The companies on the Global 500 employ 70.2 million people, and their revenue represents more than one-third of the world’s GDP.

Fortune Global 500

With a combined revenue of $21 trillion and $2.1 trillion in profits, the 2026 Fortune 500 is the definitive list of America's largest companies.

Fortune 500

The 300 companies on this year’s list brought in over $12.5 trillion in revenue for the latest 12 months, with the median revenue figure at $24 billion.

America's Most Innovative Companies

AI is a major force shaping this year’s list—but it’s far from the only story.

World's Most Admired Companies

This ranking evaluates how Fortune 500 companies are deploying AI, and how technology leaders value those investments relative to industry peers.

Fortune AIQ 50

The corporations on our annual list of the world's 500 largest companies combined to generate $41.7 trillion in revenue over the past year.

Almost $20 trillion in revenue—and a record-breaking $1.87 trillion in profits. Introducing the 2025 Fortune 500, the definitive list of the biggest companies in America.

The 300 companies on this year’s list brought in over $12.6 trillion in revenue for the latest 12 months, with the median revenue figure at $22 billion.

Leaders in all industries rely more than ever on Big Tech—and appreciate the giants that deliver, at scale, without drama.

The corporations on our annual list posted aggregate revenues of $41 trillion for the second year in a row.

Industries included in the sector are airlines, transportation equipment, logistics, mail and freight delivery, railroads, shipping, and trucking.

Fortune Sector Leaders: Transportation

The Fortune 500, in its 70th year in 2024, ranks the biggest U.S. companies by revenue.

The 200 companies on this list are transforming industries from the inside out.

The 26th edition of the list shows how much esteem Big Tech giants command among other business leaders.

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The 25th Fortune World’s Most Admired Companies list suggests that tech giants’ peers respect them as much as ever.

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The corporations on our annual list of the world’s largest companies delivered a record $41 trillion in aggregate revenues.

The 300 companies on this list are transforming industries from the inside out.

The Fortune 500, in its 69th year in 2023, ranks the biggest U.S. companies by revenue.

F500-2023-041-FedEx

The parcel delivery giant reported revenue of $93.5 billion (up 11.4%) and profits of $3.8 billion (down 26.9%). Rajesh Subramaniam succeeded founder Frederick Smith as CEO on June 1, 2022. 
<ul> 
 	<li>In February 2023, FedEx cut 10% of global officer and director jobs, a cost-cutting move prompted in part by diminishing revenue from e-commerce.</li> 
 	<li>Subramaniam announced in April 2023 that FedEx would combine its express and ground businesses. Smith had long defended keeping the units separate, even as analysts and investors urged their merger to simplify operations. Subramaniam says the move will help consumers understand pricing and shipping options more easily.</li> 
 	<li>FedEx is the fourth largest employer on the Fortune 500.</li> 
</ul>

Just as it dominates our economy, Big Tech now dominates Fortune’s annual ranking of corporate reputation.

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When it comes to supporting employees, flexibility, diversity, and a few extra paid days off go a long way.

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As one of the largest delivery services companies in the U.S., FedEx has employed thousands of workers on the front lines of the pandemic. To support them, the company debuted a new health care advocate program called Choose Well Care Connect, which provides those workers with a single point of contact whenever they have a health care need, helping them navigate a complex system of vendors. It’s also made 24/7 confidential counseling available to all employees, eligible dependents, and household members, even if they aren’t actively participating in the plan. The company facilitates career advancement through the FedEx Learning Center, which offers over 25,000 online courses; Aspire, which provides hourly employees access to experiential learning, coaching, and development opportunities; and direct tuition assistance for higher education. “I greatly appreciate the mentoring and guidance the managers at FedEx offer to everyone,” says one staffer. “I feel there is a sense of caring from management to their employees.”

Fortune 100 Best Companies to Work For

Aggregate sales hit $37.8 trillion last year—an increase of 19%, the highest annual growth rate in the list’s history.

Organizations on this annual list positively impact people and communities across multiple countries.

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World’s 25 Best Workplaces

This year’s Fortune 500 marks the 68th running of the list.

