FedEx beats earnings expectations, cuts costs, plans to spin out Freight division

From CNBC: 2025-06-24 17:09:00

FedEx reported better-than-expected quarterly earnings and revenue, achieving its $4 billion cost-cutting goal. CEO Raj Subramaniam expressed confidence in transformation initiatives to create long-term value. The stock dropped 5% in after-hours trading. Fiscal fourth-quarter results exceeded analyst expectations, with earnings per share at $6.07 and revenue at $22.22 billion.

The company reported a 6% increase in U.S. daily package volume and a 10% increase in U.S. ground home delivery volume. Net income for the quarter was $1.65 billion, with revenue rising to $22.22 billion. Full fiscal year revenue was $87.9 billion. Capital spending for fiscal 2025 was $4.1 billion, down 22%.

FedEx announced a $1 billion cost-cutting reduction for fiscal 2026. First quarter fiscal 2026 guidance includes flat to 2% revenue increase year over year, but adjusted earnings per share slightly below estimates. FedEx plans to spin out its Freight division into two publicly traded companies within 18 months.



Read more at CNBC:: FedEx (FDX) Q4 2025 earnings