After starting the first four months of 2025 with a 25% drop in stock price, FedEx (FDX +0.26%) has bounced back and is on track to end the year up from where it started. What helped spark this strong comeback was its June quarterly report -- for the fourth quarter of its fiscal 2025 -- in which it noted strong savings from its DRIVE program, the long-term plan that aims to increase profitability.
The company reported reaching its $2.2 billion fiscal 2025 DRIVE target, and the shipping company aims in the current fiscal year for permanent cost reductions of $1 billion from the DRIVE and Network 2.0 transformation programs.
Since that June quarterly report, revenue, net income, and earnings per share have jumped each quarter. For its second-quarter FY26 report on Nov. 10, the company reported a 6.84% growth in revenue year over year, the highest since Q2 2022. But while its key metrics are impressive now, the spinoff of FedEx Freight (the less-than-truckload business) may propel the company's stock to even higher heights.
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FedEx Freight is set to hit the stock market on June 1
To improve shareholder value, FedEx plans to separate its freight division into an independent company: FedEx Freight. Planned for June 1 next year, FedEx Freight will trade on the NYSE with the ticker FDXF.
NYSE: FDX
Key Data Points
This spinoff will benefit FedEx, as it can further streamline its DRIVE vision by focusing on its main parcel, ground, and express shipping services, while FedEx Freight will focus on trucking. Investors will also be able to focus on FedEx as a pure courier stock, or have the option to invest in FedEx Freight if they're interested in the freight sector. Mark your calendars for June 1, when the new ticker is set to start trading.
