FedEx Corporation is a well-known company that specializes in transportation, shipping, and business services. Based in Memphis, Tennessee, it started in 1971 and changed the delivery industry with its fast overnight shipping and tracking technology. Today, FedEx operates in over 220 countries, moving packages and freight across the world with its large network of planes, trucks, and warehouses. It helps connect businesses and customers globally by handling millions of shipments every day.
FedEx is also focused on using new technologies and being environmentally friendly. It works on improving customer service through digital tools and invests in sustainable practices like using electric vehicles, better delivery routes, and eco-friendly packaging. With its dedication to innovation and reliable service, FedEx plays an important role in making shipping and commerce easier and more efficient worldwide.
FedEx Fiscal Q3 2025
FedEx (FDX) announced its Q3 2025 earnings, reporting diluted EPS of $3.76 and adjusted EPS of $4.51. Earnings fell short of estimates, but revenue exceeded forecasts, reaching $22.2 billion.
Also, the company achieved growth in revenue, operating income, and overall earnings. During the quarter, FedEx repurchased $500 million worth of shares. It also updated its full-year fiscal 2025 earnings outlook. Preparations for the spin-off of its FedEx Freight division are progressing well.
FedEx’s results improved this quarter thanks to cost savings from its DRIVE program, stronger pricing, and more shipments at Federal Express. Federal Express did better due to cost cuts, better pricing, and higher U.S. and international exports, though rising wages and the end of a Postal Service deal reduced some gains.
However, FedEx Freight had weaker results because of lower fuel fees, lighter shipments, and fewer deliveries, but stronger pricing helped a bit.
The company also gained a $46 million tax benefit from changes to its structure and updates to past tax estimates. FedEx finished its $2.5 billion stock buyback plan, repurchasing $500 million of shares this quarter, which added $0.12 per share to earnings. As of February 28, 2025, FedEx has $2.6 billion left for buybacks and $5.1 billion in cash.
Outlook
FedEx has updated its fiscal 2025 forecast. It now expects revenue to be flat or slightly lower than last year. Predicted earnings per share (EPS) are $15.15–$15.75 before adjustments and $18.00–$18.60 after excluding certain costs. These estimates are lower than earlier predictions. Capital spending is now planned at $4.9 billion, down from $5.2 billion, focusing on improving efficiency, modernizing fleets, and upgrading facilities.
FedEx’s Board Statement
FedEx’s CEO, Raj Subramaniam, highlighted the team’s improved profitability despite navigating a challenging operating environment. This included a compressed Peak season and severe weather conditions. He expressed pride in the team’s ability to execute transformation efforts while enhancing the company’s value proposition and customer experience. Subramaniam emphasized that FedEx remains committed to supporting its customers as the macroeconomic environment continues to shift.
John Dietrich, FedEx Corp.’s executive vice president and chief financial officer, noted the team’s significant progress in lowering service costs and enhancing operational performance, particularly at Federal Express. He emphasized that these efforts are driving growth in operating income and earnings. Dietrich acknowledged the revised earnings outlook, citing ongoing weakness and uncertainty in the U.S. industrial economy, which is reducing demand for business-to-business services. Despite these challenges, he expressed confidence in FedEx’s ability to implement transformation initiatives and deliver value to stockholders.
Impact of Earning on Stock
FedEx’s stock (FDX) dropped by 9.5% following its Q3 fiscal 2025 earnings report. Despite revenue surpassing expectations, the decline was driven by lower-than-expected earnings per share and a downward revision of its full-year earnings outlook. Concerns about weak demand in the U.S. industrial economy and challenges in business-to-business services contributed to the sharp decline in stock value.
