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BUSINESS SEGMENTS AND DISAGGREGATED REVENUE
 6 Months Ended
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 EndedSix Months Ended
November 30, 2025November 30, 2024November 30, 2025November 30, 2024
Federal Express segment:
Revenue$20,433 $18,841 $39,549 $37,146 
Operating expenses:
Salaries and employee benefits6,824 6,329 13,340 12,530 
Purchased transportation5,480 5,067 10,553 9,868 
Rentals and landing fees1,028 987 2,041 1,973 
Depreciation and amortization931 918 1,885 1,853 
Fuel779 835 1,539 1,789 
Maintenance and repairs773 715 1,510 1,434 
Separation and other costs18 — 23 — 
Business optimization costs7 206 28 249 
Intercompany charges(229)(205)(462)(392)
Other3,271 2,937 6,403 5,837 
Total operating expenses18,882 17,789 36,860 35,141 
Operating income$1,551 $1,052 $2,689 $2,005 
Three Months EndedSix Months Ended
November 30, 2025November 30, 2024November 30, 2025November 30, 2024
FedEx Freight segment:
Revenue$2,139 $2,177 $4,396 $4,506 
Operating expenses:
Salaries and employee benefits983 976 1,958 1,960 
Purchased transportation197 197 398 400 
Rentals and landing fees76 72 150 143 
Depreciation and amortization113 112 223 222 
Fuel110 111 223 232 
Maintenance and repairs89 88 170 170 
Separation and other costs152 — 161 — 
Intercompany allocations153 143 315 291 
Other176 166 348 337 
Total operating expenses2,049 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 income1,378 1,052 2,564 2,132 
Other (expense) income:
Interest, net(135)(102)(254)(186)
Other retirement plans, net59 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, 202574,154 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, 20241,301 230 54 1,585 
The following table presents revenue by service type for the periods ended November 30, 2025 and 2024 (in millions):
Three Months EndedSix Months Ended
November 30, 2025November 30, 2024November 30, 2025November 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 segment2,139 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 EndedSix Months Ended
November 30, 2025November 30, 2024November 30, 2025November 30, 2024
Geographical information(1)
Revenue:
U.S.$16,720 $15,373 $32,695 $30,869 
International:
Federal Express segment6,449 6,262 12,416 11,999 
FedEx Freight segment60 63 122 128 
Other240 269 480 550 
Total international revenue6,749 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 
International12,119 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.