FedEx Corporation, a major logistics and delivery services company based in Memphis, Tennessee, USA, reported stronger-than-expected earnings for the fiscal fourth quarter ending May 31, 2025. The company posted adjusted earnings per share of $6.07 and revenue of $22.22 billion. Alongside meeting its $4 billion cost-reduction target through the DRIVE transformation program, FedEx also announced a new $1 billion cost-saving initiative for fiscal 2026.
FedEx Corporation, a leading American multinational delivery and logistics firm headquartered in Memphis, Tennessee, announced its fiscal fourth-quarter earnings for the period ending May 31, 2025. The company posted an adjusted earnings per share of $6.07, surpassing analyst estimates of $5.84, and reported revenue of $22.22 billion compared to $21.79 billion expected.
FedEx’s U.S. daily package volume saw a 6% year-over-year rise, with ground home delivery volumes up by 10%. Net income for the quarter was $1.65 billion, or $6.88 per share, improving from $1.47 billion, or $5.94 per share, in the same period last year.
For the full fiscal year, FedEx’s revenue grew slightly to $87.9 billion from $87.7 billion in fiscal 2024. The company reported a significant reduction in capital expenditure, spending $4.1 billion in fiscal 2025—down 22% from $5.2 billion the previous year. This marked the lowest capital spending as a percentage of revenue in company history.
The firm also confirmed the successful completion of its $4 billion cost-reduction goal under its DRIVE program, introduced in fiscal 2023. As part of its ongoing transformation, FedEx now plans to reduce costs by an additional $1 billion in fiscal 2026.
While the company declined to offer full-year fiscal 2026 profit guidance, it expects first-quarter revenue to remain flat or rise up to 2% year-over-year. However, it forecasts adjusted earnings per share between $3.40 and $4.00.
During the earnings call, FedEx acknowledged a $170 million revenue headwind in Q1 due to global trade impacts, primarily affecting international exports from China to the U.S. under the “de minimis” tax rule.
This update follows FedEx’s December announcement regarding the spin-off of its Freight division, which is expected to be completed within 18 months. The company continues to focus on integrating operations and driving long-term value creation through efficiency and transformation initiatives.
FedEx released the results shortly after the passing of its founder and executive chairman, Fred Smith, who stepped down as CEO in 2022.
