FedEx Completes FedEx Freight Spin-Off and Shifts to Calendar Year Reporting

FedEx Freight Separation Creates Two Independent Companies

On June 1, 2026, FedEx Corporation successfully separated its less-than-truckload freight transportation services into a new, publicly traded entity known as FedEx Freight. The spin-off included the FedEx Freight business as well as related operations such as FedEx Custom Critical, Inc. and LTL Select. This structural change means that FedEx will no longer consolidate the FedEx Freight business within its financial statements, and FedEx Freight is no longer presented as a reportable segment for the parent company.

The separation marks a significant milestone in FedEx's corporate strategy, allowing each company to operate independently and pursue distinct business objectives. For FedEx, the completion of the spin-off fundamentally alters the composition of its revenue streams and operating segments. Investors will need to recognize that historical financial comparisons with periods prior to June 1, 2026 will need to account for the exclusion of the FedEx Freight business to accurately assess FedEx's ongoing operational performance.

Fiscal Year End Change to Calendar Year Basis

Concurrent with the FedEx Freight spin-off, FedEx changed its fiscal year end from May 31 to December 31, effective June 1, 2026. This transition to a calendar year reporting schedule represents a fundamental change in how FedEx will organize and report its financial results to shareholders and regulators. The company will report its first 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.

Following the transition period, FedEx will shift to standard calendar-year financial reporting, with subsequent annual reports covering the twelve-month periods ending December 31. Beginning with fiscal year 2027, FedEx's annual reporting will align with the calendar year, eliminating the prior May 31 year-end that had been used for many years. This change is expected to simplify investor understanding of FedEx's financial performance and may enhance comparability with industry peers that operate on a calendar-year basis.

Reorganization of Reporting Segments Following the Spin-Off

As part of the organizational realignment following the FedEx Freight spin-off, FedEx restructured its internal reporting and management framework. The company identified two new reportable segments: Express U.S. Domestic and Express International. These segments were previously combined within the single Federal Express reportable segment prior to the reorganization. The disclosure indicates that this change reflects a realignment of FedEx's organizational structure and the reporting information regularly provided to the company's chief operating decision maker for assessing performance and allocating resources.

The segment restructuring provides a more granular view of FedEx's operations by separating domestic and international express delivery services into distinct reporting units. This new segmentation structure allows investors and management to evaluate the performance of each geographic market segment independently, potentially offering greater transparency into how FedEx's two primary express business lines are performing relative to each other. The changes took effect beginning the first quarter of the transition period following the spin-off completion.

Supplemental Historical Financial Information Provided to Investors

To facilitate investor understanding of how the fiscal year change, the FedEx Freight spin-off, and the segment reorganization affect comparisons of historical financial results, FedEx has provided supplemental historical financial information. The disclosure states that this supplemental information reflects the change in fiscal year end, the presentation of the FedEx Freight business as discontinued operations, and the presentation of FedEx's new reportable segments. This supplemental data is contained in Exhibit 99.1 of the disclosure and is intended for informational and comparative purposes.

The filing emphasizes that the supplemental historical financial information does not represent a restatement or reissuance of previously issued financial statements and is not indicative of future or annual results. Investors are advised to read this supplemental information in conjunction with FedEx's Annual Reports on Form 10-K for fiscal years ended May 31, 2026, May 31, 2025, and May 31, 2024, as well as the company's quarterly reports on Form 10-Q covering the periods ended February 28, 2026, November 30, 2025, August 31, 2025, and earlier dates. This comprehensive historical context is intended to help investors adjust for the impact of these structural and reporting changes when analyzing FedEx's financial trends.

Impact on Consolidated Financial Statements

The spin-off of FedEx Freight and the fiscal year end change have material implications for how FedEx's consolidated financial statements will appear in future reporting periods. Beginning with the transition period covering June 1, 2026 through December 31, 2026, FedEx will no longer consolidate the FedEx Freight business within its balance sheet, income statement, or cash flow statement. This means that all financial metrics historically attributed to the FedEx Freight segment, including its revenues, operating expenses, and profitability, will be excluded from FedEx's ongoing consolidated results.

