FedExFDX -0.13%83 Gross Margin % is 21.35% as of Feb. 2026, which is 1% below its 10-year median of 21.47. GuruFocus rates FDX with a GF Score™ of 83/100 and a GF Value™ of $231.61 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 985 Transportation companies, FedEx ranks better than 52.99% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. FedEx's Gross Profit for the
three
months ended in Feb. 2026 was $5,123 Mil. FedEx's Revenue for the
three
months ended in Feb. 2026 was $24,000 Mil. Therefore, FedEx's Gross Margin % for the quarter that ended in Feb. 2026 was 21.35%.
The historical rank and industry rank for FedEx's Gross Margin % or its related term are showing as below:
FDX'
s Gross Margin % Range Over the Past 10 Years
Min: 19.28 Med: 21.47 Max: 22.08
Current: 22.04
During the past 13 years, the highestGross Margin % of FedEx was 22.08%. The lowest was 19.28%. And the median was 21.47%.
FDX's Gross Margin % is ranked better than 52.99% of 985
companies
in the Transportation industry
Industry Median: 20.42
vs FDX: 22.04
FedEx had a gross margin of 21.35% for the quarter that ended in Feb. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for FedEx was 1.70% per year.
FedEx (NYSE:FDX) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
FedEx had a gross margin of 21.35% for the quarter that ended in Feb. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
FedEx Gross Margin % Related Terms
FedEx Gross Margin % Historical Data
* Premium members only.
The historical data trend for FedEx's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
FDX vs UPS, JBHT, FDXFw: Gross Margin % Comparison
For the Integrated Freight & Logistics subindustry, FedEx's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
FedEx Gross Margin % vs Transportation Industry
For the Transportation industry and Industrials sector, FedEx's Gross Margin % distribution charts can be found below:
* The bar in red indicates where FedEx's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
FedEx (FDX) has a Gross Margin % of 21.35% as of Feb. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on FedEx and its competitors. This is near median its historical median of 21.47. Over the past decade, FedEx's Gross Margin % has ranged from 19.28 to 22.08. According to the industry distribution chart, FedEx ranks #463 out of 985 companies in the Transportation industry, placing it in the top 47%.
Is FedEx's Gross Margin % too high?
FedEx's current Gross Margin % of 21.35% is near median its 10-year median of 21.47. Over the past 10 years, this metric has ranged from a low of 19.28 to a high of 22.08. The Transportation industry median Gross Margin % is 20.42. FedEx's value of 21.35% is 4.6% above this industry median. Based on the distribution chart, FedEx ranks #463 out of 985 companies in the Transportation industry, which is above the industry midpoint. Overall, FedEx has a GF Score™ of 83/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does FedEx's Gross Margin % compare to UPS and JBHT?
According to the Transportation industry distribution chart, FedEx ranks #463 out of 985 companies for Gross Margin %. This puts FedEx in the upper half of its industry. The industry median Gross Margin % is 20.42. FedEx's value of 21.35% is 4.6% above this benchmark. Historically, FedEx's own Gross Margin % has ranged from 19.28 to 22.08 over the past decade. While the company's 10-year median is 21.47 vs. the industry median of 20.42, FedEx has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Transportation company?
The median Gross Margin % among Transportation companies is 20.42, based on 985 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. FedEx's current Gross Margin % of 21.35% is 4.6% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on FedEx and its competitors. For the Transportation industry, the median Gross Margin % is 20.42 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. FedEx's current Gross Margin % is 21.35%, which is near median its own 10-year median of 21.47. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is FedEx stock overvalued right now?
Based on GuruFocus' analysis, FedEx (FDX) is currently considered Significantly Overvalued. The stock's GF Value™ is $231.61, compared to a current price of $316.83 — trading 36.8% above its estimated fair value. The current Gross Margin % is 21.35%, which is near median its 10-year median of 21.47 and 4.6% above the Transportation industry median of 20.42. FedEx's overall GF Score™ is 83/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For FedEx (FDX), the current Gross Margin % is 21.35% as of Feb. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is FedEx (FDX) Overvalued in 2026?
Based on GuruFocus' analysis, FedEx stock appears to be overvalued.
The current stock price of $316.83 is trading 36.8% above its estimated GF Value™ of $231.61.
GuruFocus considers FedEx to be Significantly Overvalued.
Key valuation signals for FDX:
Gross Margin %: 21.35% (near median its 10-year median of 21.47)
GF Value™: $231.61 vs. price of $316.83 (36.8% above fair value)
Industry Position: 4.6% above the Transportation median (#463 of 985)
No single metric tells the full story. See the FDX stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
FedEx pioneered overnight delivery in 1973 and remains the world's largest express package provider. Following the June 2026 spinoff of FedEx Freight (less-than-truckload shipping), the firm's Federal Express segment—which houses the core package delivery operations—makes up more than 95% of total revenue (previously 87%). The remainder stems from other services, including FedEx Office, which provides document production/shipping, and FedEx Logistics, which provides global forwarding. FedEx acquired Dutch parcel delivery firm TNT Express in 2016, boosting its presence across Europe. TNT was previously the fourth-largest global parcel delivery provider.
83GF Score
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