FOR IMMEDIATE RELEASE

FedEx Corp. Reports Strong Third Quarter Earnings Growth MEMPHIS, Tenn., March 18, 2015 ... FedEx Corp. (NYSE: FDX) today reported earnings of $2.01 per diluted share for the third quarter ended February 28, compared to $1.23 per share last year. “We had a very successful peak season as volumes grew across all transportation segments, and our profit improvement programs are moving ahead as scheduled,” said Frederick W. Smith, FedEx Corp. chairman, president and chief executive officer. “We believe our strategy is sound, our culture is unique, and our customers value our broad portfolio of business solutions.” Third Quarter Results FedEx Corp. reported the following consolidated results for the third quarter: • • • •

Revenue of $11.7 billion, up 4% from $11.3 billion the previous year Operating income of $962 million, up 50% from $641 million last year Operating margin of 8.2%, up from 5.7% the previous year Net income of $580 million, up 53% from last year’s $378 million

Operating results improved due to volume and base yield growth in all three transportation segments, a significant net benefit from fuel, benefits from profit improvement program initiatives, a lower year-over-year weather impact and reduced pension expense. These improvements were partially offset by higher variable incentive compensation accruals. Share repurchases had a $0.11 year-over-year positive impact on third quarter earnings per diluted share. Outlook FedEx projects earnings to be $8.80 to $8.95 per diluted share for fiscal 2015. This outlook assumes continued moderate global economic growth. The capital spending forecast for fiscal 2015 remains $4.2 billion. - more 1

“We expect continued revenue and earnings growth this year, driven by ongoing improvements in all of our transportation segments,” said Alan B. Graf, Jr., FedEx Corp. executive vice president and chief financial officer. “Variable incentive compensation accruals will continue to increase as our financial performance improves, and we expect to deliver record fourth quarter and fiscal year earnings.” FedEx Express Segment For the third quarter, the FedEx Express segment reported: • Revenue of $6.66 billion, compared to last year’s $6.67 billion • Operating income of $384 million, up 129% from $168 million a year ago • Operating margin of 5.8%, up from 2.5% the previous year Revenue was essentially flat, as lower fuel surcharges and unfavorable currency exchange rates more than offset volume and base yield growth. U.S. domestic package volume grew by 4%, including 5% growth in overnight box. U.S. domestic revenue per package decreased 2% due to lower fuel surcharges, partially offset by higher base rates. FedEx International Economy volume grew 4%, while FedEx International Priority volume was flat. International export revenue per package decreased 4%, as lower fuel surcharges and unfavorable currency exchange rates were partially offset by favorable service mix and higher rates. Operating results were higher as increased base revenue, a significant net benefit from fuel and a lower year-over-year weather impact all contributed to the quarter. In addition, the company continued to benefit from profit improvement program initiatives. Partially offsetting these favorable factors were increased variable incentive compensation accruals and aircraft maintenance expenses. FedEx Ground Segment For the third quarter, the FedEx Ground segment reported: • Revenue of $3.39 billion, up 12% from last year’s $3.03 billion • Operating income of $558 million, up 14% from $490 million a year ago • Operating margin of 16.4%, up from 16.2% the previous year FedEx Ground average daily volume grew 7% in the third quarter due to growth in both business to business and home delivery services. Revenue per package increased 3% due to base rate increases and higher dimensional weight charges. FedEx SmartPost average daily volume - more 2

