AT&T vs FedEx: Revenue, Profit and Business Model
AT&T reported $125.6B of revenue in FY2025 and $22B of net income. FedEx reported $94.7B of revenue in FY2026 and $4.4B of net income.
Latest financial snapshot
Financial summary
AT&T
AT&T's financial story is large revenue, large debt and a slow correction. The company funded the $48.5 billion DirecTV purchase in 2015 and the $85.4 billion Time Warner purchase in 2018 largely with borrowing, and net debt passed $180 billion after Time Warner closed. It then reversed course: WarnerMedia was separated in 2022, the dividend was cut, and the remaining 70% DIRECTV stake went to TPG in July 2025 for a $5.6 billion gain. FY2025 revenue was $125.6 billion, with $23.4 billion of total net income, $46.4 billion of adjusted EBITDA and $16.6 billion of free cash flow against $117.4 billion of net debt. Roughly $22 billion a year of capital investment goes mostly into fiber and 5G.
FedEx
FedEx's FY2026 results showed steady growth on a lower cost base. Revenue rose to $94.7 billion and GAAP operating income to $5.46 billion (5.8% margin; 7.0% adjusted). The company said it beat its goal of $1 billion in transformation savings for the year, and capital spending fell 6% to $3.8 billion, or 4.0% of revenue, the lowest ratio in its history. Fourth-quarter revenue was $25.0 billion with adjusted EPS of $6.31. Spin-off costs of $2.46 per share and business optimization costs of $1.19 per share explain most of the gap between GAAP and adjusted earnings.
Revenue and profit by year
AT&T
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2025 | $125.6B | $22B | 17.5% | +2.7% | Source |
| FY2024 | $122.3B | $10.9B | 8.9% | -0.1% | Source |
| FY2023 | $122.4B | $14.4B | 11.8% | +1.4% | Source |
| FY2022 | $120.7B | -$8.5B | -7.1% | -9.9% | Source |
| FY2021 | $134B | $20.1B | 15.0% | -6.3% | Source |
| FY2020 | $143.1B | -$5.2B | -3.6% | -21.1% | Source |
| FY2019 | $181.2B | $13.9B | 7.7% | +6.1% | Source |
| FY2018 | $170.8B | $19.4B | 11.3% | +6.4% | Source |
| FY2017 | $160.5B | $29.4B | 18.3% | -2.0% | Source |
| FY2016 | $163.8B | $13B | 7.9% | — | Source |
FedEx
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2026 | $94.7B | $4.4B | 4.7% | +7.7% | Source |
| FY2025 | $87.9B | $4.1B | 4.7% | +0.3% | Source |
| FY2024 | $87.7B | $4.3B | 4.9% | -2.7% | Source |
| FY2023 | $90.2B | $4B | 4.4% | -3.6% | Source |
| FY2022 | $93.5B | $3.8B | 4.1% | +11.4% | Source |
| FY2021 | $84B | $5.2B | 6.2% | +21.3% | Source |
| FY2020 | $69.2B | $1.3B | 1.9% | -0.7% | Source |
| FY2019 | $69.7B | $540M | 0.8% | +6.5% | Source |
| FY2018 | $65.5B | $4.6B | 7.0% | +8.5% | Source |
| FY2017 | $60.3B | $3B | 5.0% | — | Source |
Where the revenue comes from
AT&T
- Mobility~71%
Wireless service plans and device sales. Segment revenue was $89.5 billion in 2025, of which $67.4 billion was service revenue and $22.1 billion equipment.
- Business Wireline~14%
Connectivity for businesses, from fiber and dedicated internet to legacy voice and data. Revenue fell to $17.2 billion in 2025 from $18.8 billion in 2024.
- Consumer Wireline~11%
Home broadband, led by AT&T Fiber and AT&T Internet Air. Revenue was $14.2 billion in 2025, with fiber revenue up 17.0% to $8.6 billion.
- Latin America~3%
Wireless service in Mexico. Revenue was $4.4 billion in 2025, up from $4.2 billion, with $145 million of operating income.
FedEx
- Package Delivery and Express Services
Largest stream
Domestic and international parcel delivery through the integrated Federal Express air-ground network.
- Fuel Surcharges and Yield Management
Variable stream
Pricing mechanisms tied to fuel, shipment mix, base yields, and service levels.
