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FedEx: Inside Network 2.0’s 3-to-6 Month Efficiency Window—How Fast Can the Benefits Actually Show Up?

FedEx Corporation’s latest earnings report reveals a balanced mix of positive achievements and challenges faced during the second quarter of fiscal 2026. The company reported a 7% year-over-year increase in revenue, driven mainly by strong performance in its U.S. domestic package services and strategic initiatives in high-value verticals such as B2B logistics and healthcare. The company achieved its targeted transformation-related savings, resulting in a 17% growth in adjusted operating income and a notable adjusted EPS growth of 19%. This performance was underpinned by improved yields and strategic market share gains, especially in the B2B sector. Despite these successes, FedEx navigated multiple headwinds, including the grounding of its MD-11 fleet due to safety concerns, challenges from changing global trade policies, and an overall weak industrial economy. The MD-11 issue was particularly impactful, temporarily reducing the company’s global cargo capacity by 4%, which pressured adjusted operating income by about $25 million.