The companies on the Global 500 employ 70.2 million people, and their revenue represents more than one-third of the world’s GDP.

Fortune Global 500

With a combined revenue of $21 trillion and $2.1 trillion in profits, the 2026 Fortune 500 is the definitive list of America's largest companies.

Fortune 500

The 300 companies on this year’s list brought in over $12.5 trillion in revenue for the latest 12 months, with the median revenue figure at $24 billion.

America's Most Innovative Companies

AI is a major force shaping this year’s list—but it’s far from the only story.

World's Most Admired Companies

This ranking evaluates how Fortune 500 companies are deploying AI, and how technology leaders value those investments relative to industry peers.

Fortune AIQ 50

The corporations on our annual list of the world's 500 largest companies combined to generate $41.7 trillion in revenue over the past year.

Almost $20 trillion in revenue—and a record-breaking $1.87 trillion in profits. Introducing the 2025 Fortune 500, the definitive list of the biggest companies in America.

The 300 companies on this year’s list brought in over $12.6 trillion in revenue for the latest 12 months, with the median revenue figure at $22 billion.

Leaders in all industries rely more than ever on Big Tech—and appreciate the giants that deliver, at scale, without drama.

The corporations on our annual list posted aggregate revenues of $41 trillion for the second year in a row.

Industries included in the sector are airlines, transportation equipment, logistics, mail and freight delivery, railroads, shipping, and trucking.

Fortune Sector Leaders: Transportation

The Fortune 500, in its 70th year in 2024, ranks the biggest U.S. companies by revenue.

The 200 companies on this list are transforming industries from the inside out.

The 26th edition of the list shows how much esteem Big Tech giants command among other business leaders.

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The 25th Fortune World’s Most Admired Companies list suggests that tech giants’ peers respect them as much as ever.

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The corporations on our annual list of the world’s largest companies delivered a record $41 trillion in aggregate revenues.

The 300 companies on this list are transforming industries from the inside out.

The Fortune 500, in its 69th year in 2023, ranks the biggest U.S. companies by revenue.

F500-2023-041-FedEx

The parcel delivery giant reported revenue of $93.5 billion (up 11.4%) and profits of $3.8 billion (down 26.9%). Rajesh Subramaniam succeeded founder Frederick Smith as CEO on June 1, 2022. 
<ul> 
 	<li>In February 2023, FedEx cut 10% of global officer and director jobs, a cost-cutting move prompted in part by diminishing revenue from e-commerce.</li> 
 	<li>Subramaniam announced in April 2023 that FedEx would combine its express and ground businesses. Smith had long defended keeping the units separate, even as analysts and investors urged their merger to simplify operations. Subramaniam says the move will help consumers understand pricing and shipping options more easily.</li> 
 	<li>FedEx is the fourth largest employer on the Fortune 500.</li> 
</ul>

Just as it dominates our economy, Big Tech now dominates Fortune’s annual ranking of corporate reputation.

WMAC-2022-16-FedEx

When it comes to supporting employees, flexibility, diversity, and a few extra paid days off go a long way.

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As one of the largest delivery services companies in the U.S., FedEx has employed thousands of workers on the front lines of the pandemic. To support them, the company debuted a new health care advocate program called Choose Well Care Connect, which provides those workers with a single point of contact whenever they have a health care need, helping them navigate a complex system of vendors. It’s also made 24/7 confidential counseling available to all employees, eligible dependents, and household members, even if they aren’t actively participating in the plan. The company facilitates career advancement through the FedEx Learning Center, which offers over 25,000 online courses; Aspire, which provides hourly employees access to experiential learning, coaching, and development opportunities; and direct tuition assistance for higher education. “I greatly appreciate the mentoring and guidance the managers at FedEx offer to everyone,” says one staffer. “I feel there is a sense of caring from management to their employees.”

Fortune 100 Best Companies to Work For

Aggregate sales hit $37.8 trillion last year—an increase of 19%, the highest annual growth rate in the list’s history.

Organizations on this annual list positively impact people and communities across multiple countries.

World's-Best-Workplaces-2022-FedEx

World’s 25 Best Workplaces

This year’s Fortune 500 marks the 68th running of the list.

