FedEx Finalizes FedEx Freight Spin-Off and Adopts Calendar Year Fiscal Reporting

FedEx Freight Spin-Off Establishes Two Separate Public Companies

On June 1, 2026, FedEx Corporation successfully spun off its less-than-truckload freight transportation operations into a new publicly traded company named FedEx Freight. This separation included FedEx Freight along with related units such as FedEx Custom Critical, Inc. and LTL Select. As a result, FedEx no longer consolidates FedEx Freight within its financial statements, and FedEx Freight is removed as a reportable segment for the parent company.

This spin-off represents a pivotal shift in FedEx’s corporate strategy, enabling both FedEx and FedEx Freight to pursue distinct operational goals independently. Consequently, FedEx’s revenue composition and segment reporting have fundamentally changed. Investors should consider that historical financial comparisons prior to June 1, 2026, must adjust for the exclusion of FedEx Freight to accurately evaluate FedEx’s ongoing business performance.

Transition to Calendar Year Fiscal Reporting

Simultaneously with the spin-off, FedEx modified its fiscal year end from May 31 to December 31, effective June 1, 2026. This transition to a calendar year reporting cycle marks a significant change in the company’s financial reporting approach to shareholders and regulatory bodies. FedEx will issue its first financial results under the new fiscal calendar in a Transition Report on Form 10-K, covering the seven-month period from June 1, 2026, through December 31, 2026.

After this transition period, FedEx will adopt a standard calendar-year reporting schedule, with annual reports reflecting the twelve-month periods ending December 31. Starting with fiscal year 2027, FedEx’s annual filings will align with the calendar year, replacing the longstanding May 31 fiscal year end. This adjustment is expected to enhance investor clarity and improve comparability with industry peers operating on a calendar-year basis.

New Reporting Segments Following Spin-Off

Post spin-off, FedEx restructured its internal reporting framework, establishing two new reportable segments: Express U.S. Domestic and Express International. Previously, these were combined within the single Federal Express segment. This reorganization aligns with FedEx’s updated management structure and reporting to the chief operating decision maker for performance evaluation and resource allocation.

The segmentation provides investors and management with a more detailed perspective by separating domestic and international express delivery operations. This enhanced granularity facilitates independent performance assessment of each geographic segment. These changes took effect starting with the first quarter of the transition period after the spin-off.

Supplemental Historical Financial Data for Investor Insight

To assist investors in understanding the effects of the fiscal year change, FedEx Freight spin-off, and segment reorganization on historical financial comparisons, FedEx has released supplemental historical financial information. This data reflects the fiscal year end adjustment, FedEx Freight’s classification as discontinued operations, and the new segment presentation. The supplemental data is included in Exhibit 99.1 of the disclosure and serves informational and comparative purposes.

FedEx clarifies that this supplemental information does not constitute a restatement or reissuance of previously reported financial statements and does not predict future results. Investors are encouraged to review this supplemental data alongside FedEx’s Annual Reports on Form 10-K for fiscal years ended May 31, 2026, 2025, and 2024, as well as quarterly reports on Form 10-Q for periods ended February 28, 2026, November 30, 2025, August 31, 2025, and earlier. This comprehensive context helps investors adjust analyses for the structural and reporting changes.

Effects on Consolidated Financial Statements

The FedEx Freight spin-off and fiscal year end change significantly impact FedEx’s consolidated financial statements in future reports. From the transition period beginning June 1, 2026, through December 31, 2026, FedEx will exclude FedEx Freight from its balance sheet, income statement, and cash flow statement. All financial metrics previously attributed to FedEx Freight—including revenues, expenses, and profitability—will no longer be consolidated.

This exclusion will reduce consolidated revenues and operating income compared to periods when FedEx Freight was included. Investors analyzing year-over-year financial trends must account for this structural change. The supplemental information provided enables meaningful historical comparisons by presenting adjusted results as if the spin-off and segment restructuring had been in place previously.

Transition Report and Future Reporting Schedule

FedEx will submit a Transition Report on Form 10-K covering the seven-month period from June 1, 2026, to December 31, 2026. This report bridges the shift from the May 31 fiscal year end to the new December 31 calendar year end. It will present financial results under the new segment structure and exclude FedEx Freight as a consolidated subsidiary. Thereafter, FedEx will resume annual reporting based on the standard twelve-month calendar year.

Beginning with fiscal year 2027, FedEx’s Annual Report on Form 10-K will cover the full calendar year ending December 31, 2027, and continue on a calendar-year basis. This alignment is expected to improve comparability with peer companies and simplify investor analysis. Quarterly reports on Form 10-Q will follow a standard schedule for quarters ending March 31, June 30, and September 30.

Non-GAAP Supplemental Details and Investor Guidance

The company’s disclosure includes non-GAAP supplemental information related to the fiscal year end change and discontinued operations presentation. FedEx emphasizes that this information is for comparative and informational use only and should be reviewed alongside previously filed financial statements. Investors should note that non-GAAP metrics are not prepared under U.S. GAAP and may not be comparable to similar data from other companies.

This supplemental data does not restate FedEx’s prior results but aids stakeholders in understanding how FedEx’s financial position and performance would appear if the organizational and segment changes had been effective earlier. This approach promotes transparent period-over-period comparisons within the new corporate structure.

Strategic Impact of FedEx’s Dual Transformation

The concurrent FedEx Freight spin-off and shift to calendar-year reporting represent a comprehensive transformation of FedEx’s corporate and financial reporting framework. Separating the less-than-truckload freight business enables FedEx to concentrate on express delivery services, both domestic and international. By splitting the former Federal Express segment into Express U.S. Domestic and Express International, FedEx offers investors enhanced insight into the drivers of each geographic market.

Adopting calendar-year reporting aligns FedEx’s financial calendar with industry norms, facilitating easier peer comparisons and investor analysis. This dual transformation is expected to improve financial reporting clarity and allow both FedEx and FedEx Freight to optimize their management and reporting structures according to their distinct business models. Investors should closely monitor the transition and subsequent filings to assess the impact on FedEx’s financial and operational metrics.

Investor Considerations for New Reporting Framework

Investors evaluating FedEx’s financial results should exercise caution when comparing periods before and after June 1, 2026, due to the exclusion of FedEx Freight and segment reorganization. Consolidated revenues and operating income will be lower post-spin-off, reflecting structural changes rather than operational declines. The supplemental information provided assists investors in making necessary adjustments and drawing informed conclusions about FedEx’s core operational trends.

As FedEx transitions to the new reporting segments and calendar-year fiscal schedule, investors should familiarize themselves with the updated segment definitions and the presentation of FedEx Freight as discontinued operations in the Transition Report and future filings. Reviewing supplemental historical data alongside official reports will provide a comprehensive understanding of FedEx’s financial position and performance trajectory following these significant organizational changes.