Jim Cramer points to FedEx Freight spin-off as FedEx Freight begins trading as a standalone company

Jim Cramer highlighted FedEx as he discussed a recent rally that included AI-related stocks, drawing attention to the company’s new spin-off. In comments reported by Yahoo Finance and republished elsewhere, Cramer said the “long awaited break up” of FedEx had arrived, pointing to FedEx Freight’s move into regular-way trading on the New York Stock Exchange under the ticker FDXF. He also argued that separating the businesses gives FedEx a more focused structure and better ability to benefit from changing economic conditions.

The spin-off creates two independent, publicly traded companies from FedEx’s freight business. FedEx said on June 1, 2026 that it completed the separation of FedEx Freight Holding Company, Inc., establishing FedEx Freight as a stand-alone company and focused leader in North America’s less-than-truckload (LTL) market. In LTL shipping, freight moves in smaller loads than full truck shipments, typically consolidating many customers’ cargo on shared routes.

Under the separation terms, FedEx Freight was created through a distribution by FedEx of 80.1% of the outstanding FedEx Freight shares to FedEx stockholders on a pro rata basis. FedEx said each FedEx stockholder received one share of FedEx Freight common stock for every two shares of FedEx common stock held of record as of May 15, 2026, with cash paid in lieu of fractional shares. FedEx also retained 19.9% of FedEx Freight’s outstanding shares and said it plans to dispose of those shares within 24 months of the completion through exchanges and/or distributions.

The move was previously approved by FedEx’s board on May 13, 2026. In that announcement, FedEx said FedEx Freight’s common stock would begin trading on June 1 under the symbol FDXF, while FedEx would continue to trade on the NYSE under FDX. FedEx also described the mechanics of the distribution period, including an “ex-distribution” trading market and an entitlement market for shares expected to be distributed. The company further said FedEx Freight would pay FedEx a cash dividend of approximately $4.1 billion ahead of the separation, and that FedEx issued notice of its intention to redeem certain notes due in 2031.

FedEx had been laying the groundwork with regulatory steps earlier in 2026. In a Form 10 filing announcement, FedEx said it submitted a registration statement to the SEC for the planned spin-off of FedEx Freight and described the separation as expected to be tax-free for U.S. federal income tax purposes for FedEx and FedEx stockholders, except for cash paid in lieu of fractional shares. FedEx also said FedEx Freight would be listed on the NYSE under FDXF and that FedEx Freight planned an investor day in New York City on April 8, 2026 to outline strategy and value creation.

Looking ahead, FedEx has said the separation will change how it reports results and pursues profitability plans across its remaining segments. In a company investor day update, FedEx said its planned spin-off of FedEx Freight on June 1, 2026 was on track and that its realigned reporting segments would be effective following the separation. The company also discussed targets tied to initiatives such as network transformation and operational improvements, with expected operating income contributions framed around post-separation segment performance.

Still, investors will need to track how the companies execute after the legal separation. FedEx’s completion announcement did not provide forward guidance on what the spin-off will mean for the near-term share prices of FDX or FDXF, and the Cramer comments are opinion rather than an operational disclosure. As with most separations, transition costs, customer and vendor alignment, and debt allocation can affect earnings patterns, especially early in the standalone period.