FedEx (FDX) Financials

FedEx (NYSE: FDX) has demonstrated a generally stable financial performance over the last four years, supported by steady revenue growth and consistent profitability, albeit with some fluctuations in net income and cash flows that warrant attention.

Revenue and Income Trends:

• Operating revenue has remained relatively stable with a general upward trend from approximately $21.7 billion in Q3 2024 to $22.2 billion in Q3 2025, indicating solid top-line growth.
• Gross profit is consistently strong, averaging around $5.5 to $6.2 billion per quarter from Q3 2023 through Q3 2025, reflecting controlled cost of revenue relative to sales.
• Net income attributable to common shareholders showed growth from about $741 million in Q2 2025 to $909 million in Q3 2025, with EPS rising accordingly from $3.03 to $3.76 diluted, suggesting improving profitability and shareholder value.
• Income tax expenses have fluctuated but remain a stable portion of pre-tax income, reflecting consistent tax management.
• Some quarters, especially Q4 2022, show a notable decline in net income to $558 million, indicating timing or operational pressures that affected profitability.

Operating Expenses and Efficiency:

• Selling, General & Administrative (SG&A) expenses are maintained around $3.1 to $3.5 billion per quarter, reflecting operational discipline relative to revenue growth.
• Depreciation expense remains substantial, around $1 billion quarterly, indicating significant capital investments and potentially impacting operating income.
• Other operating expenses are relatively minor and consistent, not materially impacting operating income volatility.

Cash Flow and Capital Allocation:

• Operating cash flow is strong and growing, with net cash from continuing operating activities increasing from $1.3 billion in Q2 2025 to $2.0 billion in Q3 2025, supporting operational sustainability and growth.
• Investing cash flow is negative, with significant purchases of property, plant, and equipment ranging from $750 to $1.2 billion per quarter, indicating heavy capital expenditure commitments which could pressure free cash flow.
• Financing activities consistently show large repurchases of common equity and substantial dividend payments, cumulatively in the hundreds of millions per quarter, which may constrict liquidity despite enhancing shareholder returns.
• The company manages debt repayments steadily but maintains a high level of long-term debt (around $19.5 billion in Q3 2025), suggesting ongoing leverage that investors should monitor.

Balance Sheet Highlights:

• FedEx holds a strong cash position of about $5.1 billion as of Q3 2025, providing adequate liquidity for operations and strategic initiatives.
• Accounts receivable remain elevated (~$10 billion), common for logistics firms but requiring careful working capital management.
• Total assets are stable at approximately $85 billion, with net property, plant & equipment around $41 billion, highlighting FedEx's significant investment in operational infrastructure.
• Total liabilities have remained steady at about $58 billion, with a stable equity base of $26.7 billion, indicating balanced capital structure but considerable obligations.

Summary: FedEx exhibits solid revenue growth and profitability trends, supported by strong operating cash flows and a significant asset base. The company is investing heavily in capital expenditures while returning capital to shareholders through dividends and share buybacks. While these strategies boost shareholder value, the associated debt levels and capital spending warrant monitoring for liquidity and financial flexibility. Overall, FedEx remains a fundamentally stable company in the logistics and express transportation sector with balanced growth and shareholder return initiatives.