Q2 2026 FedEx Corp Earnings Call Transcript
Key Points
- FedEx Corp (FDX) achieved high single-digit revenue growth and high teens adjusted EPS growth despite external challenges.
- The company demonstrated strong operating leverage with an 8% year-over-year increase in revenue and a 24% growth in adjusted operating income.
- FedEx Corp (FDX) is on track to spin off FedEx Freight as a separately listed public company, which is expected to unlock significant value.
- The company is successfully executing its Network 2.0 transformation, leading to improved operational efficiency and cost reductions.
- FedEx Corp (FDX) is leveraging AI and digital tools to enhance operational efficiency and customer service, contributing to revenue growth.
- The grounding of the MD11 fleet resulted in a $25 million impact on adjusted operating income and is expected to continue affecting costs.
- FedEx Freight experienced a decline in adjusted operating income due to lower average daily shipments and ongoing industry challenges.
- The company faces a $600 million headwind in the second half of the fiscal year due to variable incentive compensation, MD11 groundings, and LTL industry softness.
- FedEx Corp (FDX) anticipates continued pressure on international export volumes due to global trade policy changes.
- The company is incurring significant costs related to the spin-off of FedEx Freight, which are impacting financial results.
Good day, and welcome to the FedEx second-quarter fiscal 2026 earnings call. (Operator Instructions) Please note, this event is being recorded. I would now like to turn the conference over to FedEx Vice President of Investor Relations, Jeni Hollander.
Good afternoon, and welcome to FedEx Corporation's second-quarter earnings conference call. The second quarter earnings 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&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
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