FedEx posts strong earnings results in last quarter with freight business

June 23, 2026 - 18:12

FedEx reported robust fiscal fourth-quarter earnings on Tuesday, marking the last financial period that includes its freight business before the unit is spun off into a separate company. The logistics giant exceeded Wall Street expectations, driven by cost-cutting measures and steady demand in its parcel delivery and freight segments.

The company posted adjusted earnings per share of $5.41, beating analyst estimates of $5.00. Revenue came in at $22.1 billion, slightly above consensus forecasts. FedEx's freight division, which handles less-than-truckload shipping, contributed significantly to the quarter's performance, with operating margins improving on higher shipment volumes and better pricing.

The spin-off of the freight business, announced earlier this year, is part of a broader restructuring aimed at streamlining operations and boosting shareholder value. FedEx executives said the separation remains on track for completion by early next year. The standalone freight company will focus on the growing LTL market, while FedEx Express and FedEx Ground will continue to serve e-commerce and international shipping needs.

For the full fiscal year, FedEx reported revenue of $87.9 billion, a slight decline from the prior year, but profit margins improved due to aggressive cost controls. The company also announced a $1.5 billion share buyback program, signaling confidence in its future prospects. Shares rose more than 3% in after-hours trading following the earnings release.