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BUSINESS SEGMENTS AND DISAGGREGATED REVENUE | 6 Months Ended
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Nov. 30, 2025
Segment Reporting [Abstract] |
BUSINESS SEGMENTS AND DISAGGREGATED REVENUE | NOTE 7: BUSINESS SEGMENTS AND DISAGGREGATED REVENUE Federal Express and FedEx Freight represent our major service lines and constitute our reportable segments. Our reportable segments include the following businesses:
Federal Express Segment | Federal Express (express transportation, small-package ground delivery, and freight transportation)
FedEx Freight Segment | FedEx Freight (LTL freight transportation) FedEx Custom Critical, Inc. (time-critical transportation)
References to our transportation segments include, collectively, the Federal Express segment and the FedEx Freight segment. Our Chief Executive Officer is our chief operating decision maker (“CODM”). The CODM is responsible for the company’s 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 processes 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 unaudited condensed 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 include allocations of these services from the Federal Express segment. These allocations also include 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 approximate 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 and other 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 digital solutions to optimize operations, digitize supply chains, and create new opportunities for our customers and team members. Also included in Corporate and other is 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, Inc. (“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 periods ended November 30, 2025 and 2024 (in millions):
| Three Months Ended |  | Six Months Ended
| November 30, 2025 |  | November 30, 2024 |  | November 30, 2025 |  | November 30, 2024
Federal Express segment: |  |  |  |  |  |  |
Revenue | $ | 20,433 |  |  | $ | 18,841 |  |  | $ | 39,549 |  |  | $ | 37,146 |
Operating expenses: |  |  |  |  |  |  |
Salaries and employee benefits | 6,824 |  |  | 6,329 |  |  | 13,340 |  |  | 12,530 |
Purchased transportation | 5,480 |  |  | 5,067 |  |  | 10,553 |  |  | 9,868 |
Rentals and landing fees | 1,028 |  |  | 987 |  |  | 2,041 |  |  | 1,973 |
Depreciation and amortization | 931 |  |  | 918 |  |  | 1,885 |  |  | 1,853 |
Fuel | 779 |  |  | 835 |  |  | 1,539 |  |  | 1,789 |
Maintenance and repairs | 773 |  |  | 715 |  |  | 1,510 |  |  | 1,434 |
Separation and other costs | 18 |  |  | — |  |  | 23 |  |  | — |
Business optimization costs | 7 |  |  | 206 |  |  | 28 |  |  | 249 |
Intercompany charges | (229) |  |  | (205) |  |  | (462) |  |  | (392) |
Other | 3,271 |  |  | 2,937 |  |  | 6,403 |  |  | 5,837 |
Total operating expenses | 18,882 |  |  | 17,789 |  |  | 36,860 |  |  | 35,141 |
Operating income | $ | 1,551 |  |  | $ | 1,052 |  |  | $ | 2,689 |  |  | $ | 2,005 |
| Three Months Ended |  | Six Months Ended
| November 30, 2025 |  | November 30, 2024 |  | November 30, 2025 |  | November 30, 2024
FedEx Freight segment: |  |  |  |  |  |  |
Revenue | $ | 2,139 |  |  | $ | 2,177 |  |  | $ | 4,396 |  |  | $ | 4,506 |
Operating expenses: |  |  |  |  |  |  |
Salaries and employee benefits | 983 |  |  | 976 |  |  | 1,958 |  |  | 1,960 |
Purchased transportation | 197 |  |  | 197 |  |  | 398 |  |  | 400 |
Rentals and landing fees | 76 |  |  | 72 |  |  | 150 |  |  | 143 |
Depreciation and amortization | 113 |  |  | 112 |  |  | 223 |  |  | 222 |
Fuel | 110 |  |  | 111 |  |  | 223 |  |  | 232 |
Maintenance and repairs | 89 |  |  | 88 |  |  | 170 |  |  | 170 |
Separation and other costs | 152 |  |  | — |  |  | 161 |  |  | — |
Intercompany allocations | 153 |  |  | 143 |  |  | 315 |  |  | 291 |
Other | 176 |  |  | 166 |  |  | 348 |  |  | 337 |
Total operating expenses | 2,049 |  |  | 1,865 |  |  | 3,946 |  |  | 3,755 |
Operating income | $ | 90 |  |  | $ | 312 |  |  | $ | 450 |  |  | $ | 751 |
Reconciliation of segment revenue: |  |  |  |  |  |  |
Total Federal Express and FedEx Freight revenue | $ | 22,572 |  |  | $ | 21,018 |  |  | $ | 43,945 |  |  | $ | 41,652 |
Other revenue(1) | 897 |  |  | 949 |  |  | 1,768 |  |  | 1,894 |
Total consolidated revenue | $ | 23,469 |  |  | $ | 21,967 |  |  | $ | 45,713 |  |  | $ | 43,546 |
Reconciliation of segment operating income to income before income taxes: |  |  |  |  |  |  |
Total Federal Express and FedEx Freight operating income | $ | 1,641 |  |  | $ | 1,364 |  |  | $ | 3,139 |  |  | $ | 2,756 |
Other operating loss(1) | (263) |  |  | (312) |  |  | (575) |  |  | (624) |
Operating income | 1,378 |  |  | 1,052 |  |  | 2,564 |  |  | 2,132 |
Other (expense) income: |  |  |  |  |  |  |
Interest, net | (135) |  |  | (102) |  |  | (254) |  |  | (186) |
Other retirement plans, net | 59 |  |  | 50 |  |  | 119 |  |  | 99 |
