FedEx (NYSE: FDX) shares surged following the fiscal Q2 2025 earnings report because of its daring plan to unlock value. After careful review, the board has decided to spin off the freight business, which is struggling and offsetting strength in the core FedEx Express operations.
The plan is to do it tax-efficiently, likely a stock distribution expected to be completed within the next 18 months. The remaining business, growing in 2024, is expected to continue growing while improving operating performance, driving cash flow, and delivering robust capital returns to investors.
