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.

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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.

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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.

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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.

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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.

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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

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

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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

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# of job applicants

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Industry

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# of millennial employees

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Total Return to Investors (last year)

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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

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Q1 2026

Q4 2025

Q3 2025

Q2 2025

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

legacy

FedEx

fedex

Good day, and welcome to the FedEx Fourth Quarter Fiscal twenty twenty five Earnings Call. All participants are in listen only mode. After today's presentation, there will be an opportunity to ask questions. Please note this event is being recorded. I would now like to turn the conference over to FedEx President and CEO, Raj Subramaniam. Please go ahead.

Thank you, operator. Before we begin, I wanna take a few minutes to honor someone who meant a great deal to this company, the business community, his beloved family, and to me personally. It feels strange to be here with you all so soon after his sudden passing, It is difficult to put into words the tremendous loss felt by all who knew Frederick w Smith. But Fred was a man grounded by a mission, and he would tell us to stay focused on the business and keep marching forward. And so we will do just that.

But first, I wanted to share a few thoughts. Fred was more than a business leader. He was a visionary who revolutionized the delivery industry. He was a man who led with integrity and inspired others. His belief in people, his relentless pursuit of excellence, and his commitment to connect people and possibilities built one of the world's most successful companies over the last five decades, and his legacy will be felt for decades to come.

On a personal note, I will miss his strategic counsel, impeccable character, and sharp wit. He taught me that leadership is about service and not titles. He challenged me to think bigger, act bolder, and always, always put our people and our customers at the center of everything we do. I feel tremendously fortunate to have spent thirty five thirty four years learning from one of the most brilliant minds in our country's history. Please join me in extending heartfelt condolences to the entire Smith family during this difficult time.

As we move forward, we'll honor his legacy by continuing to build the company he loved with the same passion and purpose he inspired us inspired in us all. Now consistent with our succession plan, yesterday, the board elected Brad Martin as the chairman of the board of FedEx4. Brad is a highly regarded business leader and strategic thinker who is intimately familiar with the business, having previously served as our vice chairman. With that, I'm gonna turn the call over to Jenny.

Thanks, Raj. Good afternoon, and welcome to FedEx Corporation's fourth quarter earnings conference call. The fourth quarter earnings release 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 Bree Carreri, Executive Vice President and Chief Customer Officer and John Dietrich, Executive Vice President and CFO. And now I will turn the call back over to Raj.

Thank you, Jenny. I want to start by commending our team for their strong efforts and execution. We delivered a solid finish to FY 2025 with another quarter of adjusted operating income growth and adjusted operate operating margin expansion despite a challenging demand environment. This performance reflects the progress we have made on our strategic transformation, which continues to position FedEx for long term value creation. In FY '25, we delivered on our $2,200,000,000 DRIVE structural cost reduction commitment. This enabled us to achieve our two year $4,000,000,000 DRIVE target compared to the FY 2023 baseline. We advanced Network two point zero in FY 2025 as we began optimizing larger, more densely populated markets. We continued to lower our capital intensity, and we returned $4,300,000,000 in cash to stockholders.

We achieved all of this in the face of major headwinds, including the expiration of our US Postal Service contract, two fewer operating days, and volatility and uncertainty related to global trade policy. Against this dynamic backdrop, I'm very proud of our ability to deliver on our targets, adapt our network to changing trade flows, and provide excellent service for our customers. Now turning to our consolidated q four results. Revenue was up 1% year over year. We grew our drive savings sequentially and achieved our drive cost reductions target in this quarter.

This enabled us to grow adjusted operating income by 8% and expand adjusted operating margin by 60 basis points. At Federal Express Corporation, our results demonstrate the operational leverage that we have built into our business through Drive. On a 1% increase in revenue, we grew adjusted operating income by 9%. We achieved this result in a weak demand environment with growth largely drawn by our deferred services. Our performance demonstrates the flexibility of our network, and I'm confident in the operating results we can deliver when the industrial economy recovers.