F500 2022-FedEx

The delivery services giant climbed six spots to No. 39 on this year’s Fortune 500. Thanks to an increase in e-commerce during the pandemic; the company predicts its deliveries could exceed 100 million a day in calendar 2022. FedEx will experience an epochal change in leadership on June 1, 2022, when founder and CEO Frederick W. Smith will step down after more than 50 years at the helm. Raj Subramaniam will succeed Smith, who remained the largest shareholder in FedEx as of March 2022, with a stake of about 7.3%.

After a year in which humanity leaned more heavily than ever on tech giants, see which companies topped Fortune's ranking of corporate reputation.

WMAC 2021-16-FedEx

Total revenue for the world’s biggest companies fell 4.8% to $31.7 trillion this year—the first decline in half a decade.

G500 135 Fedex

Second only to United Parcel Service in the U.S. package-shipping business, FedEx said COVID-19 affected “virtually all revenue and expense line items” during the final quarter of its latest fiscal year, which ended May 31, 2020, dinging revenues 0.7% to $69.2 billion versus the year prior. Despite the disruption, profits surged an eye-popping 138% to $1.29 billion, nearly rivaling much bigger UPS’s $1.34 billion in profits. The jump is mostly due to earlier costly investments FedEx made to revamp its historically business-centric delivery network so it can better cater to residential customers.

This year’s Fortune 500 marks the 67th running of the list.

F500-2021-45-FedEx

Second only to United Parcel Service in the package-shipping business, FedEx inched up two spots to No. 45 on this year’s Fortune 500 list. The company said COVID-19 affected “virtually all revenue and expense line items” during the final quarter of its latest fiscal year, which ended May 31, 2020, dinging revenues 0.7% to $69.2 billion versus the year prior. Despite the disruption, profits surged an eye-popping 138% to $1.29 billion, nearly rivaling much bigger UPS’s $1.34 billion in profits. The jump is mostly due to earlier costly investments FedEx made to revamp its historically business-centric delivery network so it can better cater to residential customers.

For an astounding 13th straight year, Apple claims the top spot in Fortune’s annual ranking of corporate reputation, based on a survey of almost 3,800 executives, directors, and analysts.

This year's Fortune Global 500 generated $33.3 trillion in revenues and $2.1 trillion in profits.

G500-2020-148-FedEx

Second only to United Parcel Service in the package-shipping business, FedEx grew faster than its rival in 2019. The delivery dynamo brought in nearly $69.7 billion in its most recent fiscal year, up 6.5% from FY 2018. Still, FedEx investors despaired over a once marquee customer, Amazon, turning to a competitor. Readying itself for the fight of its life, FedEx spent big sums to revamp its delivery network, known primarily for catering to businesses, to go the “last mile” and drop off boxes on residential doorsteps. Costly investments, in part, caused profits to plummet more than 88%, to $540 million. On a December earnings call, FedEx’s chief financial officer described the hit as “horrific.” But instead of slashing costs, FedEx has swelled its ranks, adding nearly 30,000 more employees over the past year.

This year's Fortune 500 marks the 66th running of the list.

F500-2020-047-FedEx

Second only to United Parcel Service in the package-shipping business, FedEx grew faster than its rival in 2019. The delivery dynamo brought in nearly $69.7 billion in its most recent year fiscal year, up 6.5% from fiscal year 2018—thereby maintaining the No. 47 spot on this year’s list. But FedEx investors despaired over a former marquee customer, Amazon, flipping into a competitor. Readying itself for the fight of its life, FedEx spent big sums to revamp its delivery network, known primarily for catering to businesses, to go the “last mile” and drop off boxes on residential doorsteps. Costly investments, in part, caused profits to plummet 88.2% to $540 million. On a December earnings call, FedEx’s chief financial officer described the hit as “horrific.” But instead of slashing costs, FedEx has swelled its ranks, adding nearly 30,000 more employees over the past year.

Here are the World's Most Admired Companies for 2019 as ranked in their industries. See who made the list.

Our 2019 list of the 100 best companies as ranked by their employees. See which companies made the list.

This year's Fortune Global 500 generated $27.7 trillion in revenues and $1.5 trillion in profits.

This year's Fortune 500 marks the 65th running of the list.