decreased 7% due to the reduction in volume from a major customer. SmartPost revenue per package increased 8% due to rate increases and improved customer mix, partially offset by higher postage costs. Operating results increased due to higher revenue per package, volume growth, a net benefit from fuel and a lower year-over-year weather impact, partially offset by network expansion costs. FedEx Corp. completed the acquisition of third-party logistics provider GENCO Distribution System, Inc. on January 30, 2015. The financial results of GENCO are included within the FedEx Ground segment from the date of acquisition. GENCO had an immaterial impact on the quarter’s results. FedEx Freight Segment For the third quarter, the FedEx Freight segment reported: • Revenue of $1.43 billion, up 6% from last year’s $1.35 billion • Operating income of $68 million, up 94% from $35 million a year ago • Operating margin of 4.8%, up from 2.6% the previous year Less-than-truckload (LTL) average daily shipments increased 3%, while LTL revenue per shipment grew 3% due to higher rates. Operating results improved due to the positive impacts of higher LTL revenue per shipment and higher average daily LTL shipments. Corporate Overview FedEx Corp. (NYSE: FDX) provides customers and businesses worldwide with a broad portfolio of transportation, e-commerce and business services. With annual revenues of $47 billion, the company offers integrated business applications through operating companies competing collectively and managed collaboratively, under the respected FedEx brand. Consistently ranked among the world's most admired and trusted employers, FedEx inspires its more than 325,000 team members to remain "absolutely, positively" focused on safety, the highest ethical and professional standards and the needs of their customers and communities. For more information, visit news.fedex.com. Additional information and operating data are contained in the company’s annual report, Form 10-K, Form 10-Qs and third quarter fiscal 2015 Statistical Book. These materials, as well as a webcast of the earnings release conference call to be held at 8:30 a.m. EDT on March 18 are available on the - more 3

company’s website at investors.fedex.com. A replay of the conference call webcast will be posted on our website following the call. Certain statements in this press release may be considered forward-looking statements, such as statements relating to management's views with respect to future events and financial performance. Such forward-looking statements are subject to risks, uncertainties and other factors which could cause actual results to differ materially from historical experience or from future results expressed or implied by such forward-looking statements. Potential risks and uncertainties include, but are not limited to, economic conditions in the global markets in which we operate, our ability to execute on our profit improvement programs, legal challenges or changes related to FedEx Ground’s owneroperators, new U.S. domestic or international government regulation, the impact from any terrorist activities or international conflicts, our ability to effectively operate, integrate and leverage acquired businesses, changes in fuel prices and currency exchange rates, our ability to match capacity to shifting volume levels and other factors which can be found in FedEx Corp.'s and its subsidiaries' press releases and filings with the SEC. Media Contact: Jess Bunn 901-818-7463 Investor Contact: Mickey Foster 901-818-7468 Home Page: fedex.com ###

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FEDEX CORP. FINANCIAL HIGHLIGHTS Third Quarter Fiscal 2015 (In millions, except earnings per share) (Unaudited) Three Months Ended February 28 2015 2014

%

Nine Months Ended February 28 2015 2014

%

Revenue: FedEx Express segment FedEx Ground segment FedEx Freight segment FedEx Services segment Eliminations and other Total Revenue

$6,656 3,393 1,428 370 (131) 11,716

$6,674 3,031 1,347 368 (119) 11,301

— 12% 6% 1% NM 4%

$20,542 9,416 4,622 1,138 (379) 35,339

$20,123 8,610 4,205 1,134 (344) 33,728

2% 9% 10% — NM 5%

Operating Expenses: Salaries and employee benefits Purchased transportation Rentals and landing fees Depreciation and amortization Fuel Maintenance and repairs Other Total Operating Expenses

4,411 2,165 686 652 810 505 1,525 10,754

4,167 2,063 662 652 1,163 438 1,515 10,660

6% 5% 4% — (30%) 15% 1% 1%

12,904 6,404 2,009 1,954 2,982 1,604 4,520 32,377

12,392 5,982 1,950 1,938 3,403 1,397 4,403 31,465

4% 7% 3% 1% (12%) 15% 3% 3%

Operating Income: FedEx Express segment FedEx Ground segment FedEx Freight segment Corporate, eliminations and other Total Operating Income

384 558 68 (48) 962

168 490 35 (52) 641

129% 14% 94% NM 50%

1,237 1,568 348 (191) 2,962

798 1,412 217 (164) 2,263

55% 11% 60% NM 31%

Other Expense: Interest, net Other, net Total Other Expense

(58) 5 (53)

(38) (9) (47)

NM NM NM

(153) 8 (145)

(95) (16) (111)

NM NM NM

Pretax Income

909

594

53%

2,817

2,152

31%

Provision for Income Taxes

329

216

52%

1,015

785

29%

Net Income

$580

$378

53%

$1,802

$1,367

32%

Diluted Earnings Per Share

$2.01

$1.23

63%

$6.25

$4.34

44%

287

307

(7%)

288

315

(9%)

