FedEx Corporation (NYSE: FDX) Targets High-Margin Clients and Sets Ambitious Financial Goals

Font: Financial Modeling Prep  • Feb 13, 2026

• FedEx aims for a revenue target of $98 billion by 2029, focusing on high-margin B2B and specialized B2C markets.
• The company plans to increase its operating income by $3 billion through premium sector targeting and digital enhancements.
• Strategic priorities include achieving a 10% operating margin in the U.S. Domestic segment and an 8% margin internationally by 2029.

FedEx Corporation (NYSE: FDX) is a global leader in transportation, e-commerce, and business services. The company is known for its extensive logistics network and innovative solutions. FedEx competes with other major players like UPS and DHL in the logistics and delivery industry. On February 12, 2026, Jordan Alliger from Goldman Sachs set a price target of $364 for FedEx. At that time, the stock was trading at $369.46, which is about 1.48% above the target price.

FedEx is focusing on high-margin clients to reach its ambitious revenue target of $98 billion by 2029. The company is concentrating on premium business-to-business (B2B) and specialized business-to-consumer (B2C) markets. These markets demand speed, precision, visibility, and reliability. Key sectors targeted include healthcare, automotive, aerospace, data centers, and premium eCommerce companies.

During its 2026 Investor Day, FedEx unveiled a strategy to increase its operating income by $3 billion. The company aims to solidify its leadership in the global industrial network by targeting premium growth sectors and enhancing digital and AI capabilities. FedEx plans to transform operations to improve profitability and shareholder value.

FedEx has set four strategic priorities to reach its financial objectives by 2029. These include achieving approximately $98 billion in revenue with a compound annual growth rate (CAGR) of around 4%, an operating income of about $8 billion with a non-GAAP CAGR of 14%, and an adjusted free cash flow of roughly $6 billion. The company also aims to keep aircraft-related capital spending below $1 billion.

FedEx is focusing on achieving a 10% operating margin in its U.S. Domestic segment and an 8% margin internationally by 2029. CEO Raj Subramaniam emphasized the importance of integrating digital intelligence as a pivotal component of their strategy. As FedEx optimizes its operations, AI plays a crucial role in enhancing efficiency and driving future growth.