FedEx Reduces Debt Immediately After Receiving 4 Trillion Won Dividend

FedEx Corp. (FDX) reported fourth-quarter and full-year fiscal 2026 results, with both revenue and earnings rising year-over-year. Effective June 1, the company completed a tax-efficient spin-off of its freight subsidiary, FedEx Freight, into a newly independent, publicly traded company, generating approximately $4.1 billion in cash proceeds.

FedEx said improvements in domestic and international express shipping yields, cost savings from restructuring and higher volumes drove stronger adjusted operating income. During fiscal 2026, the company invested about $3.8 billion in capital expenditures and returned roughly $2.2 billion to shareholders through dividends and share repurchases.

Also as of June 1, FedEx will shift its fiscal year end to December. It provided calendar-year 2026 guidance targeting around 11 percent revenue growth and higher earnings per share. To maintain a leverage-neutral capital structure, the company plans to use spin-off proceeds and existing cash to launch a cash tender offer for up to $4.15 billion of its outstanding notes.

In its first earnings release as a standalone public company, FedEx Freight forecast 4–6 percent revenue growth and up to 7.5 percent adjusted operating income growth for the seven-month period following the spin-off through year-end. BMO Capital Markets and other brokers have since raised price targets for the new entity’s shares.

Headquartered in the U.S., FedEx is a global express and logistics provider that competes with UPS, DHL and others through an integrated air and ground delivery network. Under its “One FedEx” strategy, the company is honing its core express and parcel business, while in a high-interest-rate environment pursuing substantial capital investment alongside debt reduction and share buybacks.