FedEx Freight (FDXF) Q4 2026 earnings summary

Executive summary

• Successfully launched as a standalone, publicly traded LTL company on June 1, 2026, debuting on the NYSE under ticker FDXF and marking a major milestone.

• Achieved record-low DOT preventable accident performance in FY26, reinforcing a strong safety culture.

• Completed hiring of a dedicated LTL sales force and launched new digital platforms, including a modernized pricing system and website.

• Emphasized a disciplined strategy centered on people, customers, and shareholders for long-term growth and service differentiation.

• Focused on a dual service LTL model (Priority and Economy) leveraging a single integrated network for efficiency and flexibility.

Financial highlights

• Fourth quarter FY26 revenue reached $2.4 billion, up 4.8%–5% year-over-year, driven by higher fuel surcharges and increased weight per shipment.

• Q4 adjusted operating income was $363 million, with a 15.1% adjusted operating margin; full-year adjusted operating income was $1.1 billion on $8.8 billion revenue (12.6% margin).

• Revenue per shipment increased 11.5% year-over-year in Q4; revenue per hundredweight rose 8.2%.

• Incurred $80 million in separation-related costs and lapped a $33 million gain from a facility sale in the prior year.

• Average daily shipments in Q4 FY26 were 87,000, down 5.9% year-over-year; weight per shipment increased 3%.

Outlook and guidance

• For the seven-month transition period ending December 31, 2026, expects 4%–6% revenue growth versus prior year, with 60% of growth weighted to the first four months.

• Adjusted operating income forecasted at $605–$645 million, implying an 11.8% margin at midpoint; adjusted EPS forecasted at $2.40–$2.60.

• Yield improvements and cost efficiencies expected to offset headwinds from compensation, TSAs, and modest volume declines.

• Sequential volume improvement anticipated, with momentum expected to continue into 2027.

• Operating margin projected at 9.0–9.5% (adjusted 11.5–12.0%) for the transition period.