Consistent with the trends over the last several quarters, our higher margin B2B volumes remain pressured, which affected both FEC and freight results. That said, we are encouraged by the sequential improvement of FedEx Freight and our ability to protect profitability with an operating margin of 20.8% in q four. The trade related events of the fourth quarter showcase our ability to leverage both the scale and the flexibility of our unrivaled global network, supported by insights from the vast amounts of data we collect. We are at the center of a global trade ecosystem. We connect 99% of the world's e world's commerce.

We move $2,000,000,000,000 worth of goods every year. We connect 3,000,000 shippers to more than 225,000,000 consumers. And as the world changes and supply chains evolve, we benefit from our presence in over 220 countries and territories. This uniquely positions us to be a valuable partner to our customers as they navigate shifting demand trends, evaluate the impact of tariffs on their businesses, and adjust their supply chains accordingly. And importantly, our Tricolor strategy enables us to adapt our own network faster than ever before as circumstances and the needs of our customers change, driving greater efficiency and a better customer experience.

For example, in the fourth quarter, we flexed our network to match the demand environment as trade flows shifted. We reduced capacity on our Asia to America's lane by more than 35% the May compared to April. This included reduce reducing our third party or white tail capacity by 50%. We then continue to adjust the capacity as needed. As demand trends evolve throughout the month, we exited May with a net capacity reduction of about 20% versus April.

We have been introducing other network changes in Asia, allowing us to consolidate from multiple points into a centralized gateway. We recently added a direct flight from Singapore to The US, enabling us to be to more efficiently capture increased demand out of Southeast Asia. We continue to evaluate trade patterns and are prepared to alter our routes and capacity commitments should demand shift with a focus on Asia to Europe and Asia to Latin America. In addition to rapidly adjusting our physical network, our team has done a remarkable job working closely with our customers and help helping them navigate increasing operational complexities. We continue to apply our digital platform based solutions to effectively address key pain points amid changing global trade policies.

These solutions support a wide range of stakeholders, importers, exporters, brokers, and regulators, and they are tightly integrated with our customers' existing workflows, ensuring that critical trade and tariff related work can occur seamlessly and efficiently. As you are all aware, there's a lot happening outside of FedEx. Trade policies are evolving and trade patterns are changing. What's truly remarkable is a significant way we have leveraged our technological capabilities and processes to navigate these complexities and operate more efficiently for our customers. Network two point zero is the next leg of our structural transformation, and it well underway.

In April, we completed the full optimization of Canada, our largest market yet. As planned, we optimized 45 US stations in q four, and we are now picking up the pace. On June 1, we implemented Network two point zero on nearly 30 stations across 11 markets, and we will optimize another 33 stations across nine markets by the end of this month. That means we exit June with roughly 2,500,000 average daily volume flowing through network2.0 optimized stations. Looking beyond North America, we have made progress in Europe, including our drive target.

That said, Europe remains a significant opportunity for long term financial improvement. We have been implementing the workforce reduction plan we announced in June of twenty twenty four. This was a very difficult but necessary decision for us, leading to about $150,000,000 of savings on an annualized basis in f y twenty seven. We have achieved better on road productivity with sustained improvement in net service levels. We have now seen two consecutive years of cost per package reduction in our European business. In FY twenty six, we'll focus on further improving on road and in station productivity, bringing new digital experience to our customers and growing market share profitably in the region.

A quick update on the freight spin off. Last month, we named Brad Martin as chairman of the board of FedEx Freight. We also named John Smith as president and CEO of the stand alone company. As many of you know, John has deep freight expertise and a strong track record of improving margins and profitability at both FedEx Freight and FedEx Ground. We're moving quickly to announce the rest of our freight leadership team.

We recently hired Michael Rogers as chief technology officer for FedEx Freight. Mike brings vast external technology experience, having most recently spent time in the fuel supply and the retail sectors. Additionally, Eddie Clank will serve as a FedEx Freight's chief human resources and legal officer. Eddie brings deep expertise from his nearly thirty year career at FedEx, most recently as corporate vice president for corporate governance, securities, and tax law. Mike Lyons has worked at FedEx Freight since 02/2007, will serve as a chief specialized services and commercial officer.

