FedEx is shifting to a “quality over quantity” strategy as it looks to improve margins and grow earnings through 2029.
At its 2026 Investor Day, the company said it will prioritize “premium B2B and specialized B2C segments where customers value speed, precision, visibility, and reliability.”
Key industries include healthcare, automotive, aerospace, data centers, and the premium end of e-commerce. The strategy marks a shift away from competing broadly for price-driven parcel volume and toward higher-margin freight tied to specific vertical markets.
“For over five decades, FedEx has built one of the world’s most reliable and valuable industrial networks powering global trade,” said Raj Subramaniam, FedEx Corp. President and Chief Executive Officer. “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.”
Under its “Grow in High-Margin Verticals” priority, FedEx said it will focus on areas where service levels matter more than price alone. That includes healthcare shipments that require strict timing, aerospace and automotive freight tied to production schedules, and data center projects that depend on coordinated delivery of specialized equipment.
On the consumer side, FedEx said it will concentrate on the premium end of e-commerce, targeting shipments where customers expect faster delivery and strong visibility rather than the lowest-cost service.
The focus on higher-value freight is part of a larger transformation effort. FedEx outlined four strategic priorities at the event, including scaling digital and AI tools, modernizing its integrated air and surface networks, and embedding its One FedEx operating model.
“Our physical scale combined with digital insight serves as the foundation of our indispensable industrial network with unmatched global reach, reliability, and expertise,” Subramaniam continued. “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.”
