FedEx Corp. is sharpening its focus on digital commerce and data-driven logistics, telling investors  that expanding its artificial intelligence (AI), automation and network integration will fuel revenue growth to about $98 billion and lift operating income to roughly $8 billion by fiscal 2029.

At its 2026 Investor Day on Feb. 12, the transportation and ecommerce services provider said it expects revenue to grow at a compound annual rate of about 4% through fiscal 2029. It projects operating income to reach approximately $8 billion, implying a compound annual growth rate of about 17%.

CEO Raj Subramaniam said the company is building “the most flexible, efficient, and intelligent network in history,” anchored by digital insight layered on top of its global physical infrastructure.

FedEx said it will prioritize higher-margin segments where customers demand speed and visibility, including healthcare, automotive, aerospace, data centers and the premium tier of ecommerce. The strategy reflects an effort to capture more profitable business-to-business and cross-border digital commerce flows rather than competing primarily on price in commoditized parcel lanes.

What FedEx shared during its 2026 Investor Day

For its U.S. domestic segment, FedEx is targeting a 10% operating margin by 2029. It expects international operations to reach an 8% operating margin as it improves performance in Europe and growth in premium cross-border and intercontinental routes.

Executives emphasized that digital capabilities will be central to margin expansion. FedEx said it processes roughly two petabytes of data daily. It plans to use that data more aggressively in demand forecasting, route optimization, aircraft allocation and customer visibility tools.

The company is continuing its multiyear “Network 2.0” initiative, which integrates air and ground operations to reduce duplication and improve asset utilization. It is also advancing its “Tricolor” air network strategy to better align aircraft capacity with service levels and shipment profiles.

FedEx said it expects automation and AI embedded in sorting hubs and planning systems to reduce structural costs. At the same time, it sees those factors improving delivery performance for ecommerce customers.

FedEx outlook through 2026

FedEx projects adjusted free cash flow of about $6 billion by fiscal 2029. It expects capital expenditures to fall to roughly 4% of revenue. Furthermore, it expects aircraft-related capital spending remaining at or below $1 billion annually through 2029.

For fiscal 2026, FedEx reaffirmed a revenue midpoint of $93.5 billion. That includes FedEx Freight, and $85 billion excluding that segment.

The planned spin-off of FedEx Freight remains on track for June 1, 2026. On Feb. 5, FedEx Freight completed the issuance of $3.7 billion in senior notes and intends to distribute the net proceeds to FedEx Corp. as part of the separation.

Separately, FedEx said it joined a consortium with Advent International, A&R Investments and PPF Group in a recommended all-cash offer to take Polish parcel locker operator InPost private at €15.60 per share, or approximately $16.85 per share at current exchange rates. It expects the transaction to close in the second half of 2026, subject to regulatory and shareholder approvals.

FedEx said it expects its minority investment to add to earnings in the first year after closing. The company’s 2029 financial targets do not include any contribution from the InPost transaction.

With annual revenue of about $90 billion and more than 500,000 employees worldwide, FedEx is positioning its next phase of growth around higher-value digital commerce shipments, tighter cost controls and deeper integration of data and automation into its global logistics network. The company reiterated its goal of achieving carbon-neutral operations by 2040.

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