At a glance
Fedex Freight Holding Co., Inc. is worth $19.71B, about 30 times its fiscal 2026 earnings. Revenue fell 1.1% to $8.79B in fiscal 2026, with 7.4% kept as profit. It pays a dividend, and returned $48.0M to shareholders in dividends and buybacks over FY2024–FY2026.
The business in plain English
FedEx Freight is the largest less-than-truckload (LTL) carrier in North America. LTL carriers move shipments too small to fill a trailer. They collect freight from businesses of all sizes and sort it through terminals onto shared trucks. Prices depend on where a shipment starts and ends, its freight class and its weight. As of June 1, 2026, the Memphis-based company had about 40,000 employees and roughly 355 terminals. Its network covered 98% of U.S. ZIP Codes, plus Canada and Mexico.
It sells two services. FedEx Freight Priority is the premium option. It has published delivery times, such as next business day for trips up to 600 miles, backed by a money-back guarantee. Priority brought in $5.56 billion, or 63.2% of the $8.8 billion in revenue for the fiscal year ended May 31, 2026. FedEx Freight Economy is slower and lower cost, typically three to six days. It earned $2.83 billion, or 32.1%. Other revenue made up 4.6%. The company also runs FedEx Custom Critical, a nonstop expedited service for urgent or high-value freight.
FedEx Freight was part of FedEx until June 1, 2026. On that date, FedEx distributed 80.1% of the company's shares to FedEx stockholders, and the stock began trading on the NYSE as FDXF. It still uses the FedEx name under a license from Federal Express, a FedEx subsidiary.
Price history
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FDXF — over the year to Nov 2, 2026, total return with dividends reinvested.
How it makes money
By product or service
| Priority | $5.56B | 63.2% |
| Economy | $2.83B | 32.1% |
| Other | $408.0M | 4.6% |
Latest results
- In Q1 FY2027 (ended Sep 30, 2026), revenue was $2.44B, up 8.1% from a year earlier, and net income was $147.0M (-49.5%).
- For fiscal 2026, revenue was $8.79B (-1.1% year over year) with a 7.4% net margin.
Financial health check
| Operating margin | 6.1% watch |
|---|---|
| Free cash flow margin | -2.4% weak |
| Return on assets (FY2026) | 9.5% good |
| Net cash (cash minus debt) | $-3.81B weak |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2024 | $9.42B | $1.57B | $1.08B |
| FY2025 | $8.89B | $1.35B | $1.09B |
| FY2026 | $8.79B | $655.0M | $-212.0M |
Valuation snapshot
| Market value | $19.71B |
|---|---|
| P/E ratio | 30.1 |
| Dividend yield | None |
Rank among 1514 US companies
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| FDXF price data to Nov 2, 2026 | -30.0% | — | — | — | — |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Before this security existed |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Before this security existed |
Insider activity
Form 4 filings from 2025-10-30 to 2026-10-30 (25 read): 0 open-market purchases and 0 sales ($0.00).
Who owns it
Large shareholders (13G filings)
| FedEx Corporation | 19.9% | Jun 30, 2026 |
| BlackRock, Inc. | 5.9% | Sep 30, 2026 |
| Vanguard Capital Management | 5.5% | Jun 30, 2026 |
What could go wrong
- Heavy debt from the spin-off. The company took on significant debt in the spin-off. As of May 31, 2026, total debt was about $4.26 billion against $251 million in cash, which could limit financial and operating flexibility.
- Spin-off could be ruled taxable. If the spin-off were found taxable for U.S. federal income tax purposes, FedEx Freight could face significant liabilities. Restrictions agreed to keep it tax-free also limit some strategic and operating choices.
- Still tied to FedEx's brand and services. The FedEx Freight name is licensed from Federal Express, and FedEx provides transition services. Bad publicity about FedEx could hurt the brand, and standalone costs may be higher or last longer than expected.
