FedEx Raises Quarterly Dividend by Five Percent
FedEx Corp. (NYSE: FDX), a global leader in logistics, e-commerce, and transportation services, today announced that its Board of Directors has approved a 5% increase in the company’s annual dividend, reflecting the company’s ongoing commitment to returning value to shareholders and maintaining a disciplined capital allocation strategy.
The approved increase raises the annual dividend rate on FedEx Corp. common stock by $0.28 per share, bringing the total annual dividend to $5.80 per share for fiscal year 2026, up from $5.52 in fiscal 2025. In line with this adjustment, the Board also declared a quarterly cash dividend of $1.45 per share, which will be payable on July 8, 2025, to stockholders of record at the close of business on June 23, 2025.
This marks the fifth consecutive year that FedEx has raised its dividend, underscoring its focus on delivering consistent, long-term shareholder returns despite ongoing global economic uncertainties and industry-wide cost pressures.
“Increasing our annual dividend for the fifth consecutive year signals FedEx’s continued commitment to creating value for our stockholders,” said John W. Dietrich, Executive Vice President and Chief Financial Officer of FedEx Corp. “Our capital allocation approach remains disciplined, balancing dividends, share repurchases, and prudent investment in the business.”
A Disciplined Capital Allocation Strategy
FedEx’s capital deployment strategy remains firmly grounded in a balanced approach: reinvesting in its core operations, maintaining a strong balance sheet, and returning capital to shareholders through dividends and share repurchases. The company has made it a priority to reward long-term shareholders while simultaneously building operational efficiency and resilience across its global network.
In recent years, FedEx has intensified efforts to modernize its fleet, optimize its physical footprint, and invest in automation and technology. These initiatives are part of a broader transformation strategy aimed at improving service reliability, lowering structural costs, and enhancing competitiveness, especially in its Ground and Express segments.
Additionally, FedEx has undertaken targeted acquisitions and strategic alliances to support long-term growth in sectors such as e-commerce, healthcare logistics, and international freight forwarding. These moves are intended to strengthen the company’s integrated logistics capabilities and align with evolving customer needs across various industries.
Shareholder-Focused Financial Management
FedEx’s financial stewardship has gained recognition from both institutional investors and credit agencies. The consistent increase in dividend payments signals strong cash flow generation and confidence in the company’s financial outlook. For fiscal year 2025, FedEx reported annual revenues of approximately $88 billion, supported by a diversified portfolio of services spanning express transportation, ground shipping, freight, logistics, and digital commerce solutions.
Despite macroeconomic headwinds and a softening freight market in certain geographies, FedEx has demonstrated resilience through cost discipline and network agility. Its recent DRIVE transformation initiative has already delivered over $2 billion in savings, with further efficiencies expected in fiscal 2026. These cost reductions provide the financial flexibility to support shareholder returns while continuing strategic investments in digital innovation and sustainability.
Strengthening Operational Sustainability and ESG Commitments
FedEx’s commitment to shareholder value is matched by its equally ambitious environmental, social, and governance (ESG) agenda. The company has pledged to achieve carbon-neutral operations globally by 2040, a target that has spurred substantial investment in electric vehicles, sustainable aviation fuel (SAF), energy-efficient facilities, and carbon capture initiatives.
With over 500,000 team members worldwide, FedEx is consistently recognized as one of the world’s most admired and ethical employers. The company remains focused on creating an inclusive workplace and supporting local communities through initiatives such as FedEx Cares and the company’s longstanding disaster relief partnerships with global humanitarian organizations.
These ESG efforts are not only aligned with stakeholder expectations but are increasingly viewed as value drivers in a world where customers and investors alike are holding companies to higher standards of corporate responsibility.
About FedEx Corporation
Founded in 1971 and headquartered in Memphis, Tennessee, FedEx Corp. has become one of the most recognizable names in global logistics. Through its family of operating companies—including FedEx Express, FedEx Ground, FedEx Freight, and FedEx Logistics—the corporation provides a comprehensive suite of business services that span over 220 countries and territories.
FedEx’s global network combines physical infrastructure with technology-driven intelligence, enabling the company to deliver approximately 16 million packages per day across multiple time zones and transportation modes. The company continues to leverage artificial intelligence, advanced analytics, and digital platforms to enhance real-time visibility, optimize delivery routes, and improve customer experiences.
FedEx’s Strategic Vision for Growth
As FedEx looks toward the future, the company remains focused on strategic growth initiatives and technological innovation. FedEx is expanding its capabilities in data-driven logistics, deploying more sophisticated demand forecasting tools and automation in its distribution centers.
The company is also exploring the potential of autonomous delivery vehicles and drones, investing in pilot programs and partnerships to prepare for next-generation logistics solutions. These forward-looking initiatives complement the company’s core mission: to connect people and possibilities around the world—responsibly, reliably, and efficiently.
Cautionary Note on Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are subject to risks, uncertainties, and assumptions. These statements reflect FedEx management’s current views on future events, including its financial performance and business strategy, and include terms such as “will,” “may,” “expects,” “targets,” “intends,” “plans,” “believes,” and other similar expressions.
Actual results may differ materially from those expressed or implied due to a range of factors, including but not limited to global economic conditions, changes in customer demand, fuel price volatility, regulatory challenges, labor market dynamics, and geopolitical developments.
A detailed discussion of these risks can be found in FedEx Corp.’s filings with the U.S. Securities and Exchange Commission (SEC), including the company’s most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. FedEx assumes no obligation to update forward-looking statements to reflect events or circumstances after the date of this release.