FedEx Corp. revenue reached its highest point in 15 quarters in its fiscal Q2 2026, which ended Nov. 30, 2025.
Through the first half of its fiscal 2026, FedEx revenue has reached $45.7 billion. That’s its second-highest since its fiscal 2020, which began in 2019. Since then, FedEx revenue has only been higher through the first half in its fiscal 2023, when it reached $46 billion.
CEO Rajesh Subramaniam told investors on FedEx’s quarterly earnings call that the carrier achieved that, in part, because it “won new business in high-value verticals.” That included driving business-to-business (B2B) growth in health care.
In addition, he said the company is “on track to spin off” FedEx Freight as a separately listed public company on June 1, 2026. FedEx appointed Marshall Witt in October as chief financial officer of FedEx Freight. Witt had been CFO of TD SYNNEX for 12 years and had worked for FedEx Freight for 15 years prior to that. Subramaniam said FedEx Freight’s entire executive leadership team is now in place.
Chief customer officer Brie Carere said that the day after FedEx’s quarter ended, it “successfully” picked up 25 million packages on Cyber Monday. That required “extensive collaboration and agility,” she added.
Close to half of the Top 2000 retailers in North America use FedEx as a shipping carrier, according to Digital Commerce 360 data. The Top 2000 refers to North America’s largest online retailers by annual ecommerce sales. In 2024, 939 online retailers in the Top 2000 Database used FedEx as a shipping carrier.
Grounding of FedEx’s Boeing MD-11 aircraft
Subramaniam cited multiple challenges in the quarter, including grounding its fleet of Boeing MD-11 aircraft. A United Parcel Service (UPS) MD-11 crashed in Louisville, Kentucky, in early November, killing 14 people and injuring 23. That prompted Boeing to recommend grounding part of that fleet of aircraft as it analyzed what went wrong.
FedEx has 34 of its own MD-11 aircraft. It operated 25 of them during the groundings, Subramaniam told investors. He said the company focused on safety when grounding part of the fleet, making sure it could have its panes inspected.
Subramaniam said FedEx’s network-planning team “immediately implemented contingencies” to prioritize commitments to customers while stabilizing its network. The carrier revised its November schedule to condense its planning process into three days, he said. As the MD-11 remained on the ground, it trucked more volume in the U.S. rather than flying. Most of its MD-11 flights were U.S. domestic, so the carrier shifted volume to other types of aircraft within its owned fleet, he said.
FedEx also worked with third-parties to increase its capacities amid maintenance for its remaining fleet, though he did not specify the third parties.
He also cited “nationwide air traffic constraints, weakness in the industrial economy and, of course, the impact of global trade policy changes” as challenges in the quarter.
FedEx revenue in its fiscal Q2 2026
In its fiscal Q2 2026, FedEx revenue reached $23.5 billion. That’s 6.8% growth from $22 billion the prior year.
Additionally, it’s the fifth time since its fiscal Q1 2020 that FedEx revenue reached or exceeded $23 billion.
It also increased its net income in Q2 to about $960 million, from about $740 million the previous year.
Subramaniam attributed growth largely to “yield and volume strength” in its U.S. domestic package services. He also said nearly half of FedEx revenue growth in Q2 came from B2B services. He called them “an important enabler of increased profitability.”
In line with ongoing less-than-truckload (LTL) industry trends, he said, FedEx’s faced freight challenges. That included lower volumes, but higher weight and revenue per shipment helped to partially offset the volumes, according to Subramaniam.
“We are demonstrating our ability to execute well in any environment, reflecting the progress of our network, organizational and digital transformation efforts,” Subramaniam said.
FedEx Freight revenue declined 2% in Q2 as the carrier had fewer daily shipments, on average. At the same time, it grew its average daily domestic volume by 6%.
Carere said that, “as expected, international export volumes declined, driven again by lower volumes on the China to U.S. lane.” Still, FedEx is growing its revenue on U.S. international outbound shipments. International export package yield increased 3% in the quarter, according to Cerere. She credited changes to improve revenue, higher weight per shipment tied to the de minimis change and favorable currency exchange.
“We remain focused on driving growth in international and B2B segments, which is helping to offset the headwinds created by global trade policy changes,” Subramaniam said.
Percentage changes may not align exactly with dollar figures due to rounding. Check back for more earnings reports. Here’s our previous article on FedEx revenue.
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