The exclusion of FedEx Freight's financial performance from consolidated results will result in lower consolidated revenues and operating income compared to periods when FedEx Freight was part of the organization. Investors comparing FedEx's financial performance year-over-year or assessing trends in profitability and return on assets must account for this significant structural change. The supplemental information provided is designed to allow for meaningful comparisons by showing adjusted historical results that reflect how FedEx would have looked had the spin-off and segment restructuring been in place during prior periods.

Transition Report and Future Annual Reporting Calendar

FedEx will file a Transition Report on Form 10-K covering the seven-month transition period from June 1, 2026 through December 31, 2026. This abbreviated reporting period bridges the change from the prior May 31 fiscal year end to the new December 31 calendar year end. The transition report will present FedEx's financial results under the new segment structure and will reflect the elimination of the FedEx Freight business as a consolidated subsidiary. Following the transition period, FedEx will return to annual reporting based on the standard twelve-month calendar year.

Beginning with fiscal year 2027, FedEx will file its Annual Report on Form 10-K for the full calendar year ending December 31, 2027, and will continue with annual reports on a calendar-year basis thereafter. This shift to calendar-year reporting is expected to provide clearer alignment with the financial reporting schedules of many of FedEx's peers and may simplify comparisons for investors tracking the company's performance against industry benchmarks. The company will also file quarterly reports on Form 10-Q for the quarters ending March 31, June 30, and September 30 in future years, following a standard quarterly calendar schedule.

Non-GAAP Supplemental Information and Investor Context

The disclosure notes that supplemental information being provided includes certain non-GAAP supplemental information alongside the fiscal year end change and discontinued operations presentation. The company has emphasized that this supplemental data is for informational and comparative purposes only and should be read in conjunction with previously filed financial statements and reports. Investors should recognize that while this supplemental information can aid in understanding the company's underlying performance trends, it is not prepared in accordance with U.S. generally accepted accounting principles and may not be directly comparable to similar metrics reported by other companies.

The supplemental historical financial information does not constitute a restatement of FedEx's previously reported results and investors are cautioned against treating it as a revision of historical financial data. Rather, it is offered as a tool to help stakeholders understand how FedEx's financial position and performance would have looked had the organizational changes and reporting segment realignment been in effect during earlier periods. This approach allows for more transparent year-over-year and period-over-period comparisons in the context of the company's new structure.

Strategic Implications of the Dual Transformation

The simultaneous completion of the FedEx Freight spin-off and the shift to calendar-year reporting represents a comprehensive transformation of FedEx's corporate structure and financial reporting framework. The separation of the less-than-truckload freight business allows FedEx to focus its resources on express delivery services, which includes both domestic and international operations. By dividing the Federal Express segment into two distinct reportable segments—Express U.S. Domestic and Express International—FedEx provides investors with clearer visibility into the performance drivers of each geographic market.

The move to calendar-year reporting aligns FedEx's financial calendar with standard market practices and may facilitate investor comparisons and analysis. This dual transformation is expected to enhance the clarity and accessibility of FedEx's financial reporting while allowing each company created by the spin-off—FedEx and FedEx Freight—to optimize its reporting and management structure for its respective business model. Investors should monitor the transition period and subsequent quarterly and annual reports to understand how these changes affect FedEx's financial metrics and operational performance compared to prior periods.

Investor Considerations and Forward-Looking Reporting Framework

Investors analyzing FedEx's financial performance must exercise care when making comparisons between periods before and after June 1, 2026, as the exclusion of the FedEx Freight business and the segment reorganization will materially affect reported results. Revenue, operating income, and other financial metrics will be lower on a consolidated basis following the spin-off, but this change reflects structural transformation rather than operational decline. The supplemental information provided in the company's disclosure is intended to assist investors in making appropriate adjustments and drawing meaningful conclusions about FedEx's underlying operational trends.

As FedEx transitions to its new reporting structure and calendar-year reporting basis, investors should become familiar with the new segment definitions and the presentation of FedEx Freight as discontinued operations in the transition report and beyond. The company's Transition Report on Form 10-K and subsequent quarterly and annual reports will provide detailed financial data under the new framework. Investors are encouraged to review the supplemental historical financial information alongside these formal filings to develop a complete understanding of FedEx's financial position and performance trajectory following these significant organizational changes.