Better Results Lifted FedEx Corporation's (FDX) Performance in Q4

The London Company, an investment management company, released “The London Company Large Cap Strategy” fourth-quarter 2025 investor letter. In Q4 2025, US equities ended the third consecutive quarter of higher returns, with the Russell 3000 Index rising 2.4%. A copy of the letter can be downloaded here. The market highlighted how investors balanced the optimism on earnings growth and concerns regarding AI returns and cooling macroeconomic factors. Against this backdrop The London Company Large Cap portfolio returned 0.4% (0.2% net) compared to a 2.4% increase in the Russell 1000 Index. Volatility factors and concentrated market leadership were notable headwinds to the Strategy’s performance in the quarter.  Heading into 2026, the economic and policy backdrop presents a blend of confidence and doubt. Against this backdrop, the portfolio remains stable and believes it can help investors in long-term wealth creation while managing downside risk. In addition, please check the Strategy’s top five holdings to know its best picks in 2025.

In its fourth-quarter 2025 investor letter, The London Company Large Cap Strategy highlighted FedEx Corporation (NYSE:FDX) as one of its leading contributors. FedEx Corporation (NYSE:FDX) is a US-based company that focuses on transportation, e-commerce, and business services. On February 17, 2026, FedEx Corporation (NYSE:FDX) stock closed at $375.30 per share. One-month return of FedEx Corporation (NYSE:FDX) was 22.27%, and its shares are up 40.63% over the past twelve months. FedEx Corporation (NYSE:FDX) has a market capitalization of $88.554 billion.

The London Company Large Cap Strategy stated the following regarding FedEx Corporation (NYSE:FDX) in its fourth quarter 2025 investor letter:

"FedEx Corporation (NYSE:FDX) – FDX was a top performer after reporting better results led by improved revenue quality, disciplined pricing, and continued cost savings. Despite the freight recession, domestic ground volume has been fairly resilient recently, and margins expanded in the core Express business due to the structural cost reductions. We remain attracted to the strong cash generation, balanced capital allocation, and a solid balance sheet."

FedEx Corporation (NYSE:FDX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 60 hedge fund portfolios held FedEx Corporation (NYSE:FDX) at the end of the third quarter, compared to 67 in the previous quarter. While we acknowledge the potential of FedEx Corporation (NYSE:FDX) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered FedEx Corporation (NYSE:FDX) and shared the list of stocks Jim Cramer discussed. In Q4 2025, Hotchkis & Wiley Large Cap Disciplined Value Fund benefitted from FedEx Corporation's (NYSE:FDX) strong 23% rise. In addition, please check out our hedge fund investor letters Q4 2025 page for more investor letters from hedge funds and other leading investors.

READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.

Disclosure: None. This article is originally published at Insider Monkey.