FedEx Freight Shares Surge 14% After Earnings Beat

FedEx Freight Corporation shares surged 14% in early trading on Friday following a third-quarter financial report that beat analyst estimates for both revenue and adjusted profit. The company, which spun off from its parent company on June 1, also issued fourth-quarter profit forecasts that surpassed market expectations.

Chief Financial Officer Marshall Witt stated that revenue growth for 2027 remains on track for a medium-term target of 4% to 6%. He noted that adjusted operating margins are progressing toward a 15% goal.

While separation costs and technology upgrades impacted short-term earnings, analysts from Evercore ISI and Jefferies indicated that the company's medium-term targets are becoming more achievable as key revenue drivers show improvement.