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The UPS of global package and freight shipping.

The Delta Airlines of cargo delivery.

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• Express Shipping: Global, time-definite delivery of urgent parcels and documents.
• Ground Shipping: Cost-effective, day-definite delivery for less urgent, typically heavier packages within specific regions.
• Freight Shipping: Transportation services for large, heavy, or palletized shipments via air, land, or ocean.
• Logistics & Supply Chain Services: Comprehensive solutions including warehousing, fulfillment, transportation management, and e-commerce support.
• Office Services: Retail services offering printing, packing, and convenient shipping options at physical locations.

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FedEx (symbol: FDX) primarily sells its logistics and transportation services to other businesses rather than individuals. Due to the vast and highly diversified nature of its global customer base, FedEx does not have any single customer or small group of customers that constitute "major customers" (typically defined as accounting for 10% or more of total revenue) as reported in its financial filings.

Therefore, it is not possible to list specific names of customer companies as major customers in the traditional financial sense. Instead, FedEx serves millions of businesses across numerous industries that rely on its services for supply chain management, shipping, and distribution. These businesses can be categorized as major users of FedEx's services based on their industries and shipping volumes:

• E-commerce Businesses: Companies ranging from small online retailers to large multinational e-commerce platforms that ship products directly to consumers globally. This category includes a broad spectrum of goods, such as electronics, apparel, home goods, and more.
• Manufacturing and Industrial Companies: Businesses that require reliable shipping for raw materials, components, and finished goods, both within their supply chains and to other businesses (B2B). This encompasses industries like automotive, aerospace, machinery, and technology.
• Healthcare and Pharmaceutical Companies: Organizations that utilize FedEx for the transportation of critical and often time- and temperature-sensitive items, including pharmaceuticals, medical devices, laboratory samples, and biotechnology products.
• Omnichannel Retailers: Companies with both physical store locations and significant online sales operations that depend on FedEx for inventory replenishment, direct-to-consumer fulfillment, and managing product returns.

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Raj Subramaniam, President and Chief Executive Officer

Raj Subramaniam joined FedEx in 1991 and has held numerous leadership positions across the company, including President and CEO of FedEx Express and Chief Operating Officer of FedEx Corporation before becoming President and CEO of FedEx Corporation in 2022.

John Dietrich, Executive Vice President and Chief Financial Officer

John Dietrich joined FedEx in August 2023. Before joining FedEx, he served as President and Chief Executive Officer of Atlas Air Worldwide for over three decades, holding various leadership roles including Executive Vice President and Chief Operating Officer.

Manuel Chadha, Executive Vice President and Chief Human Resources Officer

Manuel "Manny" Chadha is the Executive Vice President and Chief Human Resources Officer for FedEx Corporation.

Stephen G. Davis, Executive Vice President and Chief Customer Officer

Stephen "Steve" G. Davis is Executive Vice President and Chief Customer Officer for FedEx Corporation.

Leslie N. Prager, Senior Vice President, General Counsel and Secretary

Leslie N. Prager is the Senior Vice President, General Counsel and Secretary for FedEx Corporation.

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Here are the key risks to FedEx's business:

1. Macroeconomic Vulnerability and Economic Sensitivity: FedEx's business is highly cyclical and directly impacted by global economic conditions, including trade volumes, consumer spending, and industrial production. Economic slowdowns, recessions, or a weakened industrial economy can significantly reduce shipping volumes and revenue, particularly affecting higher-margin segments like FedEx Freight.
2. Intense Competition: FedEx operates in a fiercely competitive global logistics market. Major rivals such as UPS, DHL, and increasingly, Amazon Logistics, continually innovate and expand their service offerings, which can pressure FedEx's market share, pricing power, and profitability.
3. Operational Execution and Cost Management: The company faces challenges in managing rising operating expenses, including wages, purchased transportation rates, and employee benefits, and aligning its cost structure with fluctuating demand. Furthermore, FedEx is undergoing significant strategic transformations, such as the Network 2.0 initiative to integrate its Express and Ground networks and the planned spin-off of FedEx Freight. These large-scale changes carry inherent execution risks and substantial business optimization costs. The volatility of fuel prices also directly impacts operating costs. The expiration of major contracts, such as the USPS air freight contract in September 2024, also necessitates significant network optimization to offset lost revenue.