Here are the World's Most Admired Companies for 2018 as ranked in their industries. See who made the list.

Our 2018 list of the 100 best companies as ranked by their employees. See which companies made the list.

This year's Fortune 500 marks the 64th running of the list.

We surveyed tens of thousands of young employees to create this list of millennials’ favorite workplaces.

best-workplaces-millennials-2018-FedEx

Employees say: 
 
&nbsp; 
 
"It is quite unique how well FedEx takes cares of its employees. I have never worked somewhere where I have been paid so well and been given so many benefits, even as a part-time employee. I feel taken care of and that the company respects what I do." 
 
&nbsp; 
 
"Since I started working for FedEx Freight as a part-time dock worker over four years ago. I have received nothing but great advice, as well as great opportunities to move up. I climbed my way to management with the support of my uppers. The co-workers I have met along the way have been the friendliest with my best interests in mind. I have never worked for a company that I've been so proud of." 
 
&nbsp;

100 Best Large Workplaces for Millennials

Here are the World's Most Admired Companies for 2017 as ranked in their industries. See who made the list.

Our 2017 list of the 100 best companies as ranked by their employees. See which companies made the list.

This year's Fortune 500 marks the 63rd running of the list.

Here are the World's Most Admired Companies for 2016 as ranked in their industries. See who made the list.

This year's Fortune Global 500 generated $27.6 trillion in revenues and $1.5 trillion in profits.

This year's Fortune 500 marks the 62nd running of the list.

Business insiders have spoken: Asked which companies they most admire, more than 4,100 executives, directors, and analysts chose these top 50 All-Stars.

The world's 500 largest companies generated $31.2 trillion in revenues and $1.7 trillion in profits in 2014. Together, this year's Fortune Global 500 employ 65 million people worldwide and are represented by 36 countries.

This year's Fortune 500 marks the 61st running of the list. Wal-Mart claims the top spot again. See who made the list.

Global business is back. After limping through a worldwide financial crisis and economic slowdown, the 500 largest companies ranked by revenues shattered all sorts of performance records in 2013: They racked up combined revenues of $31.1 trillion, up 2.5% from 2012, and profits soared 27% to nearly $2 trillion. China’s 95 companies (up from 89 last year) posted $5.8 trillion in revenues. The U.S. has four fewer companies on the list than last year but remains (for now) the country leader, with 128 corporations on the list—including No. 1 Wal-Mart Stores—reporting $8.6 trillion in revenues. 

Wal-Mart stayed on top as its sales crept closer to half-a-trillion dollars. Apple moved into the top five. And UnitedHealth Group continued its steady climb. 

Best Companies

Years on list

U.S. employees

U.S. job openings

Year founded

Perks

100% health coverage

Unlimited sick days

Telecommuting

Job sharing

Subsidized childcare

Compressed work weeks

Fully-paid sabbaticals

On-site fitness/subsidized gym

On-site medical care facility

Non-discrimination policy includes sexual orientation

Sick days for part-timers

College tuition reimbursement

Student loan debt repayment

Paid Time Off: Full-time Employees

# Sick days

Hiring/staffing (past 12 Months)

# of job applicants

Company Info

Industry

Founded

City

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Web Address

Millennials In The Organization

# of millennial employees

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Sector

Current All-Star Rank

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People Management

Use of Corporate Assets

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Global Competitiveness

Strongest Dimension

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Total Return to Investors (last year)

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Total Return to Investors (10 year, annualized)

FedEx, founded in 1971, is a multinational delivery services company known for its overnight shipping and pioneering tracking systems. Headquartered in Memphis, FedEx operates in more than 220 countries and territories, providing an array of services including express transportation, freight, e-commerce, and business solutions.

Q4 2026

Q3 2026

Q2 2026

Q1 2026

Q4 2025

Q3 2025

Q2 2025

FedEx (FDX): Company Profile, Stock Price, News, Rankings

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FedEx

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Good day, and welcome to the FedEx Third Quarter Fiscal twenty twenty five Earnings Call. All participants are in listen only mode. Please note, this event is being recorded. I would now like to turn the conference over to Jenny Hollander, Vice President of Investor Relations. Please go ahead.

