As described in Note 1 , Description of B usiness and Basis of Presentation, FedEx Freight became an independent, publicly traded company on June 1, 2026, and also changed its fiscal year-end from May 31 to December 31. As a result of this change, the period from June 1, 2026, to December 31, 2026, represents a seven-month transition period. Accordingly, the Condensed Consolidated Statements of Income include three- and four-month periods ended September 30, 2026 and 2025.


	One Month Ended
	June 30, 2026		June 30, 2025
Revenue	$	839	$	745
Operating expenses:
Salaries and employee benefits	378		349
Operating supplies and expenses	176		150
Purchased transportation	74		65
Depreciation and amortization	38		43
Insurance and claims	15		14
Operating taxes and licenses	6		6
Separation and other costs	22		—
Total operating expenses	709		627
Operating income	130		118
Other income (expense):
Related party interest income	—		30
Interest, net	(18)		—
Other, net	2		2
Total other income (expense)	(16)		32
Income before income taxes	114		150
Provision for income taxes	31		37
Net income	$	83	$	113

Earnings per share:
Basic	$	0.56	$	0.76
Diluted	$	0.56	$	0.76

Weighted average shares outstanding:
Basic	149.5		149.5
Diluted	149.9		149.5