F500 2022-FedEx

The delivery services giant climbed six spots to No. 39 on this year’s Fortune 500. Thanks to an increase in e-commerce during the pandemic; the company predicts its deliveries could exceed 100 million a day in calendar 2022. FedEx will experience an epochal change in leadership on June 1, 2022, when founder and CEO Frederick W. Smith will step down after more than 50 years at the helm. Raj Subramaniam will succeed Smith, who remained the largest shareholder in FedEx as of March 2022, with a stake of about 7.3%.

After a year in which humanity leaned more heavily than ever on tech giants, see which companies topped Fortune's ranking of corporate reputation.

WMAC 2021-16-FedEx

Total revenue for the world’s biggest companies fell 4.8% to $31.7 trillion this year—the first decline in half a decade.

G500 135 Fedex

Second only to United Parcel Service in the U.S. package-shipping business, FedEx said COVID-19 affected “virtually all revenue and expense line items” during the final quarter of its latest fiscal year, which ended May 31, 2020, dinging revenues 0.7% to $69.2 billion versus the year prior. Despite the disruption, profits surged an eye-popping 138% to $1.29 billion, nearly rivaling much bigger UPS’s $1.34 billion in profits. The jump is mostly due to earlier costly investments FedEx made to revamp its historically business-centric delivery network so it can better cater to residential customers.

This year’s Fortune 500 marks the 67th running of the list.

F500-2021-45-FedEx

Second only to United Parcel Service in the package-shipping business, FedEx inched up two spots to No. 45 on this year’s Fortune 500 list. The company said COVID-19 affected “virtually all revenue and expense line items” during the final quarter of its latest fiscal year, which ended May 31, 2020, dinging revenues 0.7% to $69.2 billion versus the year prior. Despite the disruption, profits surged an eye-popping 138% to $1.29 billion, nearly rivaling much bigger UPS’s $1.34 billion in profits. The jump is mostly due to earlier costly investments FedEx made to revamp its historically business-centric delivery network so it can better cater to residential customers.

For an astounding 13th straight year, Apple claims the top spot in Fortune’s annual ranking of corporate reputation, based on a survey of almost 3,800 executives, directors, and analysts.

This year's Fortune Global 500 generated $33.3 trillion in revenues and $2.1 trillion in profits.

G500-2020-148-FedEx

Second only to United Parcel Service in the package-shipping business, FedEx grew faster than its rival in 2019. The delivery dynamo brought in nearly $69.7 billion in its most recent fiscal year, up 6.5% from FY 2018. Still, FedEx investors despaired over a once marquee customer, Amazon, turning to a competitor. Readying itself for the fight of its life, FedEx spent big sums to revamp its delivery network, known primarily for catering to businesses, to go the “last mile” and drop off boxes on residential doorsteps. Costly investments, in part, caused profits to plummet more than 88%, to $540 million. On a December earnings call, FedEx’s chief financial officer described the hit as “horrific.” But instead of slashing costs, FedEx has swelled its ranks, adding nearly 30,000 more employees over the past year.

This year's Fortune 500 marks the 66th running of the list.

F500-2020-047-FedEx

Second only to United Parcel Service in the package-shipping business, FedEx grew faster than its rival in 2019. The delivery dynamo brought in nearly $69.7 billion in its most recent year fiscal year, up 6.5% from fiscal year 2018—thereby maintaining the No. 47 spot on this year’s list. But FedEx investors despaired over a former marquee customer, Amazon, flipping into a competitor. Readying itself for the fight of its life, FedEx spent big sums to revamp its delivery network, known primarily for catering to businesses, to go the “last mile” and drop off boxes on residential doorsteps. Costly investments, in part, caused profits to plummet 88.2% to $540 million. On a December earnings call, FedEx’s chief financial officer described the hit as “horrific.” But instead of slashing costs, FedEx has swelled its ranks, adding nearly 30,000 more employees over the past year.

Here are the World's Most Admired Companies for 2019 as ranked in their industries. See who made the list.

Our 2019 list of the 100 best companies as ranked by their employees. See which companies made the list.

This year's Fortune Global 500 generated $27.7 trillion in revenues and $1.5 trillion in profits.

This year's Fortune 500 marks the 65th running of the list.

Here are the World's Most Admired Companies for 2018 as ranked in their industries. See who made the list.

Our 2018 list of the 100 best companies as ranked by their employees. See which companies made the list.