Good afternoon and welcome to FedEx Corporation's third quarter earnings conference call. The third 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 and 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 forward looking statements. For additional information on these factors, please refer to our press releases and filings with the SEC. Today's presentation also includes certain non GAAP financial measures. Please refer to the Investor Relations portion of our website at fedex.com for a reconciliation of the non GAAP financial measures discussed on this call to the most directly comparable GAAP measures. Joining us on the call today are Raj Subramaniam, President and CEO Brie Carreri, Executive Vice President and Chief Customer Officer and John Dietrich, Executive Vice President and CFO.

Thank you, Jenny. I want to start by expressing my heartfelt gratitude to our team members. They delivered a strong peak within a compressed timeline and managed weather events ranging from unprecedented wildfires to severe winter storms. They accomplished this with a focus on safety and customer service, and I'm very appreciative of their dedication and success. Now turning to our Q3 results.

Revenue was up 2% growing on a year over year basis for the first time this fiscal year. Our DRIVE savings continue to build sequentially and we achieved $600,000,000 of savings in the quarter. Taken together, these two factors enabled us to achieve 12% adjusted operating income growth compared to last year. At Federal Express Corporation, we delivered strong year over year results with adjusted operating income up 17% despite significant headwinds from the expiration of the United States Postal Service contract and severe weather events. Weakness in the industrial economy continued to pressure our higher margin B2B volumes.

Similar to last quarter, this dynamic was most pronounced at freight where fewer shipments and lower rates continue to negatively affect our results, albeit to a lesser extent than last quarter. Considering our B2B mix, we are well positioned to capture strong incremental flow through when the industrial economy recovers. The current environment, however, is adding uncertainty to demand. We continue to work closely with our customers to help them adapt to this evolving market. Our flexible and unmatched global network, digital tools and data ecosystem enable us to quickly support our customers' needs.

With our vast data on cross border trade, we are uniquely positioned to create more value for our customers as they navigate change. This includes providing a streamlined clearance experience for customers while helping them comply with regulatory requirements. And through our automated processes, we can clear packages more quickly, better address improperly filed paperwork and reduce manual work to respond rapidly to our customers' needs while improving our operating efficiency. As a reminder, in terms of our revenue split by geography, we serve an extremely diversified customer base across the more than two twenty countries and territories. To put some numbers around this, taking our FY '20 '20 '5 revenue through the third quarter, nearly 75% comes from our U.

S. Domestic services. Another approximately 10% of our revenue comes from non U. S. Intra country or intra regional services.

And from a bilateral U. S. Trade perspective, our biggest single country exposure represents only about 2.5% of total revenue. Against this backdrop, we remain focused on what we can control. First, Q3 DRIVE savings continue to ramp and were in line with our expectations.

We expect to achieve our incremental target of $2,200,000,000 for FY 2025 and our total of $4,000,000,000 of our FY 2023 baseline. Second, we are creating a more flexible, efficient and intelligent network. As planned, we resumed Network two point zero conversions following peak. We have optimized five U. S.

Stations since the beginning of the calendar year and expect to optimize 45 more in Q4. We are on track to complete the rollout in Canada by the April. By the end of FY twenty twenty five, about 12% of our average daily global volume will flow through network two point zero optimized facilities. Third, Tricolor is driving better asset utilization as we improve aircraft density and better leverage our surface network. We have a broad range of KPIs that we are tracking to measure our progress.

We're especially pleased that on a year over year basis, payloads across our air network are up 9% with a 5% improvement in density. This is a key objective of our Tricolor operating model. Importantly, our progress is leading to positive flow through on revenue growth from international export freight. Fourth, our planned transition away from the U. S.

Postal Service contract is going well and we are continuing to remove costs associated with the expired contract. Fifth, our freight separation work is underway. John will share more details shortly. And lastly, we are providing our customers with the best value proposition in the industry. FedEx Ground and FedEx Home Delivery are faster to more locations than UPS Ground.

