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BUSINESS SEGMENTS AND DISAGGREGATED REVENUE
 12 Months Ended
May 31, 2026
Segment Reporting [Abstract]  
BUSINESS SEGMENTS AND DISAGGREGATED REVENUE BUSINESS SEGMENTS AND DISAGGREGATED REVENUE
As a result of the Spin-Off, effective June 1, 2026, FedEx will no longer consolidate FedEx Freight, and FedEx Freight is no longer a reportable segment. Following the Spin-Off, we realigned our internal reporting and management structure, resulting in the identification of two new reportable segments: Express U.S. Domestic and Express International. These changes had no impact on our consolidated results of operations or financial position. Refer to Note 20 for additional information.
Prior to the Spin-Off, Federal Express and FedEx Freight represented our major service lines and constituted our reportable segments. Our Chief Executive Officer is our chief operating decision maker (“CODM”). The CODM is responsible for our operating strategy, growth, and profitability and reviews financial information for our two reportable segments. The CODM uses operating income as the primary measure of segment performance because it reflects the underlying business performance and provides the CODM with a basis for making resource allocation decisions. Operating income is defined as income before other income (expense), interest expense and income tax expense. Our CODM also utilizes operating income in the annual budget and monthly forecasting process and considers forecast-to-actual variances on a monthly basis when making resource allocation decisions. Our CODM regularly reviews significant expense details, which include salaries and employee benefits, purchased transportation, rentals and landing fees, depreciation and amortization, fuel, maintenance and repairs, separation and other costs, business optimization costs, and other operating expenses. These expense categories are included within operating expenses in the accompanying consolidated statements of income and are used by the CODM in assessing performance and allocating resources.

The Federal Express segment operates combined sales, marketing, administrative, and information-technology functions in shared service operations for U.S. customers of our major business units and certain back-office support to FedEx Freight and our other operating segments which allows us to obtain synergies from the combination of these functions. We allocate the net operating costs of these services to reflect the full cost of operating our businesses in the results of those segments. We review and evaluate the performance of FedEx Freight and our other operating segments based on operating income inclusive of these allocations.
Operating expenses for our FedEx Freight segment included allocations of these services from the Federal Express segment. These allocations also included charges and credits for administrative services provided between operating companies. The allocations of net operating costs are based on metrics such as relative revenue or estimated services provided. We believe these allocations approximated the net cost of providing these functions. Our allocation methodologies are refined periodically, as necessary, to reflect changes in our businesses.
Corporate, Other, and Eliminations
Corporate, other, and eliminations includes corporate headquarters costs for executive officers and certain legal and finance functions, certain other costs and credits not attributed to our core business, and certain costs associated with developing integrated business solutions through our FedEx Dataworks, Inc. (“FedEx Dataworks”) operating segment. FedEx Dataworks is focused on creating new digital revenue streams using proven FedEx intelligence to digitize supply chains and create new opportunities for our customers and team members.
Also included in Corporate, other, and eliminations are the FedEx Office and Print Services, Inc. (“FedEx Office”) operating segment, which provides an array of document and business services and retail access to our customers for our package transportation businesses, and the FedEx Logistics operating segment, which provides integrated supply chain management solutions, specialty transportation, customs brokerage, and global ocean and air freight forwarding. The results of Corporate, other, and eliminations are not allocated to the other business segments.
Certain FedEx operating companies provide transportation and related services for other FedEx companies outside their reportable segment in order to optimize our resources. Billings for such services are based on negotiated rates and are reflected as revenue of the billing segment. These rates are adjusted from time to time based on market conditions. Such intersegment revenue and expenses are eliminated in our consolidated results and are not separately identified in the following segment information because the amounts are not material.