This year's Fortune 500 marks the 64th running of the list.

We surveyed tens of thousands of young employees to create this list of millennials’ favorite workplaces.

best-workplaces-millennials-2018-FedEx

Employees say: 
 
&nbsp; 
 
"It is quite unique how well FedEx takes cares of its employees. I have never worked somewhere where I have been paid so well and been given so many benefits, even as a part-time employee. I feel taken care of and that the company respects what I do." 
 
&nbsp; 
 
"Since I started working for FedEx Freight as a part-time dock worker over four years ago. I have received nothing but great advice, as well as great opportunities to move up. I climbed my way to management with the support of my uppers. The co-workers I have met along the way have been the friendliest with my best interests in mind. I have never worked for a company that I've been so proud of." 
 
&nbsp;

100 Best Large Workplaces for Millennials

Here are the World's Most Admired Companies for 2017 as ranked in their industries. See who made the list.

Our 2017 list of the 100 best companies as ranked by their employees. See which companies made the list.

This year's Fortune 500 marks the 63rd running of the list.

Here are the World's Most Admired Companies for 2016 as ranked in their industries. See who made the list.

This year's Fortune Global 500 generated $27.6 trillion in revenues and $1.5 trillion in profits.

This year's Fortune 500 marks the 62nd running of the list.

Business insiders have spoken: Asked which companies they most admire, more than 4,100 executives, directors, and analysts chose these top 50 All-Stars.

The world's 500 largest companies generated $31.2 trillion in revenues and $1.7 trillion in profits in 2014. Together, this year's Fortune Global 500 employ 65 million people worldwide and are represented by 36 countries.

This year's Fortune 500 marks the 61st running of the list. Wal-Mart claims the top spot again. See who made the list.

Global business is back. After limping through a worldwide financial crisis and economic slowdown, the 500 largest companies ranked by revenues shattered all sorts of performance records in 2013: They racked up combined revenues of $31.1 trillion, up 2.5% from 2012, and profits soared 27% to nearly $2 trillion. China’s 95 companies (up from 89 last year) posted $5.8 trillion in revenues. The U.S. has four fewer companies on the list than last year but remains (for now) the country leader, with 128 corporations on the list—including No. 1 Wal-Mart Stores—reporting $8.6 trillion in revenues. 

Wal-Mart stayed on top as its sales crept closer to half-a-trillion dollars. Apple moved into the top five. And UnitedHealth Group continued its steady climb. 

Best Companies

Years on list

U.S. employees

U.S. job openings

Year founded

Perks

100% health coverage

Unlimited sick days

Telecommuting

Job sharing

Subsidized childcare

Compressed work weeks

Fully-paid sabbaticals

On-site fitness/subsidized gym

On-site medical care facility

Non-discrimination policy includes sexual orientation

Sick days for part-timers

College tuition reimbursement

Student loan debt repayment

Paid Time Off: Full-time Employees

# Sick days

Hiring/staffing (past 12 Months)

# of job applicants

Company Info

Industry

Founded

City

Sites

Web Address

Millennials In The Organization

# of millennial employees

Millennials as % of total workforce

Sector

Current All-Star Rank

Previous All-Star Rank

Industry Rank

Previous Industry Rank

Overall Score

Innovation

People Management

Use of Corporate Assets

Social Responsibility

Quality of Management

Financial Soundness

Long-Term Investment Value

Quality of Products/Services

Global Competitiveness

Strongest Dimension

Previous rank

State

Key Financials (last Fiscal Year)

Revenues ($M)

Profits ($M)

Assets ($M)

Total Stockholder Equity ($M)

Profit Ratios

Profit as % of Revenues

Profits as % of Assets

Profits as % of Stockholder Equity

Earnings Per Share (last Fiscal Year)

Earnings Per Share ($)

EPS % Change (from prior fiscal year)

EPS % Change (5 year annual rate)

EPS % Change (10 year annual rate)

Total Return

Total Return to Investors (last year)

Total Return to Investors (5 year, annualized)

Total Return to Investors (10 year, annualized)

FedEx, founded in 1971, is a multinational delivery services company known for its overnight shipping and pioneering tracking systems. Headquartered in Memphis, FedEx operates in more than 220 countries and territories, providing an array of services including express transportation, freight, e-commerce, and business solutions.