- Large share sales after the spin-off. FedEx held 19.9% of the shares as of June 30, 2026. Substantial sales by FedEx or other large holders could push the price down or make it more volatile.
- Driver availability, labor costs and unions. The business depends on attracting and keeping drivers. Rising wages, potential unionization, labor disruptions or federal safety-scoring rules for carriers and drivers could raise costs, hurt service or slow growth.
- Freight volumes rise and fall with the economy. Trucking is cyclical: fewer goods produced means fewer shipments. Tariffs, weaker U.S. imports since late 2022, and production moving closer to customers can cut volumes and revenue per shipment.
Recent events
- Quarterly results released
- Shareholder nomination deadline; Other company announcement
- Other company announcement
- Quarterly results released
- Executive or board change
- Quarterly results released
- Major agreement signed; New debt or financial obligation; Change to shareholder rights; Change in control; Executive or board change; Bylaws or fiscal year changed; Code of ethics changed; Other company announcement
- Executive or board change
- Other company announcement
For income and retirement investors
FedEx Freight has no public dividend track record. Its shares began trading on June 1, 2026, so there is no streak of increases. For the fiscal year ended May 31, 2026, it reported $48 million in dividends paid. That was about $0.32 per share, or 7.3% of earnings. Free cash flow (cash left after running and investing in the business) was negative $212 million, so it did not cover those payments. No share buybacks were reported for fiscal 2024 through 2026. For an income investor, that means a small, unproven payout from a company with about $4.26 billion of debt and $251 million in cash as of May 31, 2026.
The shares did not trade during the 2008 financial crisis, the 2020 COVID crash or the 2022 bear market, so there is no downturn record. In their first months of trading, the shares fell 42.5% year to date as of October 28, 2026. A single stock carries more risk than a diversified fund.
Questions investors ask
How does FedEx Freight make money?
FedEx Freight makes money by charging businesses to move less-than-truckload (LTL) shipments across North America. These are loads too small to fill a trailer. Revenue was $8.8 billion in the fiscal year ended May 31, 2026. The premium FedEx Freight Priority service, with faster published delivery times and a money-back guarantee, brought in 63.2%. The lower-cost FedEx Freight Economy service brought in 32.1%, and other services 4.6%. Prices depend on a shipment's origin, destination, freight class and weight.
Is FedEx Freight still owned by FedEx?
Only partly. FedEx Freight became an independent, publicly traded company on June 1, 2026. On that date, FedEx distributed 80.1% of FedEx Freight's shares to FedEx stockholders. FedEx held the remaining 19.9% as of June 30, 2026. The company still uses the FedEx and FedEx Freight names under a trademark license from Federal Express, a FedEx subsidiary, and FedEx provides some transition services. Bad publicity about FedEx could still affect FedEx Freight's reputation.
Does FedEx Freight pay a dividend?
Its filings show a dividend, but there is no track record yet. For the fiscal year ended May 31, 2026, just before the shares began trading on June 1, 2026, the company reported $48 million in dividends paid. That was about $0.32 per share, or 7.3% of earnings. Free cash flow was negative $212 million that year, so free cash flow did not cover the payment. There is no streak of increases, and no share buybacks were reported.
How much debt does FedEx Freight have?
FedEx Freight carries significant debt. As of May 31, 2026, total debt was about $4.26 billion, compared with $251 million in cash and investments. Shareholders' equity, or assets minus liabilities, was negative $497 million. The company took on significant debt in connection with its spin-off from FedEx. Its annual report warns that this debt could limit its financial and operating flexibility.
How has FDXF stock performed since the spin-off?
The shares fell sharply in their first months. FDXF began trading on the NYSE on June 1, 2026. As of October 28, 2026, the stock was down 42.5% year to date and 28.3% over three months. Its price-to-earnings (P/E) ratio, the share price divided by a year's earnings per share, was 24.7. That was based on fiscal 2026 diluted earnings of $4.38 per share, down from $9.00 the year before. A few months of trading say little about long-term returns.