FedEx (FDX) Q4 2025 earnings

FedEx reported better-than-expected quarterly earnings and revenue Tuesday as the company announced it had achieved its $4 billion cost-cutting goal and will aim to trim another $1 billion in its upcoming fiscal year.

The company achieved its “structural cost reduction target, in the face of ongoing headwinds,” CEO Raj Subramaniam said in a media release.

“Looking ahead, I’m confident that our transformation initiatives, which are focused on integrating our networks and further reducing our cost-to-serve, will create meaningful long-term value,” he said.

FedEx stock dropped about 5% in after-hours trading as the company offered current-quarter profit guidance that came in slightly below what Wall Street was expecting.

As of Tuesday’s close, shares of FedEx had dropped more than 18% year-to-date.

Here’s how the company did in its fiscal fourth quarter of 2025 compared with what analysts were anticipating, based on a survey of analysts by LSEG:

• Earnings per share: $6.07 adjusted vs. $5.84 expected
• Revenue: $22.22 billion vs. $21.79 billion expected

FedEx reported its U.S. daily package volume was up 6% year over year. U.S. ground home delivery volume, specifically, was up 10% year over year.

The company reported net income for the quarter ended May 31 of $1.65 billion, or $6.88 per share, compared with $1.47 billion, or $5.94 per share, a year earlier. Adjusting for one-time items, including accounting costs associated with retirement plans and other charges, FedEx reported earnings per share of $6.07.

Revenue for the fiscal fourth quarter rose to $22.22 billion, up slightly from $22.1 billion a year earlier.

For the full fiscal year, revenue was $87.9 billion, up from $87.7 billion in fiscal 2024.

FedEx and rival UPS are typically seen as bellwethers for the global economy since they touch a wide variety of businesses.

FedEx reported its capital spending for fiscal 2025 was $4.1 billion, down 22% from $5.2 billion in fiscal 2024. Capital spending as a percentage of revenue hit its lowest level in FedEx history, according to the release.

The reduction in spending comes as FedEx chases a long-term cost-cutting initiative. Its DRIVE program, introduced in fiscal 2023, is aimed at improving long-term profitability. FedEx said on Tuesday it achieved its target of $4 billion total in DRIVE savings by the end of fiscal 2025, relative to a fiscal 2023 baseline.

Its full-year fiscal 2026 guidance includes cost-cutting reductions of $1 billion. The company declined to give full-year fiscal 2026 earnings and profit forecasts.

For its fiscal first quarter of 2026, FedEx gave mixed guidance. The company forecasts revenue will be flat to up 2% year over year, topping StreetAccount estimates that called for revenue to decline by 0.1%. However, FedEx expects adjusted earnings per share of $3.40 to $4.00, slightly under the StreetAccount estimate of $4.06.

CFO John Dietrich said on a Tuesday call with investors that the company’s fiscal first-quarter revenue guidance includes…