FedEx posts strong FY26 revenue growth but valuation remains uncertain post-Freight spinoff.

FedEx Corporation, after spinning off its Freight division, reported a 9.3% revenue increase and a 7.7% adjusted operating margin in FY26, driven by higher pricing in premium segments. Despite positive volume and mix trends, limited segment disclosure and transitional costs create uncertainty in valuation. FedEx trades at a premium to UPS on price-to-earnings but appears undervalued on a sum-of-the-parts basis. The analyst maintains a Hold rating, awaiting clearer EBITDA details and margin recovery before a more bullish outlook.