$FDXF · FedEx Freight Holding Company, Inc.
FedEx Freight filed its Q3 FY2026 10-Q (period ended September 30, 2026), its first quarterly report as an independent public company following the June 1, 2026 spin-off from FedEx. Revenue rose 8% YoY to $2.442B, but net income plunged 49% to $147M ($0.98 diluted EPS) as $105M in separation costs and $55M in new interest expense replaced prior-year related-party interest income of $98M. The four-month period showed similar dynamics: revenue of $3.281B (+9% YoY) and net income of $230M versus $404M.
- Net income fell 49% YoY to $147M in Q3 FY2026 from $291M, with EPS dropping to $0.98 from $1.95.
- Separation and other costs surged 250% to $105M in the quarter, up from $30M a year earlier.
- Interest expense of $55M replaced $98M in related-party interest income, swinging other income by $150M.
- Revenue grew 8% YoY to $2.442B, driven by Priority (+9.6%) and Economy (+7.3%) service types.
- Allowance for credit losses ballooned to $140M from $12M, with a $28M provision in the quarter.
Extended-hours trading shows FDXF at $113.00, up 3.02% from the regular close of $109.69, suggesting the market had priced in separation-related headwinds and is focusing on the 8% revenue growth.
This is the first clean look at FedEx Freight's stand-alone economics post-spin-off, and the 49% net income drop reveals the true cost of independence.
As a newly independent LTL pure-play following the June 2026 spin-off from FedEx, FDXF's results reflect the structural cost shift from captive subsidiary to stand-alone public company — most visibly in the interest expense replacing intercompany interest income.
Tariff actions by the U.S. and foreign governments are weakening global trade and transportation demand, directly pressuring shipment volumes. The $140M credit-loss allowance (up from $12M) signals deteriorating customer credit quality.