FedEx vs Oracle: Revenue, Profit and Business Model
FedEx reported $94.7B of revenue in FY2026 and $4.4B of net income. Oracle reported $67.4B of revenue in FY2026 and $17.1B of net income.
Latest financial snapshot
Financial summary
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.
Oracle
Oracle's revenue grew from $39.1 billion in FY2020 to $57.4 billion in FY2025 and $67.36 billion in FY2026, when net income was $17.09 billion. Growth is now driven by cloud: Q1 FY2027 cloud revenue (IaaS plus SaaS) was $11.6 billion, up 62%, and operating cash flow was a record $23 billion for the quarter. The other side of the ledger is capex. FY2026 capital spending of $55.7 billion pushed free cash flow negative, and Oracle has funded the gap with bond issuance and equity sales. Management guides to at least $90 billion of FY2027 revenue and non-GAAP EPS of $8.10.
Revenue and profit by year
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 |
Oracle
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2026 | $67.4B | $17.1B | 25.4% | +17.3% | Source |
| FY2025 | $57.4B | $12.4B | 21.7% | +8.4% | Source |
| FY2024 | $53B | $10.5B | 19.8% | +6.0% | Source |
| FY2023 | $50B | $8.5B | 17.0% | +17.7% | Source |
| FY2022 | $42.4B | $6.7B | 15.8% | +4.8% | Source |
| FY2021 | $40.5B | $13.7B | 34.0% | +3.6% | Source |
| FY2020 | $39.1B | $10.1B | 25.9% | -1.1% | Source |
| FY2019 | $39.5B | $11.1B | 28.1% | +0.3% | Source |
| FY2018 | $39.4B | $3.6B | 9.1% | +4.2% | Source |
| FY2017 | $37.8B | $9.5B | 25.0% | — | Source |
Where the revenue comes from
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.
Oracle
- Cloud Services and License SupportLargest
OCI, SaaS, database services, and recurring support revenue.
- Cloud License and On-Premise LicenseMaterial
New licenses and cloud license rights for enterprise software.
- ServicesMaterial
Consulting, support, and implementation work.
- HardwareSmaller
Exadata, engineered systems, and related hardware products.
Business model and strategy
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.
Oracle
How it makes money
Oracle sells to businesses and governments, not consumers. Its largest revenue line is cloud services and license support: customers pay recurring fees for OCI compute, storage, GPUs and database services, for Fusion Cloud ERP, HCM, SCM and NetSuite subscriptions, and for annual support on licensed Oracle Database and middleware.
Growth strategy
Oracle's growth plan rests on renting AI training and inference capacity at very large scale. It is building data centers for OpenAI under the Stargate program (a partnership OpenAI describes as over $300 billion across five years and up to 4.5 gigawatts), and it also serves xAI, Meta, NVIDIA and AMD workloads.
Competitive advantage
Oracle's edge comes from its installed base. Oracle Database runs core financial, telecom and government systems, and moving those workloads is slow, expensive and risky, which keeps support revenue recurring. OCI adds a price-performance pitch built on bare-metal servers and RDMA networking for large GPU clusters, and Oracle can offer the same database inside rival clouds.
Questions about FedEx vs Oracle
Which company has higher revenue — FedEx Corporation or Oracle Corporation?
FedEx Corporation reported $94.7B (FY2026), while Oracle Corporation reported $67.4B (FY2026). By last reported revenue, FedEx Corporation is the larger business, with Oracle Corporation reporting a smaller revenue base.
What is the market cap of FedEx Corporation vs Oracle Corporation?
FedEx Corporation's market capitalisation stands at $73.0B, while Oracle Corporation's is $393.6B. Oracle Corporation carries the higher market valuation, reflecting investors' expectations of its future earnings power relative to FedEx Corporation.
Which is more financially efficient — FedEx Corporation or Oracle Corporation?
FedEx Corporation generates $179k / employee in revenue per employee, while Oracle Corporation generates $478k / employee. Oracle Corporation 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 FedEx Corporation and Oracle Corporation make money?
FedEx Corporation and Oracle Corporation generate revenue in fundamentally different ways. 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. Oracle Corporation: Oracle sells to businesses and governments, not consumers.
Which company is valued higher relative to revenue — FedEx Corporation or Oracle Corporation?
On a price-to-sales (P/S) basis, FedEx Corporation trades at 0.8x P/S and Oracle Corporation at 5.8x P/S. Oracle Corporation 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 FedEx Corporation bigger than Oracle Corporation?
By last reported revenue, FedEx Corporation ($94.7B (FY2026)) is the larger company compared to Oracle Corporation ($67.4B (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 FedEx vs Oracle overview