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FedEx Sets 2029 Targets, Sees Q3 Beat After ‘Exceptional’ Peak

Management points to AI-driven operations plus a Europe push as the path to higher-margin growth.

Overview

  • The company targets roughly $98 billion in fiscal 2029 revenue excluding the freight unit, with $8 billion in adjusted operating income and an 8% operating margin.
  • FedEx said third-quarter adjusted earnings are expected to top Wall Street estimates following an exceptional holiday season, with LSEG consensus at $3.99 per share as of Wednesday.
  • Portfolio moves include a planned June 2026 spin-off of FedEx Freight and an approximately $2.6 billion investment for about a 37% stake in InPost at €15.60 per share to accelerate European growth.
  • Management highlighted premium B2C and specialized B2B verticals plus expanded use of two petabytes of data and advanced AI, including predictive maintenance that is saving about $10 million annually.
  • FedEx plans tight capital discipline with aircraft spending capped at no more than $1 billion through 2029, continued network consolidation, and margin goals of 10% in the U.S. operation and 8% internationally.