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There are two clear emerging threats for FedEx:

• E-commerce giants' expanding in-house logistics networks: Companies like Amazon have heavily invested in and significantly scaled their own logistics and delivery operations, including planes, fulfillment centers, and last-mile delivery fleets (e.g., Amazon Logistics). This directly competes with FedEx for e-commerce package volume, particularly for last-mile delivery, and reduces the reliance of these large shippers on third-party carriers. As these networks mature and expand, they erode FedEx's market share and put downward pressure on pricing, similar to how Netflix's in-house content and distribution threatened Blockbuster.

• The rise of crowdsourced and gig economy last-mile delivery platforms: Companies like DoorDash, Uber Eats, and Instacart, while initially focused on food, are increasingly expanding into general merchandise and local package delivery. These platforms leverage a flexible network of independent contractors, offering potentially faster and more cost-effective solutions for same-day or urgent local deliveries. This new model directly competes with FedEx in the lucrative last-mile delivery segment, especially in urban and suburban areas, by providing alternative, often on-demand, options for businesses and consumers, mirroring Uber's disruption of traditional taxicab services.

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Express Parcel Delivery: The global express delivery market was valued at approximately USD 297.8 billion in 2023 and is projected to reach around USD 447.8 billion by 2032, with a compound annual growth rate (CAGR) of 4.7% from 2024 to 2032.

Ground Parcel Delivery: The global parcel delivery market, which includes ground services, was valued at USD 509.3 billion in 2022 and is expected to grow to USD 813.1 billion by 2030, at a CAGR of 6.2%.

Freight Shipping: The global freight and logistics market was estimated at USD 14.5 trillion in 2023. More specifically, the global freight forwarding market size was valued at USD 187.6 billion in 2023 and is anticipated to reach USD 324.9 billion by 2032, growing at a CAGR of 6.3%.

E-commerce Logistics: The global e-commerce logistics market size was valued at USD 339.4 billion in 2022 and is projected to reach USD 1874.3 billion by 2032, exhibiting a CAGR of 18.7% during the forecast period.

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Here are 3-5 expected drivers of future revenue growth for FedEx (FDX) over the next 2-3 years:

1. Strategic Cost Transformation and Network Optimization (DRIVE Program): While primarily a cost-reduction and efficiency initiative, the successful execution of the DRIVE program is anticipated to enhance FedEx's service quality, optimize its global network, and improve operational efficiencies. These improvements are expected to lead to a more competitive service offering, attract and retain customers, and ultimately support profitable revenue growth by allowing FedEx to operate more effectively in a dynamic market.

2. Continued E-commerce Growth and Last-Mile Delivery Optimization: The ongoing expansion of global e-commerce volumes remains a significant tailwind for FedEx. The company's strategic investments in its FedEx Ground network, automation, and efforts to enhance residential delivery density and efficiency are geared towards capturing a larger share of this growing market and improving the profitability of last-mile deliveries.

3. Yield Management and Pricing Discipline: FedEx's ability to implement strategic price increases, effectively manage surcharges, and optimize its service mix across its Express, Ground, and Freight segments will be critical for driving revenue expansion. Disciplined yield management aims to maximize revenue per package and improve the overall profitability of shipments.

4. Expansion in Specialized Services, Particularly Healthcare Logistics: FedEx is strategically expanding its focus on high-growth, specialized segments, with a particular emphasis on healthcare logistics. This includes investments in temperature-controlled shipping solutions, cold chain capabilities, and time-critical deliveries for the pharmaceutical and medical device industries, which typically command higher value services and offer resilient growth opportunities.

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Share Repurchases

• In April 2022, FedEx announced a new $5.0 billion share repurchase program.
• During fiscal year 2023, the company repurchased approximately $1.5 billion of its common stock.
• FedEx continued share repurchases into fiscal year 2024, having repurchased approximately $1.0 billion of its common stock through the third quarter.

Share Issuance

• Share issuances by FedEx are primarily related to employee stock compensation plans.

Outbound Investments

• In early 2021, FedEx completed the acquisition of ShopRunner to enhance its e-commerce capabilities.

Capital Expenditures

• Capital expenditures were approximately $6.2 billion in fiscal year 2022 and $5.9 billion in fiscal year 2023.
• For fiscal year 2024, FedEx projected capital expenditures to be approximately $5.7 billion.
• The primary focus of these expenditures includes fleet modernization, ground network optimization through automation, and investments in technology.