$1,080

$864

25%

$2,969

$2,554

16%

Weighted Average Common and Common Equivalent Shares Capital Expenditures

5

FEDEX CORP. CONDENSED CONSOLIDATED BALANCE SHEETS Third Quarter Fiscal 2015 (In millions)

Feb. 28, 2015 (Unaudited)

ASSETS Current Assets Cash and cash equivalents Receivables, less allowances Spare parts, supplies and fuel, less allowances Deferred income taxes Prepaid expenses and other Total current assets

May 31, 2014

$ 3,478 5,584 488 510 422 10,482

$ 2,908 5,460 463 522 330 9,683

42,652 22,227 20,425

40,691 21,141 19,550

3,805 1,396 5,201

2,790 1,047 3,837

$36,108

$33,070

Property and Equipment, at Cost Less accumulated depreciation and amortization Net property and equipment Other Long-Term Assets Goodwill Other assets Total other long-term assets LIABILITIES AND STOCKHOLDERS' INVESTMENT .

Current Liabilities Current portion of long-term debt Accrued salaries and employee benefits Accounts payable Accrued expenses Total current liabilities

$

— 1,231 2,050 1,962 5,243

$

1 1,277 1,971 2,063 5,312

Long-Term Debt, Less Current Portion

7,228

4,736

Other Long-Term Liabilities Deferred income taxes Pension, postretirement healthcare and other benefit obligations Self-insurance accruals Deferred lease obligations Deferred gains, principally related to aircraft transactions Other liabilities Total other long-term liabilities

2,497 2,962 1,092 694 187 193 7,625

2,114 3,484 1,038 758 206 145 7,745

32 2,739 21,880 (3,909) (4,730) 16,012

32 2,643 20,429 (3,694) (4,133) 15,277

$36,108

$33,070

Commitments and Contingencies Common Stockholders' Investment Common stock, $0.10 par value, 800 million shares authorized Additional paid-in capital Retained earnings Accumulated other comprehensive loss Treasury stock, at cost Total common stockholders' investment 6

FEDEX CORP. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS Third Quarter Fiscal 2015 (In millions) (Unaudited) Nine Months Ended February 28 2015 2014 Operating Activities: Net income Noncash charges: Depreciation and amortization Other, net Changes in operating assets and liabilities, net

$1,802

$1,367

1,954 580 (863)

1,938 581 (1,308)

Net cash provided by operating activities

3,473

2,578

Investing Activities: Capital expenditures Business acquisitions, net of cash acquired Proceeds from asset dispositions and other

(2,969) (1,429) 16

(2,554) — 23

Net cash used in investing activities

(4,382)

(2,531)

Financing Activities: Principal payments on debt Proceeds from debt issuances Dividends paid Purchase of treasury stock Other, net

(1) 2,491 (171) (1,016) 280

(254) 1,997 (142) (3,984) 471

1,583

(1,912)

Effect of exchange rate changes on cash

104

(10)

Net increase (decrease) in cash and cash equivalents

570

(1,875)

2,908 $3,478

4,917 $3,042

Net cash provided by (used in) financing activities

Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period

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FEDEX EXPRESS SEGMENT FINANCIAL HIGHLIGHTS Third Quarter Fiscal 2015 (Dollars in millions) (Unaudited) Three Months Ended February 28 2015 2014

%

Nine Months Ended February 28 2015 2014

%

Revenues: Package Revenue: U.S. Overnight Box U.S. Overnight Envelope Total U.S. Overnight U.S. Deferred Total U.S. Package Revenue International Priority International Economy Total International Export Package International Domestic1 Total Package Revenue

$1,653 392 2,045 895 2,940 1,463 560 2,023 328 5,291

$1,643 393 2,036 869 2,905 1,542 540 2,082 347 5,334

1% — — 3% 1% (5%) 4% (3%) (5%) (1%)

$ 5,040 1,207 6,247 2,524 8,771 4,742 1,729 6,471 1,082 16,324

$ 4,852 1,210 6,062 2,369 8,431 4,760 1,639 6,399 1,077 15,907

4% — 3% 7% 4% — 5% 1% — 3%

580 375 45 1,000

577 379 48 1,004

1% (1%) (6%) —

1,745 1,182 133 3,060

1,786 1,184 157 3,127

(2%) — (15%) (2%)