And Clint McCoy, who has worked at FedEx Freight for nearly thirty years, will be the chief operating officer. I'm confident that this mix of strong external FedEx cooperation and FedEx Freight talent will set up FedEx Freight FedEx Freight for success. Before I wrap up, I want to provide early perspective on how we are thinking about the current quarter and the year ahead. The global demand environment remains volatile. We're we're staying close to our customers to help them plan and adapt as they navigate trade policy changes, and we are actively match matching our capacity with demand as the environment evolves.

John will walk through our expectations for the first quarter of this fiscal year. We remain focused on what we can control. For f y twenty six, we expect to achieve $1,000,000,000 of transformation related savings, which includes drive and network two point o. I again want to thank the team for the innovative and mission critical work they're doing to make supply chains smarter for everyone. This work has resulted in a solid finish to the fiscal year.

And importantly, it's translating to better outcomes for our customers in a very complex operating environment. Now let me turn the call over to Bree.

Thank you, Raj. I am proud of how we are helping our customers navigate this challenging period, and I think it's fitting to share that so too is our founder. Just this past Friday, Fred told me how fun it was to watch the team work, and then he saw and felt the momentum building in the business. He was excited about our ecommerce value proposition, the power of our clearance capabilities, and, of course, the growth in global airfreight and health care. I want to commend the entire organization for our focus on creating vast differentiation and showing up for our customers.

Delivering the Purple Promise has served us well for the last fifty years, the last quarter, and undoubtedly, it will serve us well in fiscal year Taking a closer look at our Q4 revenue performance. Consolidated revenue was up 1% with a 1% increase at Federal Express and a continued weakness as expected at FedEx Freight. For both segments, a better than expected May more than offset a softer than expected April. Looking at our volume trends by service, U. S.

Domestic volumes held up well throughout the quarter with growth accelerating in late April and May. Our nationwide coverage and our speed advantage are helping us win new profitable business. We saw 6% volume growth across our U. S. Domestic parcel services.

From an international perspective, our volume trends closely tracked global trade headlines. March performance was solid and in line with our expectations. Following the April 2 tariff announcement, customer concerns increased and as a result volume softened. In early May, upon tariff implementation, China to U. S.

Volumes deteriorated sharply and remained weak throughout the rest of the quarter. Our international export revenue was flat, reflecting the tariff related impact on our Transpacific trade lane. I do want to take a moment to commend our clearance team at the Memphis Hub for their success in navigating this environment and maintaining excellent service. This was an impressive feat given customs entries in May were double the January through April average. Within our Freight segment, shipments remained pressured, but the year over year declines moderated sequentially with average daily shipments down 1% year over year in Q4 compared to down 5% in Q3 and down 8% in Q2.

In fact, average daily shipments up 8.3% sequentially was our greatest Q4 over Q3 increase since fiscal year twenty twenty one. As we prepare for the freight spin off, we are continuing to execute on our commercial strategy with an emphasis on improved service and pricing discipline, and we continue to build out our dedicated sales force. The pricing environment continues to improve. At Federal Express, total U. S.

Domestic package yield was up slightly with strength in our priority services offset by mix shift and softer yields in deferred and ground economy. Maintaining pricing discipline remains a top priority. International export package yield declined 1%, driven by lower international economy yield, partially offset by an 11% yield increase for international priority. Within global air freight, we are pleased to see higher revenue per pound. This is a direct result of our Tricolor strategy, which is designed to increase network flexibility, reduce costs, and importantly support profitable growth in the international export freight market.

Thanks to Tricolor, we delivered 5% growth in international airfreight revenue in Q4 with a high profit flow through. At FedEx Freight, I remain encouraged by the continued increase in revenue per hundredweight, up 1%, signaling a continued commitment to revenue quality. Total revenue per shipment declined 1% due to lower fuel surcharge and lower weight per shipment. Looking ahead, as global trade policies continue to evolve and companies adjust their shipping patterns, we are well positioned to support our customers and adapt as needed. Our current expectation is for flat to two percent revenue growth in the first quarter.

This range includes approximately $570,000,000 of idiosyncratic revenue headwinds from the expiration of the U. S. Postal Service contract and recent trade disruption. Where we land in the range largely depends on how The U. S.

