FedEx grew revenue in fiscal Q4 2026. Business-to-business (B2B) demand drove part of that growth, even as operating margins declined and fuel costs increased.

In its fiscal 2026, which ended May 31, FedEx revenue reached $94.7 billion. That marked a 7.7% year-over-year increase from $87.9 billion. Its operating margin was nearly flat, at 5.8% in fiscal 2026 versus 5.9% the prior year.

CEO Raj Subramaniam said FedEx is building momentum across its global industrial network, making structural improvements to the business and gaining share in “high-value growth markets.” He also called the company’s spin-off of FedEx Freight successful.

Chief customer officer Brie Carere said FedEx grew volume and yield each quarter of fiscal 2026. She attributed that to “a focus on premium B2B verticals and high-value B2C.” In addition, she said FedEx has navigated the implementation of global trade policy changes, “geopolitical unrest in the Middle East” and the IEEPA refund process for tariffs.

FedEx began filing claims with Customs and Border Patrol in April, she said. Beginning in August, she said, FedEx will pass refunds over to customers.

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 2025, 927 online retailers in the Top 2000 Database used FedEx as a shipping carrier.

FedEx revenue in Q4 2026

In its fiscal Q4 2026, FedEx revenue reached $25.0 billion. That marked a 12.6% year-over-year increase. Its operating margin reduced to 6.2% in Q4 2026 from 8.1% the prior year.

“Fuel was not a material driver of our adjusted operating income given the higher expense,” Carere said.

Carere referred to rising oil costs tied to the U.S. and Israel’s war with Iran.

When FedEx’s quarter ended, the price of a barrel of crude oil hovered around $90. It reached a height of about $112 on April 7. For comparison, it was about $66 when the war began at the end of February, according to historical data from Trading Economics. As of June 25, it had fallen to $70, according to Trading Economics data.

FedEx domestic volume in the U.S. increased 3% year over year in Q4. Carere attributed that to the carrier’s ground commercial and home delivery segments. Ground economy declined about 5%, she said. That was part of a “deliberate strategy to focus on parts of the market that value our competitive differentiation,” she said. FedEx expects the declining trend to continue through the remainder of the calendar year, she added.

Meanwhile, U.S. priority volume grew, as did international export package volumes from the country. International export volumes from the U.S. grew for the second straight quarter, increasing 5% year over year, in FedEx’s Q4.

In Europe, Q4 marked the 12th straight quarter of international revenue growth for FedEx. Subramaniam said FedEx believes Europe remains the carrier’s largest international profit improvement opportunity.

Carere said Asia was a key driver for international priority volume. International domestic volume declined 9% in Q4. She said that was part of FedEx’s strategy in Europe to focus on “growing higher-yielding cross-border volume.”

FedEx B2B growth in Q4 2026

Subramaniam said B2B services drove the majority of FedEx Q4 revenue growth.

“We are very encouraged by our progress and retention rates across key high-value B2B and specialized B2C verticals,” Carere said.

Carere said about 40% of FedEx’s U.S. volume with micro and small businesses occurs through retail channels. She added that profitable market share is driving FedEx’s B2B momentum.

“This has been several years in the making where we’ve been repivoting our commercial team to focus on the core B2B and really getting back to our roots as the industrial heartbeat of, quite frankly, the global economy,” Carere said. “In the quarter, B2B was the majority of our revenue growth. And actually, it was the brightest quarter within the fiscal year from a B2B perspective.”

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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