FedEx Freight reported fourth quarter revenue of $2.4 billion, a 4.8% increase year-over-year, and full fiscal year 2026 revenue of $8.8 billion, a 1.1% decrease. The quarterly results were characterized by lower shipment volumes, which were more than offset by higher revenue per shipment and favorable fuel surcharges.
Key Highlights
- Quarterly revenue grew 4.8% to $2.4 billion, driven by an 11.5% increase in revenue per shipment that countered a 5.9% decline in average daily shipments.
- The adjusted operating margin for the quarter was 15.1%, resulting in an adjusted operating ratio of 84.9%, which is a notable improvement over the 20.8% operating margin from the prior year when not adjusted for spin-off costs.
- For the full fiscal year 2026, revenue was $8.8 billion, a 1.1% decrease, with an adjusted operating margin of 12.6%.
- The company introduced guidance for its upcoming seven-month transition period, forecasting revenue growth of 4% to 6% and adjusted EPS of $2.40 to $2.60.