FedExFDX -0.06%83 Pretax Margin % is 5.26% as of Feb. 2026, which is 13% below its 10-year median of 6.07. 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 1,005 Transportation companies, FedEx ranks worse than 52.14% on this metric.
Pre-Tax margin is calculated as Pre-Tax Income divided by its Revenue. FedEx's Pre-Tax Income for the
three
months ended in Feb. 2026 was $1,263 Mil. FedEx's Revenue for the
three
months ended in Feb. 2026 was $24,000 Mil. Therefore, FedEx's pretax margin for the quarter that ended in Feb. 2026 was 5.26%.
The historical rank and industry rank for FedEx's Pretax Margin % or its related term are showing as below:
FDX'
s Pretax Margin % Range Over the Past 10 Years
Min: 0.94 Med: 6.07 Max: 7.95
Current: 6.43
FDX's Pretax Margin % is ranked worse than 52.14% of 1005
companies
in the Transportation industry
Industry Median: 6.77
vs FDX: 6.43
FedEx (NYSE:FDX) Pretax Margin % Explanation
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
FedEx Pretax Margin % Related Terms
FedEx Pretax Margin % Historical Data
* Premium members only.
The historical data trend for FedEx's Pretax 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: Pretax Margin % Comparison
For the Integrated Freight & Logistics subindustry, FedEx's Pretax Margin %, along with its competitors' market caps and Pretax 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 Pretax Margin % vs Transportation Industry
For the Transportation industry and Industrials sector, FedEx's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where FedEx's Pretax 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.
FedEx (FDX) has a Pretax Margin % of 5.26% as of Feb. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on FedEx and its competitors. This is 13% below median its historical median of 6.07. Over the past decade, FedEx's Pretax Margin % has ranged from 0.94 to 7.95. According to the industry distribution chart, FedEx ranks #524 out of 1005 companies in the Transportation industry, placing it in the top 52.1%.
Is FedEx's Pretax Margin % too high?
FedEx's current Pretax Margin % of 5.26% is 13% below median its 10-year median of 6.07. Over the past 10 years, this metric has ranged from a low of 0.94 to a high of 7.95. The Transportation industry median Pretax Margin % is 6.77. FedEx's value of 5.26% is 22.3% below this industry median. Based on the distribution chart, FedEx ranks #524 out of 1005 companies in the Transportation industry, which is below 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 Pretax Margin % compare to UPS and JBHT?
According to the Transportation industry distribution chart, FedEx ranks #524 out of 1005 companies for Pretax Margin %. This places FedEx in the lower half of its industry. The industry median Pretax Margin % is 6.77. FedEx's value of 5.26% is 22.3% below this benchmark. Historically, FedEx's own Pretax Margin % has ranged from 0.94 to 7.95 over the past decade. While the company's 10-year median is 6.07 vs. the industry median of 6.77, FedEx has consistently been below 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 Pretax Margin % for a Transportation company?
The median Pretax Margin % among Transportation companies is 6.77, based on 1,005 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. FedEx's current Pretax Margin % of 5.26% is 22.3% below 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 Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on FedEx and its competitors. For the Transportation industry, the median Pretax Margin % is 6.77 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. FedEx's current Pretax Margin % is 5.26%, which is 13% below median its own 10-year median of 6.07. 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 $317.06 — trading 36.9% above its estimated fair value. The current Pretax Margin % is 5.26%, which is 13% below median its 10-year median of 6.07 and 22.3% below the Transportation industry median of 6.77. 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 Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For FedEx (FDX), the current Pretax Margin % is 5.26% 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 $317.06 is trading 36.9% above its estimated GF Value™ of $231.61.
GuruFocus considers FedEx to be Significantly Overvalued.
Key valuation signals for FDX:
Pretax Margin %: 5.26% (13% below median its 10-year median of 6.07)
GF Value™: $231.61 vs. price of $317.06 (36.9% above fair value)
Industry Position: 22.3% below the Transportation median (#524 of 1005)
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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