Q4 2026

Q3 2026

Q2 2026

Q1 2026

Q4 2025

Q3 2025

Q2 2025

FedEx (FDX): Company Profile, Stock Price, News, Rankings

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FedEx

fedex

Please note this event is being recorded. I would now like to turn the conference over to Ms.

Jenny Hollander, Vice President of Investor Relations. Please go ahead.

Good afternoon, and welcome to FedEx Corporation's 2nd quarter earnings conference call. The 2nd quarter earnings release, freight assessment results release, Form 10 Q and stat book are on our website at investors. Fedex.com. This call and the accompanying slides are being streamed from our website. During our Q and A session, callers will be limited to one question to allow us to accommodate all those who would like to participate.

Certain statements in this conference call may be considered forward looking statements as defined in the Private Securities Litigation Reform Act of 1995. Such forward looking statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied by such forward looking statements. For additional information on these factors, please refer to our press releases and filings with the SEC. Today's presentation also includes certain non GAAP financial measures. Please refer to the Investor Relations portion of our website at fedex.com for a reconciliation of the non GAAP financial measures discussed on this call to the most directly comparable GAAP measures.

Joining us on the call today are Raj Subramaniam, President and CEO Brie Khareri, Executive Vice President and Chief Customer Officer and John Dietrich, Executive Vice President and CFO. Now I will turn the call over to Raj.

Thanks, Jenny. We are in the home stretch of peak, and I want to begin by thanking our team members for their hard work and dedication as we deliver an outstanding holiday season for our customers. Today marks an important step in our transformation. Following our assessment of FedEx Freight, which we announced and commenced back in June, we have decided to pursue a full separation of this business, which will result in 2 industry leading public companies. Through the separation, we believe we will unlock significant value for stockholders while allowing for continued commercial, operational and technological cooperation between both businesses.

The separation will also enable both companies to benefit from enhanced focus and competitiveness. For FedEx, this will ensure strong execution of our near and longer term strategic priorities while preserving the benefits freight and FedEx enjoy from their long standing connectivity. Each independent company will be well capitalized with flexibility to invest in profitable growth while continuing to return capital to shareholders. I would like to provide a brief overview on the compelling value proposition of both businesses starting with FedEx Freight. We're excited to create a leading LTL pure play, the largest carrier by revenue with the broadest network and the fastest transit times.

FedEx Freight has deep relationships with customers who turn to us for our liability, simplicity and choice of services. Freight has maintained its leading market share position for a long time and increased operating profit nearly 25% on average per year over the last 5 years, expanding operating margin by approximately 1100 basis points. The team's focus on safety, facility utilization, revenue quality and operational efficiency has driven this performance and these factors will continue to guide Freight's go forward strategy supported by a strong balance sheet. As a separate company, Freight will be better positioned to unlock its full value potential. Areas where we see the greatest opportunity include: 1st, an expanded dedicated LTL sales force led by Tom Connolly, our new VP of LTL Sales, with nearly 30 years of experience.

We've already begun to build out this team and we expect to add more than 300 LTL specialists by the time of separation. 2nd, an enhanced LTL specific pricing and invoicing system that drives faster speed to market, more intuitive contracts and is more tailored to this particular market. 3rd, improved freight and FedEx network efficiencies focused on accelerating speed, improving coverage, optimizing touches and lowering our cost to serve. And 4, an LTL focused automation, which will drive efficiency and reduce outside vendor spend. FedEx Freight's portfolio of solutions, which includes both priority and economy services, is also well positioned to benefit from the long term market dynamics shaping the LTL industry.

As we pursue this separation, we will remain focused on customer experience by sustaining or improving service to our customers. To ensure the focus and seamless transition, Lance Small will continue to serve as President of FedEx Freight as we execute on our separation. The long standing cooperation between FedEx and FedEx Freight will continue through commercial, operational and data and technology agreements to enable seamless continuity of service and capture existing benefits from the relationship. We have an unmatched customer value proposition. With 2 separate companies, we will ensure commercial collaboration that creates a seamless transition for our customers, especially those that turn to FedEx for all three services.

