How does FedEx (FDX) make money?

FedEx (FDX) generates revenue primarily from Federal Express Segment, which accounted for 83.7% of total revenue in TTM through Q2 2026. The company reported $94.7B in revenue and converted 4.7% of it into net profit, equivalent to roughly $4.43B 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 22.9% in TTM through Q2 2026, equivalent to $21.7B in gross profit on $94.7B 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 6.7% in TTM through Q2 2026, equivalent to $6.38B 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 4.7% in TTM through Q2 2026, equivalent to $4.43B 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 $4.43B in net income for TTM through Q2 2026, with a net profit margin of 4.7%. 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 Q2 2026, roughly 4.0% 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 $5.12B in free cash flow during TTM through Q2 2026, a free-cash-flow margin of 5.4%. 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 23.5% in TTM through Q2 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 83.7% of total revenue in TTM through Q2 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.

Where does FedEx (FDX) generate most of its revenue?

UNITED STATES is the largest geographic market for FedEx (FDX), accounting for 71.7% of revenue in the most recent annual filing. The complete regional split — including international markets and any Rest-of-World rollup — is shown in the revenue-by-geography table on this page.

How FedEx Makes Money: 2026 Visual Revenue Map

FedEx (FDX) Income Statement Flow — TTM through Q2 2026

Calculated from the four most recent reported quarters, ending May 31, 2026 (reported July 20, 2026).

FedEx (FDX) Revenue by Product Segment — TTM through Q2 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), TTM through Q2 2026.
Segment	Revenue (USD)	% of total
Federal Express Segment	$79.3B	83.7%
Corporate Reconciling Items And Eliminations	$11.4B	12%
Other International Revenue	$3.28B	3.5%
Fedex Freight Segment	$756M	0.8%
Total	$94.7B	100%

Federal Express Segment$79.3B
Corporate Reconciling Items And Eliminations$11.4B
Other International Revenue$3.28B
Fedex Freight Segment$756M
Total$94.7B

FedEx (FDX) Revenue by Geography — TTM through Q2 2026

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

Revenue contribution by geographic region for FedEx (FDX), TTM through Q2 2026
Region	Revenue (USD)	% of total
UNITED STATES	$67.9B	71.7%
Non Us	$26.8B	28.3%
Total	$94.7B	100%

UNITED STATES
Non Us
Total

Revenue Breakdown — TTM through Q2 2026

In TTM through Q2 2026, FedEx (FDX) reports revenue across 4 reportable product segments; the largest segment was Federal Express Segment at 83.7%, followed by Corporate Reconciling Items And Eliminations (12%) and Other International Revenue (3.5%). Geographically, UNITED STATES accounted for 71.7% of revenue, followed by Non Us (28.3%).

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