FedEx drops 5% due to soft Q1 outlook and trade uncertainty

From Financial Modeling Prep: 2025-06-25 16:03:00

FedEx (NYSE:FDX) shares dropped over 5% today due to a lower profit forecast for the current quarter, reflecting concerns over global demand and trade tensions. Despite beating Q4 estimates with $6.07 EPS on $22.2B revenue, FedEx’s Q1 EPS guidance of $3.40 to $4.00 fell short of the $4.06 forecast.

FedEx refrained from providing full-year earnings and revenue guidance, citing a volatile macro environment. CEO Raj Subramaniam highlighted uncertain global demand and rising trade tensions as challenges. The decision to end duty-free status for low-cost shipments from China-linked retailers has also impacted profitability.

As a key economic indicator, FedEx’s results reflect business caution amid political and trade uncertainty. The company has implemented $2.2B in cost cuts to offset weaker volumes. However, visibility for the near future remains limited, with investors preparing for a challenging start to the fiscal year.



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