From an operational perspective, in addition to the network efficiencies I mentioned earlier, freight will continue to provide line haul for FedEx strategically including tricolor, peak season and dry aged support. This requires minimal change as freight already receives a direct financial benefit from supporting Federal Express via intercompany agreements. Additionally, we will implement shared technology and service agreements to facilitate the transition and beyond. Through these agreements, FedEx will provide freight with tech platforms that effectively connect the 2 businesses as needed and ensure business community. Given the strong reputation and familiarity of our brand, we plan for the new company to continue to operate under the FedEx Freight name.

Putting all of this together, customers will continue to enjoy the superior service, speed and coverage they have come to expect from FedEx Freight, while also maintaining access to the unparalleled global ecosystem of FedEx services. Now turning to FedEx. We pioneered the express transportation industry over 50 years ago and remain the industry leader today. Customers choose us for our advantaged value proposition enabled by our service, speed and breadth of coverage. We deliver nearly 17,000,000 packages each business day to over 220 countries and territories.

We link more than 99% of the world's GDP. We transport approximately $2,000,000,000,000 worth of goods every year by connecting 3,000,000 shippers to 225,000,000 consumers. In the U. S, our weekend and rural coverage also serve as competitive advantage. And we generate over 1 petabyte of data every single day, which provide insights that drive how we run our company more efficiently, how we serve our customers and how our customers manage their own supply chains.

The ongoing progress at FedEx gives me confidence that this standalone business will continue to thrive into the future. During and post separation, we will continue to focus on delivering significant value to stockholders through our strategic initiatives which are cementing our leadership position as the world's best transportation and supply chain technology company. This includes DRiV, which continues to change the way we work. We are on track to deliver $4,000,000,000 in savings by the end of FY 2025 versus the FY2023 baseline. Network 2.0, which will deliver on the promise of a more efficient network, including 1 truck, 1 neighborhood, along with consolidated facilities, where we are targeting $2,000,000,000 in savings by the end of FY2027.

Tricolor, the redesign of our global air network, which positions us for strategic growth while improving the efficiency and asset utilization of the entire FedEx system. As a separate company, FedEx will strengthen its leading value proposition with an emphasis on delivering outstanding service, continuing to provide a differentiated offering in premium segments and remaining focused on higher yielding service and building on our technology ecosystem to create smarter supply chains for all. Our capital allocation priorities remain unchanged. We will prioritize maintaining a strong balance sheet and investment grade profile. We will continue to make high return investments in the business, while reducing capital intensity and increasing stockholder returns through buybacks and dividends.

Looking ahead, we expect to execute the separation within approximately 18 months. Claude Russ will lead our separation management office, bringing the dry rigor and accountability that we use to run our operations. Claude has spent nearly 25 years at FedEx. As the former CFO of FedEx Freight, is well versed in our freight business and the LTL market dynamics. Claude is currently Enterprise VP of Finance and has been a critical enabler of our DRiV execution.

Today, we have shared the outcome of the assessment and our initial plans. As we have new details and separation milestones to share, we will keep you updated. Upon completion, this full separation will result in 2 strong well capitalized industry leaders FedEx Freight, which will benefit from continued strategic and operational competitiveness and more flexible capital allocation And FedEx well positioned to continue executing on our strategic initiatives in pursuit of sustainable profitable growth. We are confident the separation is the right strategic decision for FedEx and FedEx Freight at this point in our evolution with a clear path ahead to create significant long term stockholder value. Importantly, for our employees and our customers, it's business as usual as we look forward to a seamless transition.

We are used to navigating change and we will do it while continuing to deliver on the Purple promise every single day. Now turning to our Q2 results. Looking across the enterprise, we delivered sequential improvement both in drive savings and adjusted operating profit. At Federal Express Corporation, we achieved strong results on a year over year basis and greater flow through to the bottom line with adjusted operating profit up 13% on essentially flat revenue. We did this despite the challenging demand environment as well as headwinds we have previously identified, including the U.

S. Postal Service contract expiration and the timing shift of Cyber Week. This is evidence that our transformation is clearly working. Similar to last quarter, we experienced weakness in the industrial economy, which negatively affected our B2B volumes, particularly in the U. S.

Domestic package and the LTL markets. Continued market pressure coupled with difficult year over year comparisons weighed on our Freight segment in the Q2. With B2B revenues comprising nearly 60% of our package business and 90% of our LTL business, we are well positioned for profitable growth when the industrial economy recovers. Against this backdrop and in support of evolving market dynamics, we continue to create a more flexible, efficient and intelligent FedEx as we deliver for our customers. We achieved drive savings of $540,000,000 in Q2.

