FedEx moves to calendar-year reporting after Freight spin-off

FedEx Corp. (FDX) said in an 8-K filing on Oct. 28 that it changed its fiscal year end from May 31 to Dec. 31, effective June 1, 2026. The same day, it completed the spin-off of its less-than-truckload freight business, FedEx Freight, into a new, publicly traded company.

The company will report a seven-month transition period, from June 1 through Dec. 31, 2026, in a Transition Report on Form 10-K. It will report on a calendar-year basis beginning with the fiscal year ending Dec. 31, 2027.

FedEx no longer consolidates FedEx Freight, which is now presented as discontinued operations and is no longer a reportable segment. The company retained a 19.9% ownership interest in FedEx Freight and accounts for it as an equity security at fair value.

FedEx also realigned its reporting. Two new reportable segments, Express U.S. Domestic and Express International, replace the former Federal Express segment. The company said the changes had no impact on its consolidated results or financial position.

The filing includes unaudited supplemental figures for the calendar quarters ended March 31 and June 30, 2026, recast for the new year-end, discontinued operations and segments. The company said these figures are not a restatement and are not indicative of future or annual results.

For the calendar second quarter, total revenue was $22.93 billion and operating income was $1.33 billion. GAAP diluted earnings per share were $25.28, including a $4.49 billion gain on the retained FedEx Freight stake. Excluding that gain, restructuring, exit and other costs, and a retirement plan adjustment, adjusted diluted EPS was $4.98.

For the calendar first quarter, total revenue was $20.79 billion and operating income was $919 million. Adjusted diluted EPS was $3.25, against a GAAP figure of $3.22.

Restructuring, exit and other costs were $82 million in the first quarter and $295 million in the second. The company said these include costs tied to aircraft impairment, the spin-off and the change in fiscal year end.

Separately, FedEx completed the sale of its FedEx Supply Chain business to CMA CGM Group on Oct. 1 for $1.4 billion. The company described the sale as part of a strategic portfolio streamlining effort.

The supplemental figures should be read with FedEx's Annual Report on Form 10-K for the year ended May 31, 2026, the company said.