FedEx Corp Recasts Historical Financials Following FedEx Freight Spin-Off and Year-End Change

Summary of Event

On October 28, 2026, FedEx Corporation filed a Current Report on Form 8-K under Item 2.02 (Results of Operations and Financial Condition) and Item 9.01 (Financial Statements and Exhibits) providing supplemental recast historical financial results.

Key Highlights

1. Fiscal Year End Change:

   • Effective June 1, 2026, FedEx transitioned its fiscal year end from May 31 to December 31.
   • FedEx is reporting a seven-month transition period from June 1, 2026, through December 31, 2026, on Form 10-K, moving to standard calendar-year reporting beginning January 1, 2027.

2. FedEx Freight Spin-Off:

   • Completed on June 1, 2026, separating the less-than-truckload (LTL) transportation operations (including FedEx Custom Critical, Inc. and LTL Select) into an independent public company.
   • FedEx Freight results are now accounted for as discontinued operations across all presented historical periods.

3. Segment Realignment:

   • FedEx restructured its reporting segments into two primary segments: Express U.S. Domestic and Express International (previously grouped under Federal Express).
   • FedEx Logistics shifted into the Express International segment.

4. Strategic Divestiture:

   • On October 1, 2026, FedEx completed the sale of FedEx Supply Chain to CMA CGM Group for $1.4 billion.

Financial Context (Recast Calendar Quarters 2026)

• Q1 2026 (Quarter Ended March 31, 2026):
  • Total Revenue: $20,788 million
  • Operating Income: $919 million
  • Net Income: $776 million (Continuing: $719M, Discontinued: $57M)
  • Basic EPS: $3.26 ($3.02 continuing, $0.24 discontinued)
• Q2 2026 (Quarter Ended June 30, 2026):
  • Total Revenue: $22,930 million
  • Operating Income: $1,327 million
  • Net Income: $6,129 million (Continuing: $6,074M, Discontinued: $55M, boosted by $4,533 million in other nonoperating net income)
  • Basic EPS: $25.60 ($25.37 continuing, $0.23 discontinued)