How does FedEx (FDX) make money?

FedEx (FDX) generates revenue primarily from Federal Express Segment, which accounted for 80.7% of total revenue in TTM through Q1 2026. The company reported $91.93B in revenue and converted 4.9% of it into net profit, equivalent to roughly $4.48B in net income — what's left after the cost of revenue, operating expenses, interest, and income taxes.

What is the gross profit margin of FedEx (FDX)?

FedEx (FDX) reported a gross profit margin of 24.4% in TTM through Q1 2026, equivalent to $22.44B in gross profit on $91.93B in revenue. Gross margin measures how much of each dollar of revenue remains after the direct cost of producing or delivering the product — a higher figure typically signals pricing power, scale, or a less capital-intensive business model.

What is the operating profit margin of FedEx (FDX)?

FedEx (FDX) reported an operating profit margin of 6.5% in TTM through Q1 2026, equivalent to $6.01B in operating income. Operating margin captures profitability after research & development, sales & marketing, and general & administrative expenses — but before interest, taxes, and one-off items — and is the cleanest single read on the underlying business's efficiency.

What is the net profit margin of FedEx (FDX)?

FedEx (FDX) reported a net profit margin of 4.9% in TTM through Q1 2026, equivalent to $4.48B in net income. Net margin is the bottom-line share of revenue that survives every expense — operating costs, interest, and income taxes — and is the figure that flows directly into earnings per share.

Is FedEx (FDX) profitable?

Yes. FedEx (FDX) reported $4.48B in net income for TTM through Q1 2026, with a net profit margin of 4.9%. The company earned more from its operations than it paid out in costs, interest, and income taxes, leaving positive earnings on the bottom line.

How much does FedEx (FDX) spend on capital expenditures?

FedEx (FDX) spent $3.81B on capital expenditures (CapEx) during TTM through Q1 2026, roughly 4.1% of total revenue. CapEx represents long-lived investment in property, equipment, data centres, and other physical infrastructure, and is subtracted from operating cash flow to arrive at free cash flow.

How much free cash flow does FedEx (FDX) generate?

FedEx (FDX) generated $4.37B in free cash flow during TTM through Q1 2026, a free-cash-flow margin of 4.8%. Free cash flow is the cash left after capital expenditures and represents the discretionary pool the company can use to pay dividends, repurchase shares, repay debt, or fund acquisitions without raising external capital.

What is the effective tax rate of FedEx (FDX)?

FedEx (FDX) had an effective tax rate of 24.1% in TTM through Q1 2026. The effective rate is the actual share of pre-tax income paid as income taxes and can differ materially from the statutory rate due to foreign earnings mix, tax credits (such as R&D), share-based compensation deductions, and one-off discrete items.

What are the main business segments of FedEx (FDX)?

FedEx (FDX) reports revenue across 4 reportable product segments, led by Federal Express Segment at 80.7% of total revenue in TTM through Q1 2026. See the revenue-by-segment table on this page for the full breakdown and how each segment feeds into the income-statement waterfall above.

How FedEx Makes Money: 2026 Visual Revenue Map

FedEx (FDX) Income Statement Flow — TTM through Q1 2026

Calculated from the four most recent reported quarters, ending February 28, 2026 (reported March 19, 2026).

FedEx discloses geographic revenue only in annual filings. to view the full breakdown.

FedEx (FDX) Revenue by Product Segment — TTM through Q1 2026

Aggregated from the four quarterly disclosures behind this TTM. Minor differences vs the company's annual filing can occur if reported segments changed mid-year.

Revenue contribution by product segment for FedEx (FDX) in TTM through Q1 2026.
Segment	Revenue (USD)	% of total
Federal Express Segment	$74.21B	80.7%
Corporate Reconciling Items And Eliminations	$14.18B	15.4%
Other International Revenue	$2.84B	3.1%
Fedex Freight Segment	$703.14M	0.8%
Total	$91.93B	100%

Federal Express Segment$74.21B
Corporate Reconciling Items And Eliminations$14.18B
Other International Revenue$2.84B
Fedex Freight Segment$703.14M
Total$91.93B

Revenue Breakdown — TTM through Q1 2026

In TTM through Q1 2026, FedEx (FDX) reports revenue across 4 operating segments; the largest segment was Federal Express Segment at 80.7%, followed by Corporate Reconciling Items And Eliminations (15.4%) and Other International Revenue (3.1%).

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