- Logistics, Customs, and Technology Services
Supporting stream
Brokerage, supply-chain management, e-commerce enablement, tracking, and customer technology services.
Business model and strategy
AT&T
How it makes money
AT&T runs a capital-intensive network business. It buys licensed wireless spectrum, builds and upgrades cell sites, and trenches fiber, then charges consumers and businesses a monthly fee to use that network. Capital investment was $22.0 billion in 2025 against $125.6 billion of revenue.
Growth strategy
With the US smartphone market saturated, AT&T's growth depends on home internet and on keeping the wireless customers it has. It is building fiber, which passed 32.0 million consumer and business locations at the end of 2025 and carried 10.4 million subscribers, and it sells AT&T Internet Air fixed wireless where fiber is not available.
Competitive advantage
AT&T's advantage is the cost of replicating what it already owns. Its fiber network passed 32.0 million consumer and business locations at the end of 2025, and its mid-band 5G service covers more than 310 million people. Keeping that going took $22.0 billion of capital investment in 2025 alone, which is why the national market has three carriers rather than thirty.
FedEx
How it makes money
FedEx earns money by charging shippers to move parcels and freight through a high-fixed-cost network of aircraft, hubs, sort facilities, and delivery routes. Prices depend on weight, dimensions, distance, and speed (overnight, two-day, ground, international priority or economy), plus fuel, residential, and peak surcharges that are updated weekly or seasonally.
Growth strategy
FedEx's growth plan has three parts: lower cost to serve by merging Express and Ground routes and facilities under Network 2.0, shrink and modernize the air fleet to match demand, and push into higher-yield segments such as healthcare cold chain, B2B shipping, small and mid-sized business customers, and cross-border e-commerce.
Competitive advantage
FedEx's moat is physical scale that is very hard to copy: one of the world's largest cargo airlines, the Memphis World Hub that sorts packages overnight, and pickup and delivery coverage in more than 220 countries and territories.
Questions about AT&T vs FedEx
Which company has higher revenue — AT&T Inc. or FedEx Corporation?
AT&T Inc. reported $125.6B (FY2025), while FedEx Corporation reported $94.7B (FY2026). By last reported revenue, AT&T Inc. is the larger business, with FedEx Corporation reporting a smaller revenue base. Note: these are from different fiscal years and are not a direct like-for-like comparison.
What is the market cap of AT&T Inc. vs FedEx Corporation?
AT&T Inc.'s market capitalisation stands at $174.4B, while FedEx Corporation's is $73.0B. AT&T Inc. carries the higher market valuation, reflecting investors' expectations of its future earnings power relative to FedEx Corporation.
Which is more financially efficient — AT&T Inc. or FedEx Corporation?
AT&T Inc. generates $945k / employee in revenue per employee, while FedEx Corporation generates $179k / employee. AT&T Inc. shows higher revenue efficiency per headcount, though this reflects business model differences — capital-light software companies routinely outperform labour-intensive manufacturers on this metric.
How do AT&T Inc. and FedEx Corporation make money?
AT&T Inc. and FedEx Corporation generate revenue in fundamentally different ways. AT&T Inc.: AT&T runs a capital-intensive network business. FedEx Corporation: FedEx earns money by charging shippers to move parcels and freight through a high-fixed-cost network of aircraft, hubs, sort facilities, and delivery routes.
Which company is valued higher relative to revenue — AT&T Inc. or FedEx Corporation?
On a price-to-sales (P/S) basis, AT&T Inc. trades at 1.4x P/S and FedEx Corporation at 0.8x P/S. AT&T Inc. commands a higher revenue multiple, typically indicating that investors expect faster growth or higher future margins compared to FedEx Corporation. A higher multiple is not inherently better — it may also signal that the stock is priced for perfection.
Is AT&T Inc. bigger than FedEx Corporation?
By last reported revenue, AT&T Inc. ($125.6B (FY2025)) is the larger company compared to FedEx Corporation ($94.7B (FY2026)). Revenue scale is one dimension of size — market capitalisation, employee count, and geographic reach are also relevant depending on the context.
Figures come from each company's filings and the sources linked beside them. Amounts reported in another currency are shown in US dollars at an approximate rate and marked with ~. Back to the AT&T vs FedEx overview