FedEx Freight debuts as standalone company with bold $8.7B revenue goal
FedEx Freight has officially launched as a standalone company, trading under the ticker FDXF from June 1. The spin-off follows a share distribution to existing FedEx shareholders, who received one FDXF share for every two FDX shares owned. The parent company, FedEx, retains around 20% ownership in the new business. The separation took effect on June 1, with FDXF beginning regular-way trading on the same day. Shareholders of record received their new shares automatically, reflecting the division of FedEx’s freight operations into an independent entity.
FedEx Freight has set ambitious financial targets for its first year. Management forecasts revenue of $8.7 billion and operating income of $1.1 billion for fiscal 2026. Over the medium term, the company expects annual revenue growth of 4%-6% and operating profit expansion of 10%-12%. Analysts have already weighed in on the new stock’s potential. Early when-issued trading placed FDXF at roughly $185 per share. However, some believe fair value could climb to $275 if the company matches the valuation of Old Dominion, a leading less-than-truckload (LTL) operator. Old Dominion currently trades at a forward earnings multiple of nearly 40x, while FedEx trades at around 18x. Meanwhile, the parent company, FedEx, holds a consensus Strong Buy rating from 21 Wall Street analysts. Their average target price for FDX stands at $423.15, reflecting continued confidence in the broader business.
The spin-off marks a new chapter for FedEx Freight as it operates independently under FDXF. Shareholders now hold a direct stake in the freight division, while the parent company retains a significant minority interest. The company’s financial projections and analyst comparisons suggest a focus on growth and valuation potential in the coming years.
