Effective June 1, 2026, FedEx Corporation changed its fiscal year end from May 31 to December 31
FEDEX CORP (FDX) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 SUPPLEMENTAL HISTORICAL FINANCIAL INFORMATION Effective June 1, 2026, FedEx Corporation (“FedEx”) changed its fiscal year end from May 31 to December 31. As a result, FedEx will report operating results covering the seven-month transition period from June 1, 2026 thr
How this was made
The 30-second read
Why it matters
The announcement provides the first public details on the reporting change, which may lead analysts to revise forecasts and could cause short‑term price movement.
Market read
Primary corporate filing that alters reporting periods; modest trading relevance for FedEx and sector peers.
What to watch
Potential cost savings from discontinued operations and transition services agreements may not be fully reflected yet.
FedEx released recast supplemental historical information for the second quarter calendar 2026 following its fiscal year-end change, the FedEx Freight Spin-Off, and new Express U.S. Domestic and Express International segment reporting.
Second-quarter GAAP net income and diluted EPS included a $4,492 million gain on the retained FedEx Freight investment, while adjusted operating income was $1,622 million and adjusted diluted EPS was $4.98. Express U.S. Domestic reported a 9.2% GAAP operating margin, while Express International reported a 1.5% GAAP operating margin.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenue, Second Quarter calendar 2026GAAP | $22.93B | – | – |
| Total operating expenses, Second Quarter calendar 2026GAAP | $21.60B | – | – |
| Salaries and employee benefits, Second Quarter calendar 2026GAAP | $7.55B | – | – |
| Purchased transportation, Second Quarter calendar 2026GAAP | $6.13B | – | – |
| Rentals and landing fees, Second Quarter calendar 2026GAAP | $1.18B | – | – |
| Depreciation and amortization, Second Quarter calendar 2026GAAP | $978M | – | – |
| Fuel, Second Quarter calendar 2026GAAP | $1.34B | – | – |
| Maintenance and repairs, Second Quarter calendar 2026GAAP | $757M | – | – |
| Other, net operating expenses, Second Quarter calendar 2026GAAP | $3.68B | – | – |
| Operating income, Second Quarter calendar 2026GAAP | $1.33B | – | – |
| Operating margin, Second Quarter calendar 2026GAAP | 5.8% | – | – |
| Other retirement plans income, Second Quarter calendar 2026GAAP | $839M | – | – |
| Interest, net, Second Quarter calendar 2026GAAP | −$110M | – | – |
| Other nonoperating, net, Second Quarter calendar 2026GAAP | $4.53B | – | – |
| Total other income (expense), Second Quarter calendar 2026GAAP | $5.26B | – | – |
| Income before income taxes, Second Quarter calendar 2026GAAP | $6.59B | – | – |
| Provision for income taxes, Second Quarter calendar 2026GAAP | $515M | – | – |
| Income from continuing operations, Second Quarter calendar 2026GAAP | $6.07B | – | – |
| Income from discontinued operations, net of taxes, Second Quarter calendar 2026GAAP | $55M | – | – |
| Net income, Second Quarter calendar 2026GAAP | $6.13B | – | – |
| Basic earnings per common share, continuing operations, Second Quarter calendar 2026GAAP | $25.37 | – | – |
| Basic earnings per common share, discontinued operations, Second Quarter calendar 2026GAAP | $0.23 | – | – |
| Basic earnings per common share, Second Quarter calendar 2026GAAP | $25.60 | – | – |
| Diluted earnings per common share, continuing operations, Second Quarter calendar 2026GAAP | $25.05 | – | – |
| Diluted earnings per common share, discontinued operations, Second Quarter calendar 2026GAAP | $0.23 | – | – |
| Diluted earnings per common share, Second Quarter calendar 2026GAAP | $25.28 | – | – |
| Operating income, Second Quarter calendar 2026non-GAAP | $1.62B | – | – |
| Operating margin, Second Quarter calendar 2026non-GAAP | 7.1% | – | – |
| Income taxes, Second Quarter calendar 2026non-GAAP | $399M | – | – |
| Net income, continuing operations, Second Quarter calendar 2026non-GAAP | $1.21B | – | – |
| Diluted earnings per share, continuing operations, Second Quarter calendar 2026non-GAAP | $4.98 | – | – |
| Restructuring, exit and other costs, Second Quarter calendar 2026non-GAAP | $295M | – | – |
| Gain on retained investment in FedEx Freight, Second Quarter calendar 2026non-GAAP | −$4.49B | – | – |
| MTM retirement plans accounting adjustment, Second Quarter calendar 2026non-GAAP | −$604M | – | – |
| Dividends declared per common share, Second Quarter calendar 2026GAAP | $1.19 | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Express U.S. Domestic segment, Second Quarter calendar 2026U.S. priority revenue was $3,121 million, U.S. deferred revenue was $1,441 million, U.S. ground revenue was $9,777 million, U.S. Freight revenue was $349 million, and other revenue was $239 million. | $14.93B | – | – |
| Express International segment, Second Quarter calendar 2026International priority package revenue was $2,694 million, international economy package revenue was $1,607 million, international domestic package revenue was $1,176 million, international priority freight revenue was $743 million, international economy freight revenue was $613 million, and other revenue was $502 million. | $7.33B | – | – |
| Corporate, other, and eliminations, Second Quarter calendar 2026Operating income was $(160) million. | $668M | – | – |
Capital returns
- Dividends declared per common share were $1.19 in the Second Quarter calendar 2026.
