FedEx Corp. (FDX) presented its technology strategy and financial outlook at Citi's 2026 Global TMT Conference on Tuesday, emphasizing artificial intelligence deployment, data commercialization, and cost-savings targets as the company seeks to accelerate earnings growth.
Shares of FedEx traded down 1.43% at $317.90 following Monday's close of $322.52, within a 52-week range of $222.32 to $404.03. The company carries a market capitalization of $75.27 billion, a trailing twelve-month revenue run rate of $94.72 billion, and a P/E ratio of 17.16. Shares have gained approximately 80% over the past year.
FedEx CEO Raj Subramaniam said the company expects EPS growth to accelerate to 20% year-on-year over the remaining seven months of calendar 2026, with double-digit earnings growth targeted through calendar 2029. Free cash flow is expected to reach $6 billion by 2029.
Cost reduction initiatives remain a central pillar of the financial plan. Savings from the DRIVE program are projected at $4 billion, while Network 2.0 — described as one of the largest industrial transformations in recent history — is expected to deliver an additional $2 billion. As of the fourth-quarter earnings call, 42% of Network 2.0 integration was complete, with 62% targeted by year-end and full integration aimed for next year.
At the conference, FedEx also pointed to a $1.9 trillion opportunity in global supply chain inefficiency that its DataWorks platform aims to address.
FedEx generates 2 petabytes of proprietary first-party data daily across its network of roughly 700 aircraft, 200,000 trucks, and 5,000 facilities. The logistics operator moves approximately $2 trillion in commerce annually, handling about 18 million packages a day and connecting roughly 3 million active shippers to between 225 million and 320 million recipients worldwide.
Artificial intelligence applications are already yielding measurable operational improvements. Research time for aircraft maintenance has been cut from 30 minutes to 3 minutes — a near 90% reduction — while predictive delivery-time accuracy has improved from four hours to two hours. Flight arrival times at the Memphis hub have improved by eight minutes, and computer vision tools are recovering tens of millions of dollars annually in leaking surcharge revenue.
Physical AI deployments are moving toward commercial use. Automated truck loading and unloading systems, after four to five years of development, are being deployed at facilities. Super humanoid robots featuring multiple elbows and increased degrees of freedom are set for rollout before December at the Hagerstown, Maryland facility. FedEx is also testing and deploying autonomous vehicle highway routes in partnership with Aurora.
DataWorks, whose engineering and organizational foundation began in 2020, encompasses three components: signals and insights platforms, externalized internal solutions such as customs clearance and brokerage services, and supply chain orchestration platforms covering inventory flow, supplier insights, demand management, forecasting, and yard management.
The Retail Momentum Index, developed in collaboration with Dun & Bradstreet, provides a six-week leading indicator for U.S. retail sales. In healthcare, 40% of FedEx's healthcare customers utilize SenseAware or Surround tracking tools. The company recently announced a contract with the U.S. Army through DataWorks to orchestrate military supply chains.
Vishal Sayal, FedEx's chief digital information officer, and Jennifer from investor relations participated in the session moderated by Citi industrial specialist John Thornton.
