# FedEx Freight Raises Adjusted Outlook, Cuts GAAP Operating Income Forecast

By John Kim

Canonical URL: https://www.tokenpost.com/news/business/45018
Published: 2026-10-30T18:43:59.000Z
Updated: 2026-10-30T18:43:59.000Z
Section: Business

> The company raised its adjusted operating income, margin and diluted EPS targets for the seven-month transition period through Dec. 31, while lowering its GAAP operating margin forecast.

FedEx Freight raised its adjusted operating income, margin and diluted earnings per share forecasts for a seven-month transition period while cutting its GAAP operating income outlook, leaving the company’s guidance mixed across accounting measures.

For the seven months from June 1 through Dec. 31, the company now projects adjusted operating income of $695 million to $715 million, compared with its prior range of $605 million to $645 million. It issued the earlier forecast June 25.

Adjusted operating margin guidance rose to 12.5% to 12.7% from 11.5% to 12%. The adjusted diluted earnings per share (EPS) range increased to $2.80 to $2.90 from $2.40 to $2.60. In contrast, the GAAP operating income forecast fell to $465 million to $485 million from $475 million to $515 million, and the GAAP margin range declined to 8.3% to 8.6% from 9% to 9.5%.

In the three months through Sept. 30, revenue grew 8% from a year earlier to $2.442 billion. GAAP operating income declined 13% to $253 million, while adjusted operating income was $358 million and adjusted diluted EPS was $1.49.

The separate four-month period through Sept. 30 brought in $3.281 billion in revenue, up 9.2% year over year. GAAP operating income decreased 6.1% to $383 million, while adjusted operating income increased 16.4% to $510 million. Adjusted diluted EPS was $2.15, down 24.6%.

FedEx Freight became an independent publicly traded company June 1 and moved its fiscal year-end from May 31 to Dec. 31. That change created a one-time seven-month reporting period. The four-month results include June and the July-to-September quarter; the transition period continues through the final three months of the year.

For those three months ending Dec. 31, FedEx Freight forecasts revenue of $2.30 billion to $2.37 billion and adjusted operating income of $185 million to $205 million.

Chief Financial Officer Marshall Witt attributed the revised outlook to “fuel tailwinds and slightly higher volume assumptions.” Adjusted measures exclude spin-off costs, and the adjusted EPS forecast also excludes mark-to-market retirement-plan adjustments. Because it could not forecast those adjustments, the company did not issue GAAP EPS or effective-tax-rate guidance for the transition period.