FedEx Corporation (FDX)
Net profit margin
| May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 4,092,000 | 4,331,000 | 3,972,000 | 3,826,000 | 5,231,000 |
| Revenue | US$ in thousands | 87,926,000 | 87,693,000 | 90,155,000 | 93,512,000 | 83,959,000 |
| Net profit margin | 4.65% | 4.94% | 4.41% | 4.09% | 6.23% |
May 31, 2025 calculation
Net profit margin = Net income ÷ Revenue
= $4,092,000K ÷ $87,926,000K
= 4.65%
The net profit margin of FedEx Corporation has exhibited fluctuations over the specified period from May 31, 2021, to May 31, 2025.
In May 2021, the net profit margin stood at 6.23%, representing the highest level within the observed timeframe. This figure indicates that in that year, FedEx was able to retain approximately 6.23 cents as net income for every dollar of revenue generated.
By May 2022, the net profit margin had declined significantly to 4.09%. This decline suggests that the company experienced increased costs or decreased profitability, resulting in a lower portion of revenue translating into net income. The reduction may reflect operational challenges, competitive pressures, or macroeconomic factors impacting profitability during this period.
In May 2023, the net profit margin saw a slight improvement to 4.41%, indicating some recovery or stabilization compared to the previous year. This marginal increase suggests efforts to enhance operational efficiency or favorable market conditions contributing mildly to overall profitability.
By May 2024, the margin increased further to 4.94%, approaching the levels observed in 2021, which may imply continued improvement in profit retention or cost management strategies. This upward trend signifies a positive development in FedEx's profitability profile.
However, in May 2025, the net profit margin decreased slightly to 4.65%, indicating a slight contraction after the previous year's growth. This could be attributable to rising expenses, competitive dynamics, or other external factors impacting net income margins.
Overall, the net profit margin demonstrates a decline from its peak in 2021, followed by partial recovery and stabilization through 2024, before experiencing a modest decrease in 2025. The trend reflects the company's efforts to improve profitability amid varying economic and operational conditions over the analyzed period.