FEDEX CORP

FedEx Corporation

Overview

• FedEx is a Delaware-incorporated parent holding company that provides strategic direction to a global portfolio of transportation, e-commerce, and business services. It operates an integrated, flexible, intelligent global network under the FedEx brand.
• In 2026, FedEx completed a major corporate change:
  • Spin-off of FedEx Freight (less-than-truckload freight) completed June 1, 2026. Stockholders received one share of FedEx Freight for every two FedEx shares. FedEx retained 19.9% of FedEx Freight and expects to divest that stake within 24 months. A pro rata dividend of 80.1% of FedEx Freight Holding was issued on May 13, 2026.
  • After the spin-off, reporting segments were realigned into two primary Express segments: Express U.S. Domestic and Express International. FedEx Logistics was moved to Express International. A transitional reporting period (June–December 2026) will be disclosed in a Transition Report on Form 10-K.
• Strategy and transformation:
  • One FedEx: consolidation into a single, integrated network with a modern technology stack to improve efficiency, profitability, and customer experience.
  • Network 2.0: multi-year plan to modernize the U.S. and Canada surface network, including sorting facilities, route redesign, and end-to-end network optimization. U.S. implementation is expected to complete by the end of 2027; Canada is fully implemented.
  • International air network redesign (Tricolor) to optimize asset utilization and emphasize premium global freight.
  • Digital transformation and AI: creation of a digital backbone with AI-enabled workflows for faster responses, fewer exceptions, and lower cost-to-serve; FedEx Dataworks serves as the data and AI engine.

Environmental and sustainability focus

• Target to achieve carbon-neutral operations by 2040 through fleet modernization, sustainable aviation fuel (SAF) usage, fuel conservation, and renewable energy at facilities.
• Initiatives include SAF sourcing, retirement of older aircraft, EV pilots and vehicle electrification, and a Sustainability Insights tool to help customers track emissions.

Two primary reportable segments (as of June 1, 2026)

Express U.S. Domestic

• Provides domestic shipping services for packages and freight.
• Service options include three overnight services (First Overnight, Priority Overnight, Standard Overnight), three deferred options (2Day, 2Day AM, Express Saver), SameDay service, and high-volume ground/delivery networks (FedEx Ground and FedEx Home Delivery).
• Network uses Memphis and Indianapolis hubs, regional air hubs (Fort Worth, Newark, Oakland), and major sorting facilities to support a national surface network.
• Emphasis on Network 2.0 modernization and automation across hundreds of U.S. locations; surface operations use a mix of employee couriers and service providers.

Express International

• Provides international express and freight services connecting more than 220 countries and territories.
• Package services include multiple time-definite options (International Economy, International First, International Priority, International Priority Express) and regional domestic/international services in selected non-U.S. countries.
• FedEx Logistics offers customs brokerage, global ocean/air freight forwarding, managed transportation, and trade solutions through FedEx Trade Solutions.
• FedEx Logistics uses the FedEx network and third-party providers to deliver integrated logistics services.
• FedEx International Connect Plus supports cross-border e-commerce delivery.

Corporate, Other, and Eliminations

• Post-spin Corporate/Other includes FedEx Dataworks (data/AI/enterprise platform), FedEx Office (retail print and shipping services), and FedEx Supply Chain (supply chain solutions).
• FedEx Freight and related LTL operations are now part of the FedEx Freight Holding entity following the spin-off, with cross-licensing and transitional services agreements in place to support separation.

Key services, technology, and customer touchpoints

Customer technology and digital solutions

• Tracking and visibility tools: FedEx Tracking, FedEx Delivery Manager, SenseAware (real-time visibility with telematics sensors), FedEx Surround, and Picture Proof of Delivery.
• Shipping and returns: FedEx Mobile app, FedEx Ship Manager software, FedEx Returns Technology, FedEx Easy Returns, and FedEx Returns+.
• Sustainability Insights (FSI) provides estimated CO2e emissions data for shipments to customers and suppliers.
• AI initiatives include AI-powered assistants, AI-enabled workflows, and an enterprise AI policy supported by an AI Council; AI capabilities are expanding across platforms.
• Partnerships announced in 2026 with ServiceNow and Dun & Bradstreet to enhance supply chain visibility and intelligence.

Retail and access network

• FedEx Office: roughly 2,000 customer-facing stores, FedEx Office locations inside Walmart, and about 12,000 FedEx Office employees offering printing and packaging services.
• Drop-off network: about 84,000 drop-off locations in the U.S., with Walgreens and Dollar General participating in FedEx OnSite and Office Depot/OfficeMax partnerships of approximately 800 locations.
• International drop-off footprint: roughly 37,000 drop-off locations.