The following table presents segment information for the years ended May 31, 2026, May 31, 2025, and May 31, 2024 (in millions):
202620252024
Federal Express segment:
Revenue$82,273 $75,304 $74,663 
Operating expenses:
Salaries and employee benefits27,465 25,091 24,606 
Purchased transportation21,812 19,974 19,330 
Rentals and landing fees4,153 3,939 3,863 
Depreciation and amortization3,799 3,722 3,754 
Fuel3,565 3,316 4,137 
Maintenance and repairs2,906 2,799 2,848 
Asset impairment charges23 21 157 
Separation and other costs92 — — 
Business optimization costs303 384 251 
Intercompany allocations (charges)(853)(791)(684)
Other13,096 11,964 11,582 
Total operating expenses76,361 70,419 69,844 
Operating income$5,912 $4,885 $4,819 
202620252024
FedEx Freight segment:
Revenue$8,795 $8,892 $9,429 
Operating expenses:
Salaries and employee benefits3,991 3,865 3,923 
Purchased transportation807 807 877 
Rentals301 287 280 
Depreciation and amortization450 416 404 
Fuel485 457 571 
Maintenance and repairs314 332 330 
Separation and other costs492 — — 
Intercompany allocations (charges)561 573 543 
Other778 666 680 
Total operating expenses8,179 7,403 7,608 
Operating income$616 $1,489 $1,821 
202620252024
Reconciliation of segment revenue:
Total Federal Express and FedEx Freight revenue$91,068 $84,196 $84,092 
Other revenues(1)
3,652 3,730 3,601 
Total consolidated revenue$94,720 $87,926 $87,693 
Reconciliation of segment operating income to income before income taxes:
Total Federal Express and FedEx Freight operating income$6,528 $6,374 $6,640 
Other operating loss(1)
(1,065)(1,157)(1,081)
Operating income5,463 5,217 5,559 
Interest, net(533)(426)(375)
Other retirement plans, net885 713 722 
Other, net(2)
(22)(63)(70)
Total other (expense) income330 224 277 
Income before income taxes$5,793 $5,441 $5,836 
(1)Revenue and operating loss from segments below the quantitative thresholds are attributable to operating segments contained within “Corporate, other, and eliminations.” These operating segments include FedEx Corporate, FedEx Office, FedEx Logistics, and FedEx Dataworks.
(2)Includes costs related to the Spin-Off of $6 million and $18 million for the years ended May 31, 2026 and 2025, respectively, included in “Corporate, other, and eliminations.”
The following table provides a reconciliation of segment assets to consolidated financial statement totals (in millions) for the years as of May 31:
Federal
Express
Segment		FedEx
Freight
Segment		Corporate, other, and eliminationsConsolidated
Total
Segment assets
2026(1)
$84,047 $6,873 $8,017 $98,937 
202574,154 12,899 574 87,627 
202473,259 11,615 2,133 87,007 
(1) In connection with the Spin-Off, FedEx Freight settled an intercompany balance of $7.9 billion with Federal Express, impacting segment assets for both segments. In addition, segment assets for “Corporate, other, and eliminations” reflects the $4.1 billion dividend from FedEx Freight Holding to FedEx, funded through the FedEx Freight Notes and borrowings under the FedEx Freight Term Loan Facility, received as consideration for FedEx’s contribution of assets to FedEx Freight Holding in connection with the Spin-Off, as well as an increase in additional $2.5 billion increase in cash and cash equivalents driven by overall growth in the business, increases in pension funded status and other changes in working capital accounts.
The following table provides a reconciliation of reportable segment capital expenditures to consolidated totals for the years ended May 31 (in millions):
Federal
Express
Segment		FedEx
Freight
Segment		OtherConsolidated
Total
2026$3,349 $379 $81 $3,809 
20253,505 437 113 4,055 
20244,591 461 124 5,176 
The following table presents revenue by service type and geographic information for the years ended or as of May 31 (in millions):
202620252024
REVENUE BY SERVICE TYPE
Federal Express segment:
Package:
U.S. priority revenue$11,603 $10,520 $10,543 
U.S. deferred revenue5,700 5,007 4,926 
U.S. ground revenue37,335 33,887 32,981 
Total U.S. domestic package revenue54,638 49,414 48,450 
International priority9,639 8,737 9,454 
International economy5,925 5,861 4,653 
Total international export package revenue15,564 14,598 14,107 
International domestic(1)
4,725 4,495 4,659 
Total package revenue74,927 68,507 67,216 
Freight:
U.S.1,252 1,536 2,391 
International priority2,560 2,320 2,205 
International economy2,244 1,975 1,874 
Total freight revenue6,056 5,831 6,470 
Other1,290 966 977 
Total Federal Express segment82,273 75,304 74,663 
FedEx Freight segment8,795 8,892 9,429 
Other and eliminations(2)
3,652 3,730 3,601 
$94,720 $87,926 $87,693 
GEOGRAPHICAL INFORMATION(3)
Revenue:
U.S.$67,944 $62,916 $63,531 
International:
Federal Express segment25,480 23,720 23,136 
FedEx Freight segment243 247 266 
Other1,053 1,043 760 
Total international revenue26,776 25,010 24,162 
$94,720 $87,926 $87,693 
Noncurrent assets:
U.S.$58,134 $57,040 $56,822 
International12,900 12,201 11,978 
$71,034 $69,241 $68,800 
(1)International domestic revenue relates to our intra-country operations.
(2)Includes the FedEx Office, FedEx Logistics, and FedEx Dataworks operating segments.
(3)International revenue includes shipments that either originate in or are destined to locations outside the United States, which could include U.S. payors. Noncurrent assets include property and equipment, operating lease right-of-use assets, goodwill, and other long-term assets. Our flight equipment is registered in the U.S. and is included as U.S. assets; however, many of our aircraft operate internationally.