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(Sharecast News) - Delivery and logistics giant FedEx said on Thursday it is expecting to grow its top line by $13bn over the next three financial years as it laid out plans to ramp up digital transformation and upgrade its network over the medium term.
At an investor day in Memphis, FedEx said it is targeting revenues of around $98bn by the fiscal year ending 31 May 2029.
That would represent a 4% compound annual growth rate compared with the estimated $85bn revenue guidance for the current fiscal year.
FedEx is also expecting to make $8bn in operating income at an 8% operating margin, up from $4.5bn and 5.3% this year, respectively.
The company's projections exclude the FedEx Freight business, which is being spun off into a new publicly traded company this summer. For FY26, FedEx Freight is expected to generate $8.5bn in revenues.
Growth is expected to come from FedEx's focus on high-margin verticals, such as premium B2B and specialised B2C segments across healthcare, automotive, aerospace, data centers, and the premium end of e-commerce.
The company also said it is intending to ramp up its usage of AI and automation, deliver ongoing efficiency gains and modernise its air and ground networks.
The predictions came as FedEx pointed to third-quarter profits ahead of market forecasts "due to the company's exceptional execution in delivering a successful Peak season".
"FedEx is now entering a new era as we build the most flexible, efficient, and intelligent network in history. Our vision is simple: to make supply chains smarter for everyone," said president and chief executive Raj Subramaniam.
"What sets this moment apart is the role of digital intelligence. This is a true force multiplier that will support durable value with profitable growth, higher margins, stronger cash generation, and increased returns for our stockholders."
FedEx shares were up 2.1% at $375.68 by 1537 GMT.
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