FedEx earns $6.07 per share but issues cautious outlook

In the United States, FedEx released its Q4 FY2025 earnings report on June 24, 2025. The company reported total revenue of $22.2 billion, which matched the previous year's revenue and exceeded analyst expectations of $21.8 billion. Despite these figures, FedEx's cautious outlook for the upcoming quarter sparked concerns among investors, leading to a 6% drop in stock price during after-market trading. The company noted positive trends in its package segment, with a 5% increase in volume, although it is important to highlight FedEx's ongoing strategy of spinning off its freight business to sharpen focus on parcel delivery operations. 　 The earnings report also indicated a notable improvement in the adjusted operating margin, which increased by 600 basis points to reach 9.1%. However, the forecast for revenue growth suggested stagnation with a potential year-over-year increase of only 2%, while the adjusted earnings per share guidance was set between $3.40 and $4.00, which fell short of analysts' consensus estimate of $4.06. Although the revenue figures were strong, investors were particularly troubled by the lack of a full fiscal year outlook from the company. 　 Furthermore, FedEx mentioned additional cost-cutting initiatives totaling $1 billion for fiscal 2026, building on the $4 billion in savings already achieved. This is part of a broader effort to streamline operations amid fluctuating demand and to stabilize profitability after a challenging year where FedEx reported a 17% decline in stock value year-to-date, along with a 27% decrease from its 52-week high of $314. Industry observers noted that FedEx's performance could serve as an indicator for UPS, which is scheduled to report its financial results in late July. The cautious sentiment surrounding FedEx's outlook also reflected the overall trends for delivery service companies, as both FedEx and UPS have faced significant stock price declines amid rising costs and changing market conditions. In summary, while FedEx posted better-than-expected earnings, uncertainties about future performance may weigh on investor confidence. 　 In light of these developments, analysts are urging investors to wait for more definitive signals regarding FedEx's recovery strategy, particularly in light of the strategic partnership with Amazon, especially since UPS has reduced its relationship with the e-commerce giant. Overall, FedEx’s mixed earnings report underscores the challenges facing the logistics industry in a post-pandemic landscape, suggesting that while there are positive signs, there are also substantial concerns about the path forward.