| Gross Profit |
4.73B |
4.23% |
-16.15% |
| Operating Income |
1.29B |
3.94% |
22.81% |
| Net Income |
909.00M |
3.41% |
22.67% |
| EPS |
3.79 |
6.76% |
23.45% |
Key Financial Ratios
operatingProfitMargin
5.83%
operatingCashFlowPerShare
$8.38
freeCashFlowPerShare
$4.23
dividendPayoutRatio
36.5%
Management Commentary
No earnings call transcript or quotes were provided in the supplied data. As a result, there are no management quotes to group by themes (strategy, operations, market conditions) within this file. If a transcript becomes available, we will extract quotes and flag themes such as cost discipline, pricing/yield management, volume recovery, and strategic network optimization.
Forward Guidance
The dataset does not include explicit forward guidance from FedEx management for QQ4 2025 or beyond. Given the current quarter’s modest revenue growth and solid free cash flow generation, the prudent expectation is for continued focus on cost discipline, yield management, and network optimization to support margin resilience amid macro volatility. Investors should monitor: (1) volume trends in express and ground segments as e-commerce activity normalizes post-peak periods, (2) fuel and labor cost dynamics, (3) utilization and efficiency gains from ongoing network optimization, and (4) capital allocation outcomes (share repurchases, dividends, and selective capex) that influence leverage and cash generation.