Domestic revenue at FEC evolves. The top end of the range assumes current favorable U. S. Domestic trends at FEC continue through Q1. The lower end of our range assumes incremental pressure to U.

S. Domestic demand. Internationally, we expect revenue from the China to U. S. Lane to remain pressured, consistent with what we saw exiting Q4.

At Freight, we forecast revenue to decline slightly year over year in the first quarter. Now a quick update on our commercial strategy. Our focus is paying off, translating to better customer experiences and financial outcomes. Our emphasis on B2B, small and medium sized businesses, Europe and air freight is a deliberate approach to capitalize on high margin market opportunities while diversifying our revenue streams globally. Within B2B, healthcare and automotive remain important verticals for us.

We exited FY twenty twenty five with $9,000,000,000 in healthcare related revenue, which drove growth in our U. S. Priority volumes. In Q4, we became the first global integrator to achieve an important pharma related certification known as SEAVE. This is for grand ground handling across our express hubs and ramps.

This marks a significant milestone in our commitment to quality, compliance, and leadership in pharmaceutical logistics. It validates the strength of FedEx's quality management system and our ability to deliver end to end logistics services in compliance with an increasingly complex and highly regulated pharmaceutical industry. As we look to further penetrate the high margin health care segment, I am confident this achievement will unlock even more opportunity for us. Within automotive, we recently created a distinct vertical with its own dedicated leadership team, and we are off to a strong start. We were recently awarded GM Supplier of the Year Award for the twenty first year in a row.

Our focus for fiscal year twenty six will be growing within the $18,000,000,000 high margin segment of the North American automotive market, a subsector focused on premium services that supports automotive supply chain. Additionally, small and medium customers remain central to our commercial strategy. FedEx Rewards, our loyalty program, is unique in the industry and has become an important gateway for small and medium sized business businesses. I'm especially pleased with our revenue growth in The US as the rewards program enrollment increased 8% year over year. The rewards program creates a more seamless, personalized customer experience that drives customer loyalty.

I want to again thank our team for continuing to execute on our commercial strategies. Their efforts are improving the customer experience, helping our customers navigate this period of volatility and positioning us well for sustainable growth that flows through to the bottom line. And with that, I'll turn it over to John.

Thank you, Brie, and hello, everyone. First, I'd like to share that the culture and extraordinary business that Fred Smith created unconditionally drew me to FedEx. I always greatly respected Fred for my earliest encounters with him in the industry, and I'm grateful and beyond privileged to have worked directly with him these past two years. Now turning to the quarter. I'm very pleased with what we achieved in Q4.

This includes the actions we've taken to increase stockholder value, our discipline on CapEx and the transformation we advanced all while navigating a very complex environment. Our Q4 results reflect our ability to flex our network, onboard new revenue and manage costs. On a consolidated basis, we delivered $18.19 in adjusted earnings per share for FY 2025, achieving two consecutive years of earnings growth despite the prolonged freight industry softness, two fewer operating days, the expiration of the U. S. Postal Service contract and extraordinary weather events.

Federal Express also posted higher FY 2025 results year over year despite significant headwinds with adjusted operating income of $151,000,000 and $641,000,000 in revenue growth. This strong flow through to the bottom line demonstrates the powerful leverage inherent in our business, a reality that will become even more apparent when we see a recovery in the industrial economy. While consolidated adjusted operating income declined $121,000,000 This was due to FedEx Freight results, which continue to be challenged due to the prolonged weakness in the industrial economy. Taking a closer look at consolidated Q4 performance on a year over year basis, we delivered an 8% increase in adjusted operating income on a 1% increase in revenue. These results reflect our ability to grow revenue profitably as well as our ongoing commitment to managing our cost structure.

Our revenue performance includes recent healthcare wins, which are part of our strategy to profitably grow in B2B. Adjusted operating income increased by $147,000,000 and adjusted operating margin expanded by 60 basis points. We achieved this result despite a $165,000,000 headwind from one fewer operating day, dollars 120,000,000 headwind from the U. S. Postal Service contract expiration and pressures from the global trade policy changes.

FedEx (FDX) Q4 2025 Earnings Call Transcript

Company Participants