FedEx Freight (NYSE:FDXF) Releases Earnings Results

FedEx Freight (NYSE:FDXF) posted its quarterly earnings data on Thursday. The company reported $999.00 EPS for the quarter, Zacks reports.

Here are the key takeaways from FedEx Freight’s conference call:

• FedEx Freight completed its debut as a standalone public company and said the transition was executed smoothly, with no compromise to safety or customer service during the spin.
• The company reported a strong fourth quarter, with $2.4 billion in revenue, $363 million in adjusted operating income, and a 15% adjusted operating margin. Management also said service metrics and claims performance improved materially.
• Guidance for the June-December transition period calls for 4%-6% revenue growth and $605 million-$645 million of adjusted operating income, with most of the growth expected to come from yield rather than volume. Volumes are still expected to be slightly below last year, though trends are improving sequentially.
• Management highlighted early traction from standalone investments in technology and sales, including strong adoption of the new website and pricing platform, plus better customer experience scores and improved billing accuracy. They said these changes should support future pricing and operational efficiency.
• FedEx Freight said transition-related costs remain elevated, with TSA and separation expenses expected to run above $600 million for the next 12-18 months before declining later in 2027. Capital allocation priorities are organic growth, debt reduction, and eventual dividends and buybacks, with a dividend targeted for late 2026 or early 2027.

FedEx Freight Stock Down 3.5%

Shares of FedEx Freight stock opened at $153.00 on Friday. FedEx Freight has a 52 week low of $141.33 and a 52 week high of $194.27.

Key Stories Impacting FedEx Freight

Here are the key news stories impacting FedEx Freight this week:

• Positive Sentiment: FedEx Freight said it expects revenue to grow 4% to 6% from June 1 through Dec. 31, signaling confidence in demand and the underlying strength of the business after the spinoff. FedEx Freight Guides for Growth After Spinoff from FedEx
• Positive Sentiment: Analysts highlighted the company’s independent setup and long-term opportunities, including expansion into higher-growth areas such as data centers and healthcare, which could support future revenue diversification. FedEx Freight Targets Gains in Data Centers, Health After Spin Off
• Positive Sentiment: Truckload market tightness is helping improve backhaul opportunities and revenue, a favorable operating trend for the freight business. Truckload Tightness Boosts FedEx Freight Backhauls, Revenue
• Positive Sentiment: BMO Capital Markets raised its price target on FedEx Freight to $150 from $140, suggesting improved expectations even though it kept a “market perform” rating. Benzinga report on BMO price target raise
• Neutral Sentiment: The company reported its fourth-quarter and full-year 2026 results, with the market still assessing the quality of earnings and how the standalone business will perform going forward. FedEx Freight Reports Fourth Quarter and Full Fiscal Year 2026 Financial Results
• Negative Sentiment: News that FedEx Freight is trading at a premium relative to BMO’s new target may have added pressure, and some investors remain cautious after concerns about margins tied to the freight spin-off. FedEx falls on lower margins, concerns over Freight spinoff

Wall Street Analyst Weigh In

A number of brokerages have recently issued reports on FDXF. Wolfe Research assumed coverage on FedEx Freight in a research note on Thursday, June 4th. They issued an “outperform” rating and a $180.00 price objective on the stock. Evercore started coverage on FedEx Freight in a report on Thursday, June 4th. They set an “outperform” rating and a $168.00 price target on the stock. Bank of America began coverage on shares of FedEx Freight in a research note on Monday, June 1st. They issued a “buy” rating and a $185.00 price objective for the company. Raymond James Financial started coverage on shares of FedEx Freight in a research report on Wednesday, June 3rd. They set an “outperform” rating and a $180.00 target price on the stock. Finally, Truist Financial started coverage on shares of FedEx Freight in a research note on Tuesday, June 2nd. They set a “hold” rating on the stock. One equities research analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating and four have issued a Hold rating to the company. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $174.71.

FedEx Freight Company Profile

FedEx Freight is the less-than-truckload (LTL) freight transportation arm of FedEx, providing time-definite, regional, and interregional shipping services for commercial customers in North America. The company specializes in moving palletized freight that is too large for parcel shipment but does not require a full truckload, and it offers services designed to help businesses manage supply chain and distribution needs.

As part of the FedEx family of companies, FedEx Freight operates an extensive network of service centers and transportation routes across the United States, Canada, and Mexico.