Twelve Months Ended December 31, 2025
Filed Aug 6, 2026Full-year revenue and net income were lower than 2024, while fourth-quarter separation and other expense drove an operating loss.
Revenue was $ 8,778 versus $ 9,092, operating income was $ 1,022 versus $ 1,532, and net income was $ 1,059 versus $ 1,440. Fourth-quarter operating income was (14), including $ 176 of separation and other expense.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenue (In millions)GAAP | $ 8,778 | – | – |
| Salaries, wages, and benefits (In millions)GAAP | 4,206 | – | – |
| Operating supplies and expenses (In millions)GAAP | 1,845 | – | – |
| Purchased transportation (In millions)GAAP | 803 | – | – |
| Depreciation and amortization (In millions)GAAP | 472 | – | – |
| Insurance and claims (In millions)GAAP | 155 | – | – |
| Operating taxes and licenses (In millions)GAAP | 69 | – | – |
| Separation and other (In millions)GAAP | 206 | – | – |
| Total operating expenses (In millions)GAAP | 7,756 | – | – |
| Operating income (In millions)GAAP | 1,022 | – | – |
| Related party interest income (In millions)GAAP | 373 | – | – |
| Other, net (In millions)GAAP | 9 | – | – |
| Total other income (In millions)GAAP | 382 | – | – |
| Income before income taxes (In millions)GAAP | 1,404 | – | – |
| Provision for income taxes (In millions)GAAP | 345 | – | – |
| Net income (In millions)GAAP | $ 1,059 | – | – |
| Basic earnings per shareGAAP | $ 7.08 | – | – |
| Diluted earnings per shareGAAP | $ 7.08 | – | – |
| Weighted-average shares outstanding: BasicGAAP | 149,505,248 | – | – |
| Weighted-average shares outstanding: DilutedGAAP | 149,505,248 | – | – |
| Operating daysother | 253 | – | – |
| Total shipmentsother | 22,362,881 | – | – |
| Total tonnageother | 10,309,718 | – | – |
| Tonnage per dayother | 40,750 | – | – |
| Average daily shipments: Priorityother | 60,784 | – | – |
| Average daily shipments: Economyother | 27,607 | – | – |
| Total average daily shipmentsother | 88,391 | – | – |
| Weight per shipment (pounds): Priorityother | 933 | – | – |
| Weight per shipment (pounds): Economyother | 897 | – | – |
| Composite weight per shipmentother | 922 | – | – |
| Average length of haul (miles): Priorityother | 920 | – | – |
| Average length of haul (miles): Economyother | 1,163 | – | – |
| Composite average length of haulother | 994 | – | – |
| Priority revenue per shipmentGAAP | $ 359.77 | – | – |
| Economy revenue per shipmentGAAP | $ 407.09 | – | – |
| Composite revenue per shipmentGAAP | $ 374.55 | – | – |
| Priority revenue per shipment, excluding fuel surchargesnon-GAAP | $ 301.99 | – | – |
| Economy revenue per shipment, excluding fuel surchargesnon-GAAP | $ 340.91 | – | – |
| Composite revenue per shipment, excluding fuel surchargesnon-GAAP | $ 314.15 | – | – |
| Priority revenue per hundredweightGAAP | $ 38.54 | – | – |
| Economy revenue per hundredweightGAAP | $ 45.39 | – | – |
| Composite revenue per hundredweightGAAP | $ 40.62 | – | – |
| Priority revenue per hundredweight, excluding fuel surchargesnon-GAAP | $ 32.35 | – | – |
| Economy revenue per hundredweight, excluding fuel surchargesnon-GAAP | $ 38.01 | – | – |
| Composite revenue per hundredweight, excluding fuel surchargesnon-GAAP | $ 34.07 | – | – |
What drove it
- Total shipments were 22,362,881 versus 23,071,534, and total tonnage was 10,309,718 versus 10,712,940.
- Composite revenue per shipment excluding fuel surcharges was $ 314.15 versus $ 313.80.
- Priority revenue per hundredweight excluding fuel surcharges was $ 32.35 versus $ 31.61.
- Separation and other expense was 206 for the twelve months ended December 31, 2025.
Concerns
- Operating income was 1,022 versus 1,532 despite total other income of 382.
- Fourth-quarter revenue was $ 2,068 versus $ 2,132 in the prior-year fourth quarter.
- Fourth-quarter operating income was (14), compared with 255 in the prior-year fourth quarter.
- Fourth-quarter separation and other expense was 176.
- Economy revenue per hundredweight excluding fuel surcharges was $ 38.01 versus $ 39.00.
What to watch
- Total shipments, total tonnage, and tonnage per day.
- Composite revenue per shipment excluding fuel surcharges and composite revenue per hundredweight excluding fuel surcharges.
- Separation and other expense.
- Operating income following the fourth-quarter operating loss.
- Due to Parent, net, which was $ 1,324 at December 31, 2025.
Balance sheet and cash flow
- Cash: $ 100 at December 31, 2025; $ 76 at December 31, 2024.
- Current portion of long-term debt: $ 28 at December 31, 2025; $ 1 at December 31, 2024.
- Long-term debt, less current portion: $ 147 at December 31, 2025; $ 38 at December 31, 2024.
- Due to Parent, net: $ 1,324 at December 31, 2025; $ 727 at December 31, 2024.
- Total assets: $ 5,988 at December 31, 2025; $ 5,032 at December 31, 2024.
- Total current liabilities: $ 2,149 at December 31, 2025; $ 1,467 at December 31, 2024.
- Total long-term liabilities: $ 1,939 at December 31, 2025; $ 1,909 at December 31, 2024.
- Total equity: $ 1,900 at December 31, 2025; $ 1,656 at December 31, 2024.
Analysis
FedEx Freight reported revenue of $ 8,778 for the twelve months ended December 31, 2025, compared with $ 9,092 in 2024. Operating income was 1,022 versus 1,532, and net income was $ 1,059 versus $ 1,440. Basic and diluted earnings per share were each $ 7.08, compared with $ 9.63.
Operating activity was lower than the prior year. Total shipments were 22,362,881 versus 23,071,534, total tonnage was 10,309,718 versus 10,712,940, and tonnage per day was 40,750 versus 42,177. Priority and Economy average daily shipments were also lower, while composite weight per shipment was 922 versus 929.
Pricing measures were mixed by service and unit of measure. Composite revenue per shipment was $ 374.55 versus $ 375.99, while composite revenue per shipment excluding fuel surcharges was $ 314.15 versus $ 313.80. Composite revenue per hundredweight was $ 40.62 versus $ 40.49, and composite revenue per hundredweight excluding fuel surcharges was $ 34.07 versus $ 33.79. Economy revenue per hundredweight excluding fuel surcharges was $ 38.01 versus $ 39.00.
Expenses included 206 of separation and other expense, compared with — in 2024. The fourth quarter was the principal pressure point: revenue was $ 2,068, total operating expenses were 2,082, operating income was (14), and separation and other expense was 176. Cash was $ 100 at December 31, 2025, long-term debt less current portion was $ 147, and Due to Parent, net was $ 1,324. The filing did not provide forward guidance, cash-flow measures, or capital-return disclosures.
Not in the filing
stated, not guessed- Gross profit and gross margin
- Operating margin
- Non-GAAP operating income, net income, and earnings per share
- Operating cash flow
- Free cash flow
- Capital expenditures
- Share repurchases
- Dividends
- Forward guidance
- Prior outlook for comparison
- Effective tax rate
- Executive commentary and named executive quotes
- Segment revenue
AlphAI analysis generated 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 cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.