As we look to the fourth quarter, in light of the uncertain demand environment and higher than previously expected inflationary pressures on our cost base, we are lowering our FY '20 '20 '5 adjusted EPS outlook to $18 to $18.6 John will provide more color on the underlying assumptions. I'm excited about our transformation progress as we continue to integrate our networks, reduce our cost to serve and enable better performance. Technology remains a key facilitator of our transformation. Last quarter, I shared details on the encouraging improvement we are seeing in Europe. That trend continued in Q3 with our simplified technology platform driving both operational efficiency and a better experience for our customers.

This is also leading to the best European service levels we have seen in years, which is driving profitable share growth. We remain on track to achieve the $600,000,000 in total DRIVE savings from Europe by the end of this fiscal year. In support of our network transformation, last month, we acquired RouteSmart Technologies, a global leader in route optimization solutions. This acquisition allows us to bring in house a dynamic route mapping solution with the best in class algorithm. Our legacy ground business has used this technology with great success and we are now rolling it out globally.

This will be an important enabler for both Network two point zero and our global network transformation, helping our team members to work safer and smarter. In closing, I'm proud of the team for their continued success. We navigated many headwinds in this third quarter, including a volatile demand environment, the Postal Service contract expiration, severe weather events and inflation. Yet, we still delivered 60 basis points of adjusted operating margin expansion and a 12% improvement in adjusted operating income. Looking ahead, I'm confident that our transformation initiatives such as DRIVE, Network two point zero and Tricolor will create long term value for our stakeholders.

Thank you, Raj. First, I also want to thank our team for a very successful peak. On Cyber Monday, we picked up nearly 24,000,000 packages in The United States. That's nearly 70% more than we pick up in The U. S.

On an average day. And given the compressed timeline, we handled more packages per day year over year this peak season, while of course continuing to deliver the Purple Promise for all our customers. While demand during peak exceeded our expectations, post peak trends were largely consistent with the market weakness of recent quarters. Consolidated revenue increased 2%, driven by higher volume at Federal Express, partially offset by freight. The weak industrial economy continued to weigh on our global priority volumes in our LTL business.

Against this backdrop, we continued to focus on profitable share growth. As we closed out calendar year 2024, we took profitable share in The U. S. Domestic and in international parcel and also because of our Tricolor strategy, we grew profitable global air freight share. Looking at each segment on a year over year basis, at Federal Express, revenue increased 3%, driven by increased volume in our deferred services.

At Freight, lower volumes, fuel surcharges and weight per shipment pressured our top line performance. This led to a 5% revenue decline. Overall volume trends improved in the quarter to our highest year over year average daily volume growth since Q4 of fiscal year twenty twenty one led by 5% growth in Federal Express package volumes. Our volume growth was driven by deferred services and the timing benefit of Cyber Week. And while LTL volumes were pressured, the rate of decline in average daily shipments improved compared to Q2.

Across U. S. Domestic express services, volumes increased slightly with growth in deferred services partially offset by a decline in priority volume. Ground volumes increased 7%, supported both by B2B and B2C growth. International export package volumes increased 8% in the quarter due to continued growth in the international economy.

With airfreight, average daily pounds increased 3% for international priority freight. As we shared last quarter, the growth here is tied directly to our tricolor strategy to grow profitably in the global airfreight market. As expected, total U. S. Domestic express freight pounds declined significantly, largely due to the postal service contract expiration.

And at FedEx Freight, the soft industrial economy led to a 5% decline in average daily shipments and a 3% decline in weight per shipment. We remain focused on quality growth amid a competitive but rational pricing environment. I am encouraged by recent pricing trends. Holiday demand surcharges supported our results and consistent with historical trends, we are seeing a strong capture rate on the 5.9% GRI implemented this past January. At Federal Express, U.

S. Domestic package yield was flat year over year as higher U. S. Express overnight package, ground commercial and home delivery yield was offset by lower ground economy yield.

line with our expectations, international export package yield declined, driven by international economy, partially offset by an 8% yield increase for international priority. At FedEx Freight, revenue per shipment declined 1% due to lower fuel surcharge revenue and lower weight per shipment. However, revenue per 100 weight increased 2%, a testament to our focus on revenue quality and the industry's continued pricing discipline. As we look ahead, we expect FY '20 '20 '5 revenue to be flat to down slightly versus last year. For the fourth quarter, this implies essentially flat revenue at Federal Express, driven primarily by continued volume growth and deferred service offerings, partially offset by one fewer operating day.