Freight Revenue: U.S. International Priority International Airfreight Total Freight Revenue 2

365

336

9%

1,158

1,089

6%

$6,656

$6,674

—

$20,542

$20,123

2%

2,580 614 436 364 697 324 461 796 6,272

2,509 608 432 374 1,010 273 474 826 6,506

3% 1% 1% (3%) (31%) 19% (3%) (4%) (4%)

7,596 1,942 1,284 1,106 2,573 1,060 1,363 2,381 19,305

7,418 1,876 1,273 1,116 2,952 888 1,413 2,389 19,325

2% 4% 1% (1%) (13%) 19% (4%) — —

Operating Income

$ 384

$ 168

129%

$ 1,237

3

5.8%

2.5%

3.3 pts

6.0%

Other Revenue

Total Express Revenue Operating Expenses: Salaries and employee benefits Purchased transportation Rentals and landing fees Depreciation and amortization Fuel Maintenance and repairs Intercompany charges3 Other 3 Total Operating Expenses 3

Operating Margin

1 - International Domestic revenues represent international intra-country express operations. 2 - Includes FedEx Trade Networks, FedEx SupplyChain Systems and Bongo International. 3 - Prior year amounts have been revised to conform to the current year segment presentation regarding the allocation of corporate headquarters costs.

8

$

798

55%

4.0%

2.0 pts

FEDEX EXPRESS SEGMENT OPERATING HIGHLIGHTS Third Quarter Fiscal 2015 (Unaudited) Three Months Ended February 28 2015 2014

%

Nine Months Ended February 28 2015 2014

%

PACKAGE STATISTICS1 Average Daily Package Volume (000s): U.S. Overnight Box U.S. Overnight Envelope Total U.S. Overnight Package U.S. Deferred Total U.S. Domestic Package International Priority International Economy Total International Export Package International Domestic2 Total Average Daily Packages

1,258 516 1,774 1,024 2,798 398 175 573 831 4,202

1,202 515 1,717 984 2,701 399 168 567 780 4,048

5% — 3% 4% 4% — 4% 1% 7% 4%

1,243 521 1,764 928 2,692 410 175 585 854 4,131

1,153 538 1,691 871 2,562 409 168 577 822 3,961

8% (3%) 4% 7% 5% — 4% 1% 4% 4%

$20.85 12.07 18.30 13.88 16.68 58.40 50.60 56.01 6.28 $19.99

$21.70 12.09 18.82 14.01 17.07 61.38 51.01 58.30 7.05 $20.91

(4%) — (3%) (1%) (2%) (5%) (1%) (4%) (11%) (4%)

$21.34 12.18 18.64 14.32 17.15 60.79 52.03 58.17 6.67 $20.80

$22.15 11.84 18.87 14.31 17.32 61.30 51.24 58.37 6.90 $21.14

(4%) 3% (1%) — (1%) (1%) 2% — (3%) (2%)

Average Daily Freight Pounds (000s): U.S. International Priority International Airfreight Total Avg Daily Freight Pounds

8,145 2,823 718 11,686

8,263 2,823 757 11,843

(1%) — (5%) (1%)

7,831 2,866 673 11,370

7,850 2,917 839 11,606

— (2%) (20%) (2%)

Revenue Per Freight Pound: U.S. International Priority International Airfreight Composite Freight Yield

$ 1.13 2.11 1.00 $ 1.36

$ 1.11 2.13 1.00 $ 1.35

2% (1%) — 1%

$ 1.17 2.17 1.04 $ 1.42

$ 1.20 2.14 0.98 $ 1.42

(3%) 1% 6% —

63

63

—

190

190

—

Yield (Revenue Per Package): U.S. Overnight Box U.S. Overnight Envelope U.S. Overnight Composite U.S. Deferred U.S. Domestic Composite International Priority International Economy Total International Export Composite International Domestic2 Composite Package Yield FREIGHT STATISTICS

Operating Weekdays

1 - Package and freight statistics include only the operations of FedEx Express. 2 - International Domestic revenues represent international intra-country express operations.

