American shipping company FedEx has posted its earnings for the fiscal period Q1 2026, disclosing plans to continue with its cost savings program and its goal of spinning off its freight business—also known as FedEx Freight—into a publicly traded company, as per an official press release.
FedEx Freight to be listed under ticker ‘FDXF’
If successful, FedEx Freight will be listed under the stock ticker ‘FDXF’ with shares trading on the NYSE. According to Clearview Market Insights, the U.S. shipping and logistics industry is valued at $1.2 trillion.
The firm reported revenues of $22.2 billion for the first quarter ended 31st August. Operating income was $1.19 billion, representing an operating margin of 5.3%. Net income was $820 million.
Source: Google Finance
FedEx shares closed at $226.50 on Thursday.
The earnings release said FedEx is continuing with its share repurchases, buying back $500 million worth of company stock (2.2 million shares) during the quarter.
“Our earnings growth underscores the success of our strategic initiatives, as we are flexing our network and reducing our cost-to-serve, while further enhancing our value proposition and customer experience,” said FedEx CEO Raj Subramaniam.
The shipping company also said it will be increasing rates on parcel and LTL services by 5.9%. LTL stands for Less-than-Truckload, representing the shipping of items that are too big for parcel shipping but not enough to fill up FedEx trucks.
“Looking ahead, we are prepared to navigate a range of scenarios, while remaining focused on value creation and maintaining a disciplined approach to capital allocation,” said FedEx CFO John Dietrich.