At Freight, we expect a continued revenue decline on a year over year basis in Q4, but also expect the Q4 decline to moderate sequentially. Last quarter, I shared with you the framework for our commercial priorities. B2B growth, including healthcare and automotive, a focus on U. S. Domestic e commerce, profitable growth in global airfreight segment, and of course, we want to accelerate profitable growth in Europe.

I'm very pleased to report that we've had progress across all of our priorities. A few highlights from the quarter. We continue to build unique capabilities for our high margin healthcare vertical. For example, we are taking our established returns platform and using that technology for customers that require recurring collaborative shipments with their business partners or vendors. This has varied use cases across industries, including lab shipments between medical providers.

This process enables a simpler shipping process with more visibility, allowing shipment recipients to staff more appropriately and efficiently. Due to the hard work of our team and our compelling healthcare value proposition, we are onboarding nearly $400,000,000 in new annualized healthcare revenue over the next ninety days. Our advanced capabilities helped attract this new business with three quarters of this business tied to bundled customers who are using the FedEx Surround suite. As a result of these wins, we will exit FY 2025 with approximately $9,000,000,000 in healthcare revenue. Additionally, we further expanded FedEx Surround monitoring and intervention.

And now we offer this solution in over 40 countries. Surround's real time AI powered dashboard gives customers enhanced visibility and control over their shipments, which is especially helpful for customers transporting high value or sensitive goods. With 90% of the market's incremental parcel growth expected to come from e commerce, we continue to refine how we profitably serve this market. Based on demand from our largest customers, we have expanded our Sunday residential coverage to nearly two thirds of The U. S.

Population, up from 50% previously. We have already received incremental commitments of more than 500,000 packages per week from existing customers tied to our Sunday delivery capabilities. This change is enabling us to better utilize our existing assets without adding capacity while meeting the needs of our customers. As a result, we expect this incremental coverage to be profit accretive in Q1 of fiscal year twenty twenty six. We will continue to lean into these key strategies as we target profitable growth in the quarters and years ahead.

And with that, I will turn it over to John.

Thanks, Brie, and good afternoon. Our Q3 performance demonstrates our team's strong commercial execution and our rigor in reducing structural costs to drive. On a year over year basis, we grew adjusted operating profit in Q3 by nearly $160,000,000 or 12% despite headwinds from the Postal Service contract expiration, pressures at FedEx Freight and the severe weather events Raj mentioned. As a result, we delivered adjusted EPS growth of 17%. Now walking through the dynamics of the quarter.

Commercial execution at Federal Express focused on the key priorities Brie mentioned and drove a $5.00 $9,000,000 increase in revenue, which resulted in strong flow through to the bottom line. Drive benefits of $600,000,000 continued to reduce our structural costs and supported our earnings growth. With respect to headwinds, Q3 was the first full quarter following the Postal Service contract expiration and as expected, this resulted in $180,000,000 headwind to adjusted operating income. This headwind will ease in Q4 as we continue to reduce costs associated with the contract. We also experienced severe weather headwinds of approximately $70,000,000 relative to last year.

And finally, soft U. S. Industrial economy continued to weigh on B2B demand and FedEx freight's weight per shipment. Now to providing more segment detail for Q3 on a year over year basis. At Federal Express, we grew adjusted operating income by $2.00 $6,000,000 driven by DRIVE savings, base yield improvement and increased U.

S. And international export demand. Our progress in Europe also contributed to adjusted operating income improvement in the quarter and I'm confident we'll continue this positive momentum in Q4 and FY 2026. At FedEx Freight, operating profit declined $80,000,000 year over year as lower fuel surcharges and the soft U. S.

Industrial economy continued to challenge the business. Base yield improvement as well as effective cost and headcount management partially offset these headwinds at freight. Moving to drive, as we committed, we continued to sequentially improve our drive savings and we expect even further savings in Q4. We delivered $600,000,000 of savings in Q3 compared to $390,000,000 in Q1 and May in Q2. Air and international savings of $245,000,000 benefited the quarter as we continue to optimize commercial line haul against aircraft capacity in our network.