We remain confident that we will deliver our targeted $2,200,000,000 in incremental savings in FY 2025. Our Network 2.0 rollout continued and the Canadian market integration will be largely complete in early calendar year 2025. With the expiration of the U. S. Postal Service contract, we are strategically matching capacity with demand and flexing the network as needed to transport packages more efficiently.

At the end of September, we reduced our U. S. Domestic daytime flight hours by nearly 60% and swiftly began to reduce other associated costs. And we delivered solid service for our customers. This is always our priority and especially important during peak.

I'm very pleased with how our teams are navigating a condensed period between Thanksgiving and Christmas. So far during peak, they are delivering more packages per day on average, while maintaining the high quality shipping experience that our customers expect with the ground average time in transit at 2 days in the U. S. This peak. As we look to the second half of the fiscal year, we remain focused on what is within our control, executing against our transformation initiatives to reduce our cost to serve and drive improved performance.

However, amid continued uncertainty around the demand environment, we are updating our expectations for FY 2025. We now expect an adjusted EPS outlook range of $19 to $20 John will provide more color on the underlying assumptions shortly. Turning to Drive. On past earnings calls, I've talked about Drive as our structural cost optimization program. The reality is that within FedEx, Drive has evolved to be so much more.

It's a new data and technology driven business architecture that has changed how we work across our entire enterprise, introducing more rigor and accountability to every decision we make, leading to a continuous cycle of efficiency and optimization. Take Europe, where we expect to achieve $600,000,000 in total DRiV savings by the end of the fiscal year. Our European business is predominantly a ground based business. We introduced new European leadership over the summer, including a senior operator from our U. S.

Surface team. In the spirit of One FedEx, we are bringing hub and sort best practices from U. S. To Europe and we have achieved many recent wins. Our progress includes revenue growth, which combined with the DRiV benefits lead to improved performance this quarter.

This gives us confidence in Europe's near and longer term trajectory. Our ability to enhance the financial performance of our European business starts with technology. Having implemented a common data platform, we now have a better view of our European network, assets and costs to serve. We're using these insights to increase efficiency in the region. For example, with our improved routing in Europe via the enhanced data flow, we reduced the number of touches on intra European packages.

This is not only improving productivity, but also expediting clearance, leading to better service. We also introduced dimensional pricing at our Charles de Gaulle hub in Paris. This enhancement enabled by new and updated technology seamlessly captures package dimensions and weight and then applies and integrates applicable surcharges via standardized processes. As a result, we are now better and more accurately compensated for the goods we transport, especially for the higher margin packages with unique dimensions. We'll continue to roll out this capability to other European facilities over the next year.

Together with non stackable shipment surcharges, we expect this initiative to deliver an operating income benefit of over $50,000,000 in FY 2025. This is a prime example of our new business architecture translating into improved financial and operational outcomes. Looking ahead across Europe, the team remains focused on deploying the right value proposition and network design, the digital tools that enhance the customer experience and the right processes to deliver this experience efficiently and effectively. Improving our financial performance in Europe is a top priority for our entire leadership team. I'm very encouraged by our recent progress and confident in the opportunity ahead.

In October, just in time for peak, we celebrated the grand opening of a new state of the art sorting facility at our Memphis World Hub. This new sorting facility marks an important milestone in our modernization efforts, improving the work experience for our employees and service for our customers, while increasing the efficiency of our hub. We also continue to roll out Network 2.0 in select markets in the first half of Q2 and we have now optimized 200 stations to date. And we are continuing to execute on tricolor, our international air network design strategy, which is improving density and asset utilization across the enterprise while targeting profitable growth. Before I close, I want to thank the FedEx team once again as we approach the end of our peak season.

They make every FedEx experience outstanding, positioning us well through peak and beyond. Now let me turn the call over to Brie.

Thank you, Raj. Market conditions remain soft, but our solid service levels, unique value proposition and innovative offerings supported our Q2 performance and have positioned us well for a successful peak season. Consolidated revenue declined 1% in the quarter, driven by the weak industrial economy. U. S.