- On October 1, 2026, FedEx completed the sale of its FedEx Supply Chain business to CMA CGM Group for $1.4 billion.
What drove it
- Express U.S. Domestic segment operating income was $1,379 million and operating margin was 9.2%; adjusted operating income was $1,530 million and adjusted operating margin was 10.3%.
- Express International segment operating income was $108 million and operating margin was 1.5%; adjusted operating income was $233 million and adjusted operating margin was 3.2%.
- Express U.S. Domestic total U.S. domestic average daily package volume was 14,317 thousand and total U.S. domestic composite yield was $15.65.
- Express International total average daily package volume was 2,854 thousand and composite package yield was $29.98.
- FedEx completed the FedEx Freight Spin-Off on June 1, 2026 and retained a 19.9% ownership interest in FedEx Freight, accounted for as an equity security recorded at fair value.
Concerns
- Express International GAAP operating margin was 1.5% in the Second Quarter calendar 2026.
- GAAP income from continuing operations of $6,074 million included a $4,492 million gain on the retained investment in FedEx Freight and a $604 million MTM retirement plans accounting adjustment in the non-GAAP reconciliation.
- FedEx stated that some costs retained after the FedEx Freight Spin-Off are stranded costs, with reductions expected through transition services agreements and cost management.
- Restructuring, exit and other costs were $295 million in the Second Quarter calendar 2026.
What to watch
- Progress in reducing stranded costs retained following the FedEx Freight Spin-Off through transition services agreements and cost management.
- Execution of Network 2.0, Tricolor, global transformation, and network optimization initiatives.
- Express International operating income and margin following the reported $108 million of operating income and 1.5% operating margin.
- The seven-month Transition Period from June 1, 2026 through December 31, 2026, which FedEx expects to report in a Transition Report on Form 10-K.
- The effects of the October 1, 2026 sale of FedEx Supply Chain, which is no longer included in Corporate, other, and eliminations.
Analysis
This filing supplies recast historical information rather than a current-period earnings release. FedEx changed its fiscal year-end from May 31 to December 31 and will report a seven-month Transition Period from June 1, 2026 through December 31, 2026. The figures also recast FedEx Freight as discontinued operations after the June 1, 2026 Spin-Off and establish Express U.S. Domestic and Express International as new reportable segments.
For the Second Quarter calendar 2026, total revenue was $22,930 million, compared with $20,788 million in the First Quarter calendar 2026. GAAP operating income was $1,327 million and GAAP operating margin was 5.8%, versus $919 million and 4.4%, respectively, in the First Quarter calendar 2026. Adjusted operating income was $1,622 million and adjusted operating margin was 7.1%, with $295 million of restructuring, exit and other costs excluded.
The U.S. Domestic business reported $14,927 million of revenue, $1,379 million of GAAP operating income, and a 9.2% GAAP operating margin. Its total U.S. domestic average daily package volume was 14,317 thousand and total U.S. domestic composite yield was $15.65. International reported $7,335 million of revenue, but its $108 million of GAAP operating income and 1.5% GAAP operating margin remain the key segment-level contrast with U.S. Domestic. International total average daily package volume was 2,854 thousand, while composite package yield was $29.98.
Reported GAAP earnings were materially affected by items outside core operations. Income from continuing operations was $6,074 million and diluted EPS from continuing operations was $25.05. The non-GAAP reconciliation identifies a $4,492 million gain on the retained FedEx Freight investment and a $604 million MTM retirement plans accounting adjustment. On the adjusted continuing-operations basis, net income was $1,207 million and diluted EPS was $4.98.
The release contains no forward financial guidance, cash flow figures, cash balance, debt balance, or share-repurchase data. The main reported strategic developments are the FedEx Freight separation, the expected reduction of retained stranded costs through transition services agreements and cost management, and the October 1, 2026 sale of FedEx Supply Chain to CMA CGM Group for $1.4 billion.
Not in the filing
stated, not guessed- Forward revenue guidance
- Forward gross margin guidance
- Forward operating expense guidance
- Forward tax-rate guidance
- Prior guidance comparison
- Year-over-year comparisons for reported metrics
- Gross profit and gross margin
- Operating cash flow
- Free cash flow
- Cash balance
- Debt balance
- Share repurchases
- Named executive quotes
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was checked against the filing text, and a metric whose value, prior period and change do not add up is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
FedEx filed a Form 8‑K detailing its fiscal‑year transition and the recent spin‑off of its freight business.
Ticker impact
FedEx Corp filed an 8‑K announcing it will change its fiscal year end to Dec 31, 2026 and report a seven‑month transition period, following its FedEx Freight spin‑off.
potential modest pressure as the market digests the new reporting calendar
The filing is a primary disclosure of a structural reporting change; investors typically re‑price guidance after such announcements.
Market effects
Logistics and transportation analysts will need to adjust FY models for FedEx and peers.
U.S. logistics sector may see slight valuation adjustments.
Limited; primarily affects FedEx and its direct competitors.
Counterpoint
The change could be seen as a catalyst for upside if the new calendar aligns better with peak shipping seasons.
Key entities
- companyFedEx Corp
U.S. logistics and delivery services provider.
- spin‑offFedEx Freight
Newly independent less‑than‑truckload freight business.
