FedEx Delivers $4B in Savings and Q2 Revenue Up 6.8%
FedEx’s DRIVE program delivered $4 billion in cumulative savings from FY2023 through FY2025 and Q2 FY2026 revenue rose 6.8% to $23.47 billion. The company plans a June 1, 2026 spin-off of FedEx Freight under ticker FDXF while trading at a forward P/E of 17x with a $377.50 consensus target.
1. DRIVE Program Savings
FedEx’s DRIVE cost-cutting initiative delivered $4 billion in cumulative savings from FY2023 through FY2025, supporting margin expansion efforts and offsetting inflationary pressures.
2. Q2 FY2026 Financial Performance
In Q2 FY2026, FedEx reported revenue of $23.47 billion, up 6.8% year-over-year, marking a return to revenue growth driven by operational efficiencies across air and ground networks.
3. FedEx Freight Spin-Off
The company plans to spin off its FedEx Freight unit on June 1, 2026, under ticker FDXF, aiming to unlock shareholder value by creating a pure-play ground freight business.
4. Valuation and Forward Outlook
At a forward P/E of 17x and an analyst consensus target of $377.50, FedEx appears attractively valued, though trade policy uncertainty and international exposure pose potential headwinds.