FedEx Freight Reports Fourth Quarter and Full Fiscal Year 2026 Financial Results

June 26, 2026 - 02:43

MEMPHIS, Tenn., June 25, 2026 -- FedEx Freight, the less-than-truckload division of FedEx Corp., reported its financial results for the fourth quarter and the full fiscal year ending May 31, 2026. The company saw a steady increase in revenue driven by higher shipment volumes and improved yield management across its network.

For the fourth quarter, FedEx Freight reported revenue of $2.3 billion, a 4% increase compared to the same period last year. Operating income rose to $345 million, up from $310 million in the prior year quarter, reflecting ongoing cost control measures and operational efficiencies. The operating margin improved to 15.0%, compared to 14.1% in the fourth quarter of fiscal 2025.

For the full fiscal year 2026, FedEx Freight generated $9.1 billion in revenue, up 3% from $8.8 billion in fiscal 2025. Full-year operating income reached $1.4 billion, compared to $1.3 billion in the prior year. The annual operating margin expanded to 15.4%, up from 14.8% last year.

Company officials attributed the solid performance to a focus on service reliability and strategic pricing. Average daily shipments increased 2% year-over-year in the fourth quarter, while revenue per shipment grew 2.5%. The division also benefited from investments in technology and facility automation, which helped manage costs despite inflationary pressures on labor and fuel.

Looking ahead to fiscal 2027, FedEx Freight expects continued moderate growth in the LTL market. The company plans to further expand its network capacity and enhance service offerings to meet customer demand. Executives noted that while the economic outlook remains uncertain, the division is well-positioned to navigate market fluctuations due to its strong operational foundation and disciplined approach to capital allocation.