FedEx Tracks will be seen during traffic jams in New York City on September 16th, 2025.
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Fedex I will hit the top line and bottom line in my first quarter of accounting revenue report on Thursday.
Shares rose more than 5% in after-hours trading on Thursday.
“Despite the substantial volatility and uncertainty regarding the global trade environment, our results demonstrate the resilience we have built into our network,” CEO Raj Subramaniam said in a call with analysts on Thursday. “They also reflect the dedication of our world-class team, who quickly adapted to serve excellence customers through an evolving demand environment.”
Here’s how the company performed in its first fiscal quarter compared to what Wall Street had expected based on an analyst survey by LSEG:
Earnings per share: $3.83 adjusted vs. $3.59 forecast: $222.4 billion vs. $21.666 billion
The package delivery company recorded net income of $820 million, or $3.46 per share, for the first accounting quarter ended August 31st, compared to $790 million ($3.21 per share) in the same period last year. Adjusted to FedEx cargo spinoff costs and other changes, the company posted net profit of $910 million or $3.83 per share.
The average daily dose in the US increased by 6% overall, the company reported. FedEx said segment operating results showed improvements this quarter due to increased domestic package volumes, while FedEx Cargo Freight segment operating results decreased due to lower revenues and increased wages.
The company said it expects revenue growth in 2026 to be between 4% and 6%, compared to Wall Street’s estimate of 1.2%. FedEx expects earnings per share to be between $17.20 and $19 for fiscal year 2026. This is $18.10 compared to the estimated $18.21.
Subramaniam said Thursday that the outlook reflects what is a “dynamic global operational environment.” The company said it generated $150 million in headwinds from the global trade environment.
FedEx continues its process of spin-off FedEx cargo to a new public company with an expected completion date for June 2026, the company said.
According to Subramaniam, FedEx moves 17 million packages over the network every day. He added that the company is flexible in the first quarter and adapts to a changing macroeconomic environment.
The “de minimis” exception, which allowed US tax-free shipments of less than $800 after President Donald Trump issued an executive order last month, ended worldwide. As a result, FedEx announced that shipping costs will be slightly increased.
The company said the majority of the first quarter headwinds were due to the loss of the exception to DE Minimis.
“Given a significant portion of the minimum exposure from previous China, learning from the May experience was able to help shippers navigate the elimination of recent exemptions elsewhere,” Subramaniam said over the phone.