Other, net(2) | (13) |  |  | (19) |  |  | (6) |  |  | (8) |
Total other (expense) income | (89) |  |  | (71) |  |  | (141) |  |  | (95) |
Income before income taxes | $ | 1,289 |  |  | $ | 981 |  |  | $ | 2,423 |  |  | $ | 2,037 |
(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 planned spin-off of FedEx Freight of $2 million for the six-month period ended November 30, 2025, included in “Corporate, other, and eliminations.” The following table provides a reconciliation of segment assets to our unaudited condensed consolidated financial statement totals as of November 30, 2025 and May 31, 2025 (in millions):
| Federal Express Segment |  | FedEx Freight Segment |  | Corporate, other, and eliminations |  | Consolidated Total
Segment assets |  |  |  |  |  |  |
November 30, 2025 (Unaudited) | $ | 75,048 |  |  | $ | 13,615 |  |  | $ | 518 |  |  | $ | 89,181 |
May 31, 2025 | 74,154 |  |  | 12,899 |  |  | 574 |  |  | 87,627 |
The following table provides a reconciliation of reportable segment capital expenditures to consolidated totals for the six-month periods ended November 30, 2025 and 2024 (in millions):
| Federal Express Segment |  | FedEx Freight Segment |  | Corporate, other, and eliminations |  | Consolidated Total
Capital expenditures |  |  |  |  |  |  |
November 30, 2025 | $ | 1,208 |  |  | $ | 132 |  |  | $ | 40 |  |  | $ | 1,380 |
November 30, 2024 | 1,301 |  |  | 230 |  |  | 54 |  |  | 1,585 |
The following table presents revenue by service type for the periods ended November 30, 2025 and 2024 (in millions):
| Three Months Ended |  | Six Months Ended
| November 30, 2025 |  | November 30, 2024 |  | November 30, 2025 |  | November 30, 2024
Revenue by service type |  |  |  |  |  |  |
Federal Express segment: |  |  |  |  |  |  |
Package: |  |  |  |  |  |  |
U.S. priority | $ | 2,843 |  |  | $ | 2,563 |  |  | $ | 5,610 |  |  | $ | 5,154 |
U.S. deferred | 1,396 |  |  | 1,199 |  |  | 2,669 |  |  | 2,350 |
U.S. ground | 9,173 |  |  | 8,256 |  |  | 17,827 |  |  | 16,312 |
Total U.S. domestic package revenue | 13,412 |  |  | 12,018 |  |  | 26,106 |  |  | 23,816 |
International priority | 2,383 |  |  | 2,231 |  |  | 4,641 |  |  | 4,437 |
International economy | 1,511 |  |  | 1,588 |  |  | 2,865 |  |  | 2,948 |
Total international export package revenue | 3,894 |  |  | 3,819 |  |  | 7,506 |  |  | 7,385 |
International domestic(1) | 1,257 |  |  | 1,190 |  |  | 2,392 |  |  | 2,302 |
Total package revenue | 18,563 |  |  | 17,027 |  |  | 36,004 |  |  | 33,503 |
Freight: |  |  |  |  |  |  |
U.S. | 304 |  |  | 383 |  |  | 607 |  |  | 952 |
International priority | 617 |  |  | 640 |  |  | 1,212 |  |  | 1,166 |
International economy | 582 |  |  | 529 |  |  | 1,110 |  |  | 992 |
Total freight revenue | 1,503 |  |  | 1,552 |  |  | 2,929 |  |  | 3,110 |
Other | 367 |  |  | 262 |  |  | 616 |  |  | 533 |
Total Federal Express segment | 20,433 |  |  | 18,841 |  |  | 39,549 |  |  | 37,146 |
FedEx Freight segment | 2,139 |  |  | 2,177 |  |  | 4,396 |  |  | 4,506 |
Other and eliminations(2) | 897 |  |  | 949 |  |  | 1,768 |  |  | 1,894 |
| $ | 23,469 |  |  | $ | 21,967 |  |  | $ | 45,713 |  |  | $ | 43,546 |
(1)International domestic revenue relates to our intra-country operations. (2)Includes the FedEx Logistics, FedEx Office, and FedEx Dataworks operating segments. The following table presents geographic revenue information for the periods ended November 30, 2025 and 2024 (in millions):
| Three Months Ended |  | Six Months Ended
| November 30, 2025 |  | November 30, 2024 |  | November 30, 2025 |  | November 30, 2024
Geographical information(1) |  |  |  |  |  |  |
Revenue: |  |  |  |  |  |  |
U.S. | $ | 16,720 |  |  | $ | 15,373 |  |  | $ | 32,695 |  |  | $ | 30,869 |
International: |  |  |  |  |  |  |
Federal Express segment | 6,449 |  |  | 6,262 |  |  | 12,416 |  |  | 11,999 |
FedEx Freight segment | 60 |  |  | 63 |  |  | 122 |  |  | 128 |
Other | 240 |  |  | 269 |  |  | 480 |  |  | 550 |
Total international revenue | 6,749 |  |  | 6,594 |  |  | 13,018 |  |  | 12,677 |
| $ | 23,469 |  |  | $ | 21,967 |  |  | $ | 45,713 |  |  | $ | 43,546 |
(1)International revenue includes shipments that either originate in or are destined to locations outside the United States, which could include U.S. payors. The following table presents geographic noncurrent asset information as of November 30, 2025 and May 31, 2025 (in millions):
Geographical information(1) | November 30, 2025 (unaudited) |  | May 31, 2025
Noncurrent assets: |  |  |
U.S. | $ | 56,409 |  |  | $ | 57,040 |
International | 12,119 |  |  | 12,201 |
| $ | 68,528 |  |  | $ | 69,241 |
(1)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.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-21 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name 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