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FEDEX GROUND SEGMENT FINANCIAL AND OPERATING HIGHLIGHTS

Third Quarter Fiscal 2015 (Dollars in millions) (Unaudited) Three Months Ended February 28 2015 2014

%

Nine Months Ended February 28 2015 2014

%

FINANCIAL HIGHLIGHTS Revenues: FedEx Ground FedEx SmartPost GENCO1 Total Revenues

$3,021 285 87 3,393

$2,751 280 — 3,031

10% 2% NM 12%

$8,569 760 87 9,416

$7,858 752 — 8,610

9% 1% NM 9%

565 1,348 126 136 3 61 281 315 2,835

460 1,253 105 121 7 57 274 264 2,541

23% 8% 20% 12% (57%) 7% 3% 19% 12%

1,498 3,765 349 381 9 174 834 838 7,848

1,319 3,476 299 350 14 166 821 753 7,198

14% 8% 17% 9% (36%) 5% 2% 11% 9%

$ 558

$ 490

14%

$ 1,568

$1,412

11%

16.4%

16.2%

0.2 pts

16.7%

16.4%

0.3 pts

63 61

63 61

— —

190 188

190 188

— —

Average Daily Package Volume (000s) FedEx Ground FedEx SmartPost

5,136 2,360

4,817 2,529

7% (7%)

4,851 2,117

4,584 2,276

6% (7%)

Yield (Revenue Per Package) FedEx Ground FedEx SmartPost

$9.32 $1.97

$9.04 $1.82

3% 8%

$9.28 $1.91

$9.00 $1.76

3% 9%

Operating Expenses: Salaries and employee benefits Purchased transportation Rentals Depreciation and amortization Fuel Maintenance and repairs Intercompany charges2 Other 2 Total Operating Expenses Operating Income2 2

Operating Margin

OPERATING STATISTICS Operating Weekdays FedEx Ground FedEx SmartPost

1 - Net revenues for GENCO are included from the January 30, 2015 date of closing. 2 - Prior year amounts have been revised to conform to the current year segment presentation regarding the allocation of corporate headquarters costs.

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FEDEX FREIGHT SEGMENT FINANCIAL AND OPERATING HIGHLIGHTS

Third Quarter Fiscal 2015 (Dollars in millions) (Unaudited) Three Months Ended February 28 2015 2014

Nine Months Ended February 28 2015 2014

%

%

FINANCIAL HIGHLIGHTS Revenue Operating Expenses: Salaries and employee benefits Purchased transportation Rentals Depreciation and amortization Fuel Maintenance and repairs Intercompany charges1 Other Total Operating Expenses1 1

Operating Income

1

Operating Margin

$1,428

$1,347

6%

$4,622

$4,205

10%

663 235 33 54 109 49 108 109 1,360

598 231 31 58 146 42 105 101 1,312

11% 2% 6% (7%) (25%) 17% 3% 8% 4%

2,005 792 96 170 399 148 329 335 4,274

1,807 715 94 172 436 134 329 301 3,988

11% 11% 2% (1%) (8%) 10% — 11% 7%

348

$ 217

60%

$

68

$

35

94%

$

4.8%

2.6%

2.2 pts

7.5%

5.2%

2.3 pts

62

62

—

188

188

—

62.0 26.8 88.8

59.5 26.3 85.8

4% 2% 3%

67.1 28.4 95.5

61.5 27.3 88.8

9% 4% 8%

1,287 1,007 1,203

1,280 1,002 1,195

1% — 1%

1,262 1,010 1,187

1,255 995 1,175

1% 2% 1%

$231.92 265.66 $242.52

$224.63 257.74 $235.14

3% 3% 3%

$229.43 265.51 $240.30

$222.99 257.10 $233.61

3% 3% 3%

$18.02 26.38 $20.17

$17.54 25.71 $19.67

3% 3% 3%

$18.18 26.29 $20.24

$17.77 25.83 $19.88

2% 2% 2%

OPERATING STATISTICS LTL Operating Weekdays Average Daily LTL Shipments (000s) Priority Economy Total Average Daily LTL Shipments Weight Per LTL Shipment (lbs) Priority Economy Composite Weight Per LTL Shipment LTL Revenue/Shipment Priority Economy Composite LTL Revenue/Shipment LTL Yield (Revenue/CWT) Priority Economy Composite LTL Yield

1 - Prior year amounts have been revised to conform to the current year segment presentation regarding the allocation of corporate headquarters costs.

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