Additionally, we optimized route productivity and pickup and delivery operations in our European network. We achieved G and A savings of $220,000,000 as we continue to rationalize vendor spend and increase back office efficiency. And at Surface, we achieved drive savings of $135,000,000 and all of these elements contributed to the total drive savings of $600,000,000 in the quarter. Turning to our outlook, I'm encouraged by both our sequential earnings momentum and year over year growth. That said, given the ongoing challenges in the global industrial economy, inflationary pressures and the uncertainty surrounding global trade policies, we now project FY 'twenty five adjusted earnings per share to be in the range of $18 to $18.6 compared to our $19 to $20 prior range.

For Q4, we expect continued execution of our revenue quality strategy and further acceleration in drive savings to support sequential and year over year growth in adjusted operating income. We'll exit the fourth quarter by achieving our FY 2025 goal at an annualized dry run rate north of $2,200,000,000 We expect headwinds from FedEx Freight to continue in Q4, but forecast some moderation on a year over year basis. Turning now to our latest full year adjusted operating income bridge. This shows the year over year operating profit elements embedded in our revised outlook. This bridge now reflects adjusted operating profit of $6,200,000,000 equivalent to $18.3 of adjusted EPS.

For revenue net of cost, we now expect a $1,100,000,000 headwind, which is $400,000,000 above our prior forecast. This is a result of revised second half assumptions for revenue and inflation. We now project a $400,000,000 headwind from international export yield pressure. The 100,000,000 increase is a result of base yield pressure, particularly in international economy and greater than previously expected demand for our lower yielding deferred service offerings. We still expect a $300,000,000 headwind from two fewer operating days in Q1 and Q4.

And lastly, we now anticipate a $400,000,000 impact from the expiration of the U. S. Postal Service contract, which is an improvement of $100,000,000 from our prior guidance due to our ability to swiftly eliminate contract related costs. As I mentioned, we also expect to see our 2,200,000,000 in expected drive savings for FY 'twenty five, which is offsetting these headwinds. At the midpoint of our revised FY 'twenty five outlook, we're now assuming 3% adjusted EPS growth on flat to slightly down revenue year over year.

Overall, our revenue in Q3 and expectation for Q4 are softer than previously anticipated with weakness coming primarily from B2B and priority service. This further pressures our bottom line. In addition, inflationary pressures on our cost base are expected to be higher than planned, further reducing our full year outlook. Moving to capital allocation, we continue to significantly reduce capital intensity while returning capital to shareholders. We completed approximately $500,000,000 in share repurchases in Q3, bringing the year to date number to $2,500,000,000 our target for the full year.

And including our dividend, we're on track to return 3,800,000,000 to shareholders in FY 'twenty five. In Q3, capital expenditures were $997,000,000 and our planned FY 'twenty five CapEx is now down to $4,900,000,000 a $300,000,000 decline compared to last year's $5,200,000,000 supporting strong free cash flow and shareholder returns. From a fleet standpoint, we recently reached agreements to purchase eight new Boeing seven seventy seven freighter aircraft and two used seven seventy seven freighters, which will be phased in during calendar years 'twenty six and 'twenty seven. These modern and fuel efficient aircraft were purchased at attractive prices and will help us manage our fleet for the long term while still upholding our FY 'twenty six commitment to approximately $1,000,000,000 of aircraft CapEx. Given that these new planes are highly efficient and will retire our older more maintenance intensive fleet over time, I'm confident that aircraft CapEx in the immediate years beyond FY 'twenty six will remain in the area of $1,000,000,000 We've continued to manage and rationalize the size of our jet fleet, including retiring some of our older aircraft over the last several years.

This is consistent with our go forward strategy to prioritize revenue quality and grow in the premium segments of the market. We've retired 20 MB-11s over the past three years and now expect to retire the remainder of the MB-eleven fleet by the end of FY32 versus our prior FY28 target. This extension of some of these aircraft will help us ensure network flexibility while minimizing aircraft CapEx. In December, we shared our plans to fully separate FedEx Freight. Since our December announcement, we've set up a separation management office and established a cross functional team to ensure a smooth transition, and we're making progress on all fronts.

FedEx (FDX) Q3 2025 Earnings Call Transcript

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