Manufacturing PMI has indicated a contraction for 24 out of the past 25 months, representing the 2nd longest downturn in U. S. History. Reviewing each segment on a year over year basis now. At Federal Express, revenue was essentially flat.

Higher yields across our services were partially offset by volumes, which declined year over year. We again saw increased demand for our lower yielding services. Some of this demand increase was driven by a shift in customer preferences, particularly with the shift from home delivery to ground economy. But the majority was due to organic demand and not related to trade down between services. At FedEx Freight, lower volumes, fuel surcharges and weight per shipment drove the top line decline.

Year over year comparisons were challenging as some customers won last year from the yellow bankruptcy have since left in search of lower prices. That being said, we are ready to capture additional profitable volume when the market returns. Turning now to volume trends by service during the quarter. Volumes were pressured, led by weakness in the U. S.

Domestic market, partially offset by strong international growth. Across U. S. Domestic express services, volumes declined 1%, primarily due to weakness in the industrial economy. Ground volumes were down 1% as well, with the soft B2B environment weighing on ground commercial growth.

While we recognize that e commerce will continue to outpace B2B growth in the years ahead, we know that the priority customer base is stable with low rates of churn and the current priority volume weakness reflects the state of the broader global macroeconomic environment. Ground residential volumes were adversely affected by a difficult comparison due to Cyber Week, which occurred in Q2 last year and is in Q3 this year. International export package volumes increased 9% in the quarter, driven by international economy, which is largely consistent with recent quarterly trends. Within FEC, average daily pounds were up 10% for international priority freight and 5% for international economy freight. This signals early progress from our tricolor strategy to drive profitable growth in the global airfreight market.

At FedEx Freight, the soft industrial economy led to weakness in both weight per shipment down 3% and average daily shipments down 8%. The pricing environment is competitive, but I am encouraged that revenue quality actions are gaining traction. Revenue quality remains our highest priority as we ensure that revenue growth is benefiting the bottom line. At Federal Express, composite package yield increased 1%, driven by international priority, U. S.

Priority, home delivery and ground commercial. Overall yield for ground services was flat with yield growth at home delivery and ground commercial offset by ground economy. As expected, international economy parcel yield declined due to mix and lower weight per shipment. Moving to Federal Express Freight. Composite freight yield was up 4% driven by lower postal service volumes tied to the contract expiration and also successful commercial execution in the international export freight market.

At FedEx Freight, revenue per shipment was down 4%, driven by decreased fuel surcharge revenue due to lower fuel prices and lower weight per shipment. We are through a significant part of peak and project the demand surcharge revenue over this season will be up year over year. I am confident that this pricing strategy is supporting the revenue and profit expectations for the Q3. Looking at the second half of fiscal year twenty twenty five, we anticipate consolidated revenue to be up slightly on a year over year basis in both Q3 and Q4. While we still have 5 days to go, I'm very pleased with December volumes, which are ahead of our forecast.

We expect our general rate increase of 5.9%, which goes live in January to have a very strong capture. Federal Express revenue growth in the back half will be supported by ground residential and international economy volume growth, driven in Asia and also through European market share acquisition. We continue to see strong commercial traction, particularly in Europe. At FedEx Freight, we anticipate revenue to decline slightly in the second half due to continued softness in average daily shipments and modest yield improvement. As Raj mentioned, in January, we began hiring 300 incremental LTL specialists.

We believe this increased focus will provide better support for our customers and enable us to accelerate profitable growth. As we wrap up the calendar year, it's a great time to remind you of our commercial strategy. I am proud to lead the best team in the industry and I am confident that the commercial strategy we have in place will drive significant value in the years ahead. Our strategy is in service of our vision to make supply chain smarter for everyone. For our customers, our mission is to be their unrivaled partner in moving their business forward.

To deliver on this mission, we will provide a superior digital portfolio and customer experience. It's essentially the Purple Promise 2.0 powered by the FDX platform. In fiscal year 2026, we will begin the transition of our fedex.com customer base to the FDX platform. This will improve our speed to market and allow us to expose new capabilities like advanced visibility for the millions of FedEx small and medium customers. We are designing new experiences for high value segments and planning for above market growth where we already have a differentiated portfolio.

FedEx (FDX) Q2 2025 Earnings Call Transcript

Company Participants