Bloomberg Intelligence FedEx Raises Profit Outlook on Network Overhaul
Mar 20, 2026
Randall Williams, a sports business reporter covering the WNBA and March Madness. Jody Lurie, a credit analyst on leisure, gaming and travel credits. Diana Gomes, an equity research analyst focused on consumer goods strategy. They discuss FedEx’s network overhaul and profit outlook. They cover Unilever’s potential food-business move. They examine credit stress in cruises, casinos and theme parks.
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FedEx Parcel Turnaround Outruns Its Freight Unit
- FedEx's earnings beat was driven by its express parcel business while its less-than-truckload (LTL) freight unit lags amid weak tonnage.
- Management is restructuring by combining air and ground networks, investing in productivity tech, and targeting a $25 EPS for 2029 that could be exceeded with execution.
FedEx Plans LTL Spinoff To Focus On Parcel Growth
- Spinning off FedEx's LTL freight unit aims to sharpen focus on parcel logistics, mirroring UPS's prior move.
- The LTL spinoff will be timed amid depressed tonnage, so valuation at the June split could be affected by weak market conditions.
Unilever May Exit Foods To Double Down On Beauty
- Unilever is considering selling or splitting its foods business to focus on higher-growth personal care and skincare.
- Bloomberg Intelligence estimates the foods unit could trade around 9x EV/EBITDA on €3.2bn 2026 EBITDA, aligning with packaged food multiples.