FedEx is onboarding nearly $400 million in new annualized revenue for its healthcare vertical over the next 90 days, EVP and Chief Customer Officer Brie Carere said on an earnings call Thursday.
The business gains will allow FedEx to end the fiscal year with about $9 billion in healthcare revenue, according to Carere. She credited FedEx Surround, a platform offering real-time shipping visibility, as a key driver in the results.
"Our advanced capabilities helped to track this new business, with three quarters of this business tied to bundled customers who are using the FedEx Surround suite," Carere said.
FedEx Surround's tracking capabilities are particularly useful for high-value shipments, according to Carere, which healthcare customers offer plenty of. The company recently expanded the platform's monitoring and intervention offering to 40 countries, including several markets in Asia and Europe.
FedEx is also using technology from its returns platform to benefit healthcare customers that need recurring collaborative delivery services, such as moving lab shipments between medical providers.
"This process enables a simpler shipping process with more visibility, allowing shipment recipients to staff more appropriately and efficiently," Carere said.
Healthcare business-to-business shipping is one of FedEx's target growth segments as the carrier seeks to make more profitable types of deliveries, compared to high-volume customer types like e-commerce.
The most recent gains build upon the more than $500 million in quality healthcare agreements FedEx landed in fiscal year 2024. Quality agreements consist of deals involving customized procedures for critical shipments.
However, FedEx faces stiff competition in the healthcare logistics space. Rival UPS' healthcare revenue in 2024 totaled about $10.5 billion, CEO Carol Tomé said on a January earnings call. The company is pushing to grow that to $20 billion by 2026 through a combination of in-house expansion and outside acquisitions.
