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FedEx Freight to Spin Off, Targets 12% Profit Growth

4/8/2026

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Story summary
  • FedEx Freight will spin off from FedEx Corporation on June 1, 2026.
  • FedEx Freight projects 10% to 12% profit growth in medium term.
  • FedEx Freight expects 4% to 6% revenue growth in medium term.
  • The unit aims to generate over $1 billion in free cash flow.
  • Incoming CEO John Smith cites 12% operating margin this year on $8.7 billion in revenue, noting growth in electronics and healthcare despite tonnage declines.