FedEx (FDX) Citi's 2026 Global TMT Conference summary

Technology and digital twin modeling were essential for network integration and efficiency gains. Cost reduction programs, including DRIVE and Network 2.0, have removed billions from the cost structure and integrated previously separate networks, with 62% completion expected by year-end and full integration by next year. Focused on achieving $6 billion in free cash flow and double-digit earnings growth by CY 2029, with modest revenue growth driven by transformation initiatives. Generates 2 PB of data daily, fueling AI initiatives that enhance efficiency, differentiate services, and create new value streams. AI has reduced aircraft maintenance research time by 90% and improved delivery time precision by 50%. Computer vision and AI tools reclaim tens of millions in surcharge revenue annually and enable predictive, real-time supply chain visibility.