Key facts
- FedEx Freight forecasts revenue growth of 4% to 6% for the seven months ending December 31, 2026.
- Adjusted operating income is expected to grow between 0.8% and 7.5% in the same period.
- The company's Q4 revenue was $2.4 billion, surpassing analyst expectations.
- FedEx Freight reported a 23.9% decrease in adjusted operating income for the latest quarter.
- Projected adjusted operating income for the rest of 2026 is between $605 million and $645 million.
FedEx Freight announced on Thursday that it anticipates revenue growth between 4% and 6% for the seven-month period ending December 31, 2026. This forecast follows the company's recent separation from its parent, FedEx Corp, which was completed on June 1. The Memphis-based provider of less-than-truckload (LTL) services also expects its adjusted operating income to increase by 0.8% to 7.5% during the same period.
The company's revenue for the fourth quarter ending May 31 rose 4.8% to $2.4 billion, exceeding analysts' expectations of $2.26 billion. This increase was attributed to higher fuel surcharges and an increase in weight per shipment. However, quarterly adjusted operating income saw a decline of 23.9%, impacted by costs associated with its separation from FedEx, weaker shipment volumes, and increased wages.
For the remainder of 2026, FedEx Freight projects its adjusted operating income to range between $605 million and $645 million, compared to $600 million in the prior year. The company also forecasts adjusted earnings per share for the June-December period to be between $2.4 and $2.6.
Freight trucking companies have observed improved demand from the industrial sector, with U.S. manufacturing activity showing growth for five consecutive months and reaching a four-year high in May. Freight rates have also climbed recently due to tightened supply resulting from regulatory actions.