Amit Singh

Wed, Jun 25, 2025, 7:27 AM4 min read

FedEx (FDX) delivered a strong finish to its fiscal 2025, posting financial results for the fourth quarter that beat Wall Street’s expectations. The company reported revenue of $22.2 billion, a modest 1% increase from the same period last year but enough to come in ahead of analyst estimates. Its adjusted earnings per share came in at $6.07, marking a 12.1% year-over-year jump and surpassing the consensus forecast of $5.93.

Despite this solid performance, FedEx shares took a hit following the earnings announcement. Investors reacted to a more cautious tone from the company as it navigates challenges stemming from tariffs and an overall slowdown in the industry. Moreover, management provided a profit outlook for the current quarter that fell below market expectations, sparking concerns about near-term growth.

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Looking to the first quarter of fiscal 2026, FedEx anticipates revenue will remain roughly flat or grow by up to 2% compared to the prior year. FedEx guided for adjusted earnings per share between $3.40 and $4.00, with the midpoint at $3.60 — below the analyst consensus of $4.05.

Still, while the near-term outlook may appear conservative, there are encouraging signals in FedEx’s broader performance. There’s no question FedEx is executing well. Even as revenue growth moderates, the company continues to deliver profit growth by tightening costs and boosting efficiency. These operational gains, especially in high-margin segments, highlight the underlying strength of the business.

FedEx is focusing on areas such as business-to-business (B2B) logistics, small and medium-sized customers, and international markets, particularly in Europe and air freight, to diversify its revenue and sustain growth.

In B2B, FedEx is focusing on verticals such as healthcare and automotive. It closed FY25 with $9 billion in healthcare revenue, helping drive gains in priority U.S. shipments. In the automotive space, the company established a dedicated team and is targeting the $18 billion premium North American market. These high-value, time-sensitive shipments offer strong margins and are key drivers of growth for FedEx.