FedEx Corporation (FDX)
Gross profit margin
| May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 23,259,000 | 18,952,000 | 19,166,000 | 20,167,000 | 17,954,000 |
| Revenue | US$ in thousands | 87,926,000 | 87,693,000 | 90,155,000 | 93,512,000 | 83,959,000 |
| Gross profit margin | 26.45% | 21.61% | 21.26% | 21.57% | 21.38% |
May 31, 2025 calculation
Gross profit margin = Gross profit ÷ Revenue
= $23,259,000K ÷ $87,926,000K
= 26.45%
The gross profit margin of FedEx Corporation over the period from May 31, 2021, to May 31, 2025, reflects a relatively stable profitability at the gross level, with some notable fluctuations. Specifically, the gross profit margin was 21.38% as of May 31, 2021, indicating that approximately 21.38 cents of gross profit was generated for every dollar of revenue. This margin saw a slight increase to 21.57% by May 31, 2022, suggesting a modest improvement in gross profitability or cost management within that period.
However, by May 31, 2023, the gross margin experienced a slight decline to 21.26%, which may reflect increased costs or competitive pressures impacting gross profit. The upward trend resumed by May 31, 2024, with the gross profit margin rising again to 21.61%, approaching the levels observed in 2022, indicating a potential normalization or improvement in cost controls or revenue management strategies.
A significant change is noted by May 31, 2025, where the gross profit margin jumps to 26.45%. This substantial increase signifies a material improvement in gross profitability, which could be attributable to various factors such as increased revenue, reduced cost of goods sold, higher-margin services, or a combination of these factors. It also suggests a possible strategic shift or operational efficiencies that enhanced the company's gross margins during this period.
Overall, the data indicates that while FedEx's gross profit margin has largely remained in the low 21% range for most of the observed period, there has been a notable upward shift in the margin by May 2025, marking a significant improvement in the company's gross profitability position.