FedEx Freight (NYSE:FDXF) Posts Earnings Results, Beats Expectations By $0.11 EPS

FedEx Freight (NYSE:FDXF) released its quarterly earnings results on Thursday. The company reported $1.49 earnings per share for the quarter, topping the consensus estimate of $1.38 by $0.11, Zacks reports. The firm had revenue of $2.46 billion for the quarter.

Here are the key takeaways from FedEx Freight’s conference call:

• Strong initial standalone results: FedEx Freight generated $3.3 billion in revenue, up 9% year over year, and $510 million in adjusted operating income, up 16%, for the four-month transition period. Adjusted operating margin was 15.5%, with $239 million in free cash flow.
• Outlook raised for the fourth quarter: The company expects revenue of $2.3 billion to $2.37 billion and adjusted operating income of $185 million to $205 million, above its prior expectations. Higher fuel-related yield, improving pricing, and modest volume growth are expected to drive results.
• Pricing and commercial momentum are building: FedEx Freight has renewed approximately 25% of its contractual portfolio with its strongest renewal pricing performance in recent years, while a 6.9% general rate increase takes effect January 8. Management is also targeting higher-value verticals and underpenetrated small and medium-sized customers.
• Cash generation and technology investments support the long-term plan: The company reduced debt by $100 million, lowered gross leverage to 2.8 times, and remains on track for approximately 2.5 times leverage within 12 months of separation. A new Palantir alliance is intended to accelerate AI-driven productivity and network efficiency improvements.
• Near-term cost pressures remain: Adjusted results benefited from strong revenue and fuel trends but were offset by roughly $50 million of performance-based compensation and nearly $30 million of transition-service costs. TSA expenses are expected to remain around $7 million per month into the first half of 2027, while additional standalone and IT costs are weighing on GAAP results.

FedEx Freight Trading Up 15.2%

NYSE FDXF opened at $126.41 on Friday. FedEx Freight has a 12 month low of $103.47 and a 12 month high of $194.27. The business’s 50 day moving average price is $118.84.

Analyst Ratings Changes

Several research firms have recently issued reports on FDXF. Raymond James Financial reiterated an “outperform” rating and issued a $165.00 target price on shares of FedEx Freight in a research note on Thursday, October 15th. Truist Financial decreased their price target on FedEx Freight from $155.00 to $115.00 and set a “hold” rating on the stock in a research report on Wednesday, October 7th. Citizens Jmp assumed coverage on FedEx Freight in a research note on Wednesday, July 15th. They set a “market outperform” rating and a $190.00 price objective for the company. BMO Capital Markets set a $130.00 price objective on shares of FedEx Freight in a report on Wednesday, October 7th. Finally, Stephens began coverage on shares of FedEx Freight in a report on Wednesday, July 8th. They set an “overweight” rating and a $180.00 target price on the stock. One analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $159.00.

Trending Headlines about FedEx Freight

Here are the key news stories impacting FedEx Freight this week:

• Positive Sentiment: Earnings beat expectations: FedEx Freight reported $1.49 in earnings per share versus the $1.38 analyst consensus, with revenue of $2.46 billion. Higher freight yields and fuel surcharges supported revenue, while management raised its transition-period outlook. FDXF Four-Month Transition Period Earnings Beat Estimates on Higher Yields
• Positive Sentiment: Better near-term outlook: The company forecast fourth-quarter adjusted EPS of $0.65-$0.75 and revenue of $2.30-$2.37 billion, with improving volumes, pricing, and expected margin improvement supporting the forecast. FedEx Freight forecasts quarterly earnings above estimates on improving volumes, pricing
• Positive Sentiment: Pricing power remains a key strength: Management highlighted some of its strongest renewal pricing in years, helping offset softer demand and reinforcing expectations for earnings growth during the transition period. FedEx Freight Soars on Raised Outlook
• Positive Sentiment: Analyst support: Analysts cited the quarterly beat and growth targets as reasons for the favorable reaction, helping reinforce investor confidence in the newly spun-off freight carrier. FedEx Freight shares surge as analysts back growth targets
• Neutral Sentiment: Strategic expansion: After initial consolidation following the spinoff, FedEx Freight is evaluating additional opportunities to expand its less-than-truckload network and customer base. FedEx Freight goes hunting after initial consolidation
• Negative Sentiment: Demand remains mixed: Third-quarter shipments dipped slightly, and management expects peak-season volume to be tepid, meaning pricing—not strong volume growth—is currently doing much of the earnings-supporting work. FedEx Freight Q3 shipments dip slightly following spinoff
• Negative Sentiment: Price target reduced: Jefferies lowered its FedEx Freight price target to $180 from $200, signaling more cautious valuation expectations despite the earnings beat. Jefferies Adjusts Price Target on FedEx Freight

Institutional Investors Weigh In On FedEx Freight

A number of institutional investors have recently added to or reduced their stakes in FDXF. State Street Corp acquired a new stake in shares of FedEx Freight during the 2nd quarter worth approximately $723,747,000. Maple Rock Capital Partners Inc. acquired a new position in FedEx Freight in the 2nd quarter valued at $68,207,000. Allianz Asset Management GmbH purchased a new position in shares of FedEx Freight in the second quarter worth about $50,888,000. National Pension Service acquired a new stake in shares of FedEx Freight in the second quarter valued at approximately $26,648,000. Finally, Diamond Hill Capital Management LLC Investment Advisor acquired a new position in shares of FedEx Freight during the 2nd quarter valued at about $19,666,000.

About FedEx Freight

FedEx Freight is a less-than-truckload (LTL) freight transportation company that provides pickup, consolidation, transportation and delivery services for shipments that do not require a full truck. Its customers include businesses across manufacturing, retail, wholesale, healthcare, technology and other industries.

The company offers a range of LTL solutions, including time-definite and day-definite services, standard and economy freight transportation, expedited shipping, volume and multiweight services, and specialized delivery options.