FedEx (FDX) Stock Soars to Record High on J.P. Morgan Upgrade Ahead of Freight Spinoff

Key Takeaways

• J.P. Morgan elevated FedEx (FDX) rating to Buy, increasing the price target from $432 to $460
• Shares surged 2.8% to reach $411.20 on Wednesday, after touching a record peak of $408.85
• The company plans to separate its freight division on June 1; the segment projects $8.7 billion in revenue for FY2026
• Over the past year, FDX has surged 82%, significantly outperforming competitor UPS with only a 5% gain
• Fourth-quarter FY2026 results are scheduled for June 23; consensus estimates predict EPS of $5.91, though J.P. Morgan forecasts $6.40

Shares of FedEx (FDX) climbed to a record peak of $408.85 on Wednesday before advancing further to $411.20 — marking a 2.8% increase — following J.P. Morgan’s decision to upgrade the delivery giant to Buy.

FedEx Corporation, FDX

Analyst Brian Ossenbeck elevated his price objective to $460 from the previous $432, pointing to the forthcoming freight division separation and a more favorable risk/reward profile as the company approaches its earnings announcement.

The upgrade propelled FDX to unprecedented territory, with the stock now commanding a market capitalization of $95.4 billion.

Rival UPS also experienced gains on Wednesday, rising 1.2% to $103.32, though the performance disparity between the two logistics leaders remains substantial.

Over the trailing twelve months, FedEx has climbed 82%. UPS has managed only a 5% advance during the identical timeframe.

June 1 Freight Unit Separation

FedEx is preparing to spin off its less-than-truckload freight division on June 1. This segment, which primarily serves industrial clients shipping merchandise across shorter routes, competes directly with companies like Old Dominion Freight Line.

A primary driver behind the separation strategy is valuation disparity. FedEx currently trades at approximately 18 times forward earnings projections. Old Dominion commands a 38 times multiple. The spinoff aims to unlock FedEx Freight’s underlying value through standalone public market recognition.

FedEx Freight anticipates generating $8.7 billion in revenue and $1.1 billion in operating earnings for FY2026.

For the parent FedEx corporation, Wall Street analysts forecast approximately $94 billion in total revenue and $6.5 billion in operating income for the fiscal year.

Upcoming Quarterly Results

FedEx will release its fourth-quarter fiscal 2026 financial results on June 23. Wall Street consensus calls for earnings per share of $5.91, representing a decline from the prior year’s $6.07.

Ossenbeck holds a more bullish outlook. His model anticipates $6.40 per share.

Given that FedEx’s fiscal year concludes in May, the Q4 announcement will cap off a remarkable year during which the stock more than doubled from its cyclical lows.

Following Wednesday’s rating change, 63% of analysts tracking FDX now assign it a Buy recommendation. This exceeds the typical 55%–60% Buy-rating threshold observed across S&P 500 constituents.

The consensus analyst price objective stands at approximately $417.

UPS, in comparison, receives a Buy rating from merely 48% of its analyst coverage. The average price target for that stock is $114.

Separately, UBS reaffirmed its Buy stance on FedEx, modestly adjusting its target to $445 from $446 in anticipation of the freight division separation.

FedEx has also recently disclosed the redemption price for its €354.9 million notes maturing in 2031, establishing May 28, 2026 as the redemption date.