FedEx Freight Reports First Earnings Post-Spinoff
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 26 2026
0mins
Source: seekingalpha
- Revenue Growth: FedEx Freight (FDXF) reported its first earnings since the spinoff from FedEx (FDX), with Q4 revenue increasing 4.8% year-over-year to $2.4 billion, driven by higher fuel prices, increased revenue per shipment, and heavier shipments despite softer freight volumes.
- Increased Revenue Per Shipment: Revenue per shipment rose 11.5% year-over-year, reflecting the company's ongoing commitment to pricing discipline and yield management, indicating a strong focus on maintaining profitability in a competitive market.
- Future Outlook: FedEx Freight anticipates revenue growth of 4% to 6% for 2026, with adjusted operating income expected between $605 million and $645 million, and an adjusted operating margin of 11.5% to 12.0%, demonstrating a strategic focus on profitable growth and service differentiation as an independent entity.
- Analyst Rating: Bank of America reiterated its Buy rating on FedEx Freight and raised its price target to $187, with analysts noting that despite FDXF's lower margins, the company is expected to keep pace with industry leaders due to its focus on profitable top-line growth.
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Analyst Views on FDXF
Wall Street analysts forecast FDXF stock price to rise
0 Analyst Rating
0 Buy
0 Hold
0 Sell
Current: 155.770
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Averages
High
Current: 155.770
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Averages
High
About FDXF
FedEx Freight Holding Company, Inc. comprises a less-than-truckload (LTL) freight transportation services business, including FedEx Custom Critical, LTL Select, and other businesses. The Company's service offerings include Priority, Economy and Direct. Through its subsidiary FedEx Custom Critical, Inc., it provides expedited, time and temperature specific freight solutions, including Surface Expedite and White Glove Services. The Company operates in all states across the United States, Canada, Mexico, Puerto Rico, and the United States Virgin Islands.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Investor Disappointment: Nike's stock fell 35.6%, prompting our exit on Wednesday, reflecting ongoing issues in the Chinese market and a weak earnings report, demonstrating the need for companies to quickly adapt to market changes to maintain investor confidence.
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- Funds Redeployment: The trades utilized about half of the cash proceeds from the earlier Nike exit, indicating confidence in FedEx and its newly spun-off entity, particularly during a transitional period where market sentiment remains optimistic about future growth potential.
- Financial Restructuring: During the financial transition, management's outlook appears strong with volume growth for six consecutive quarters and improving margins, showcasing the company's resilience in navigating complex financial circumstances.
- Market Outlook: Goldman Sachs initiated coverage of FedEx Freight with a buy rating and a $186 price target, reflecting confidence in specific growth opportunities for the company, especially as the freight market shows signs of recovery after several years of recession.
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- Salesforce Stock Surge: Salesforce shares jumped over 5% after Guggenheim upgraded the stock to buy with a $228 price target, although Jim Cramer remains cautious about the company's growth prospects, noting that AI pressure won't be fatal but overall business growth is lacking.
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