Network and operational transformation

• Network 2.0 continues to modernize sorting facilities, reduce route redundancies, and improve capacity management across the U.S. and Canada.
• Tricolor international network redesign is focused on optimizing aircraft deployment for higher-value international freight.

Sustainability initiatives

• Climate goals target carbon-neutral operations by 2040, with measures including fleet modernization and SAF adoption.
• Since 2005, FedEx reports a 32% reduction in aircraft emissions intensity.
• SAF commitments include multi-site offtake agreements targeting more than 16.5 million gallons of blended SAF online at several U.S. airports in 2025.
• Vehicle electrification includes substantial EV deployment in FedEx Ground and pickup/delivery fleets, heavy-duty electrification pilots, and alternative fuel pilots (renewable diesel, HVO).
• Renewable energy efforts include on-site and off-site solar and renewable energy procurement, with a goal to source all electricity from renewable sources by 2040; 96.7 GWh of renewable energy was sourced in 2025 across 37 facilities.

Scale and operations (as of May 31, 2026)

• Employees:

  • FedEx overall: approximately 300,000 permanent full-time and 230,000 permanent part-time employees; about 5,300 service providers.
  • FedEx Express: approximately 233,000 permanent full-time and 219,000 permanent part-time employees.
  • FedEx Office: about 12,000 employees across ~2,000 customer-facing stores.
  • FedEx Logistics: roughly 100 offices/facilities in 34 countries and territories.
  • FedEx Supply Chain: about 70 facilities.
  • FedEx Dataworks: about 200 employees.
  • In 2026, FedEx globally hired about 469,000 full- and part-time team members.

• Fleet and facilities:

  • Aircraft: a total fleet of 700 in service, consisting of Boeing, Airbus, ATR, and smaller aircraft; 10 aircraft were retired in 2026 as part of modernization.
  • Vehicles: more than 180,000 motorized vehicles within the FedEx Express network; approximately 82,000 motorized vehicles operated directly by FedEx Express, with additional vehicles used by service providers.
  • Major sorting and handling facilities include Memphis (core hub), Indianapolis, Miami, Fort Worth, Newark, Oakland, Chicago, Los Angeles, Atlanta, Anchorage, Paris, Cologne, Guangzhou, Osaka, Liège, and other international sites.

• Drop-off and retail footprint:

  • FedEx Drop Boxes: ~84,000 in the U.S. and ~37,000 internationally.
  • Staffed drop-off network: ~25,000 staffed locations including FedEx Office stores and FedEx Authorized ShipCenters.
  • Retail partnerships: Walgreens, Dollar General (FedEx OnSite), and Office Depot/OfficeMax.

Spin-off and related arrangements

• The FedEx Freight spin-off was completed June 1, 2026. FedEx Freight Holding received a pro rata dividend of 80.1% and FedEx retained 19.9% of the outstanding shares; the retained stake is expected to be divested within 24 months.
• Cross-licensing and transitional services agreements are in place between FedEx and FedEx Freight to support the separation.

Executive leadership (as of July 20, 2026)

• R. Brad Martin — Executive Chairman of FedEx (Executive Chairman since Sept 2025; Chairman of the FedEx Board since June 2025). Also chairs the FedEx Freight Holding Company board. Age 74.
• Frederick W. Smith — President and Chief Executive Officer of FedEx (CEO since June 2022; assumed additional roles in 2024).
• Rajesh Subramaniam — President and Chief Executive Officer of Federal Express; prior executive roles in marketing and communications; director of The Procter & Gamble Company. Age 60.
• Gina F. Adams — Executive Vice President, General Counsel and Secretary; former U.S. DOT official; director at Entergy Corporation. Age 67.
• Brie A. Carere — Executive Vice President, Chief Customer Officer and Corporate Communications; prior roles in marketing and customer experience; director at ZipRecruiter. Age 48.
• Kawal Preet — Executive Vice President, Planning, Engineering, and Transformation; former Regional President, Asia Pacific. Age 51.
• Scott Ray — Chief Operating Officer, U.S. and Canada; former President, FedEx Ground. Age 57.
• Claude F. Russ — Enterprise Vice President, Finance and Interim Chief Financial Officer and Interim Chief Accounting Officer (as of June 2026); former CFO/finance roles within FedEx. Age 50.
• Richard W. Smith — Executive Vice President, Global Support; Regional President, The Americas; former CEO of FedEx Logistics. Age 48.
• Vishal Talwar — Executive Vice President, Chief Digital and Information Officer (since Aug 2025); formerly at Accenture; director at Fastenal Company. Age 49.