FedEx Corp (NYSE:FDX, ETR:FDX) suspended its financial outlook for fiscal 2026 on Tuesday, citing persistent uncertainty in global demand, even as the delivery giant reported stronger-than-expected results for the fourth quarter of fiscal 2025.
Adjusted earnings per share for the quarter came in at $6.07, beating the consensus estimate of $5.81, while revenue rose to $22.2 billion, topping forecasts of $21.8 billion.
The company highlighted modest revenue growth over the past eight quarters and continued reductions in capital expenditures.
Despite the earnings beat, FedEx issued downbeat guidance for the current quarter, forecasting adjusted EPS of $3.40 to $4, below analysts’ expectations of $4.06. It projected flat to 2% revenue growth year-over-year for the fiscal first quarter.
As a result, shares fell 5.5% in after-hours trading.
The company said it is targeting $1 billion in cost savings by fiscal 2026 and plans $4.5 billion in capital expenditures. For fiscal 2025, FedEx expects total revenue to be flat to slightly lower, with full-year adjusted EPS between $18 and $18.60.
“Weakness in the US industrial economy is pressuring B2B demand, which management expects to persist into FY26,” FedEx noted. In contrast, the company is seeing more inbound volume in Latin America due to shifting trade patterns, while in Europe, economic weakness persists, but FedEx said it is gaining profitable market share.
“I am proud of the FedEx team for a solid finish to the fiscal year, delivering excellent service for our customers while achieving our structural cost reduction target, in the face of ongoing headwinds,” CEO Raj Subramaniam said. “We will continue to leverage the unique scale and flexibility of our global network to support our customers as the demand environment evolves.”