Longleaf Partners Fund highlighted FedEx Corporation as a leading contributor in its second-quarter 2026 investor letter, stating that robust results support the view that FedEx is becoming a more focused, higher-return business. The core Federal Express segment grew revenue 14% and adjusted operating income 13% in the fiscal fourth quarter, helped by strong pricing, better mix, and growth in higher-value B2B end markets. Full-year capital spending was only 4% of revenue, the lowest level in FedEx's history, underscoring improved free cash flow conversion. During the quarter, FedEx completed the spin-off of FedEx Freight, simplifying the remaining business. Longleaf Partners believes the market is not fully recognizing the free cash flow potential of the core parcel network or the value of FedEx's retained Freight stake.
FedEx CorporationFedEx reported strong fiscal Q4 results with revenue and operating income growth, low capex, and completed spin-off of FedEx Freight, indicating improved focus and free cash flow.