Companies /Industrials

Fedex Corp

NYSE: FDX Integrated Freight & Logistics
$331.34
▼ $4.65 (−1.38%) today
Markets closed · 4:31pm ET

Q3 2025 Earnings

Reported Mar 20, 2025, 4:10pm ET · SEC source
$4.51
Miss −2.65%
EPS · est. $4.63
$22.2B
Beat +1.26%
Revenue · est. $21.9B
−3.3%
Trailing market
FDX vs S&P since report
5 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−8%−4%0+4%Mar 20Mar 21report 4:10pm ETearnings−0.2%−2.5%
−8%−4%0+4%Mar 20Mar 21earnings−0.2%−2.5%
FDX −2.5%S&P 500 −0.2%
−8%−4%0+4%Mar 20Mar 21report 4:10pm ETearnings+0.3%−2.5%
−8%−4%0+4%Mar 20Mar 21earnings+0.3%−2.5%
FDX −2.5%NASDAQ +0.3%
−4%0+4%Mar 19Mar 28report 4:10pm ETearnings−2.1%+2.8%
−4%0+4%Mar 19Mar 28earnings−2.1%+2.8%
FDX +2.8%S&P 500 −2.1%
−4%0+4%Mar 19Mar 28report 4:10pm ETearnings−2.7%+2.8%
−4%0+4%Mar 19Mar 28earnings−2.7%+2.8%
FDX +2.8%NASDAQ −2.7%
−6.45%
Day of report
+5.21%
Next session
+4.94%
One week
−8.37%
30 days

S&P 500 over the same 30 days: −5.06%.

Did FDX Beat Earnings? Q3 2025 Results

FedEx delivered a mixed but ultimately disappointing fiscal Q3 2025, posting adjusted EPS of $4.51 against a consensus of $4.63, a miss of 2.65%, even as revenue of $22.16 billion edged past estimates by 1.26%. The headline numbers, however, told only part of the story; the more consequential development was the company's third consecutive reduction to its full-year earnings outlook, with adjusted EPS guidance trimmed to $18.00 to $18.60 from a prior range of $19.00 to $20.00, and revenue now expected to be flat to slightly down year over year. The primary culprit was persistent weakness in the U.S. industrial economy, which compressed volumes and margins in the FedEx Freight segment, where revenue fell 5% to $2.09 billion and operating margin contracted sharply to 12.5% from 15.5%. Shares dropped on the news, with analysts at multiple firms cutting price targets in the wake of the guidance reduction, reflecting mounting concern that weakening consumer confidence and trade uncertainty could continue to weigh on B2B demand well into fiscal 2026.

Key Takeaways
  • Cost reduction benefits from DRIVE transformation program
  • Higher base yield at each transportation segment
  • Higher volume at Federal Express, particularly U.S. and international export
  • International economy package volume growth of 48%
  • Share repurchase program reducing diluted share count by $0.12 per share impact
  • Net tax benefit of $46 million ($0.19 per diluted share)

“The FedEx team delivered improved profitability, while navigating a very challenging operating environment, including a compressed Peak season and severe weather events. I am proud of the team for executing on our transformation efforts while strengthening our value proposition and improving the customer experience. Looking ahead, we remain focused on supporting our customers amid the shifting macroeconomic environment.”

FedEx CEO, on the earnings call

Forward Guidance & Outlook

FedEx revised its fiscal 2025 outlook downward. Revenue is now expected to be flat to slightly down year over year (previously approximately flat). Adjusted diluted EPS forecast was lowered to $18.00–$18.60 (from $19.00–$20.00), and GAAP diluted EPS before MTM adjustments to $15.15–$15.75 (from $16.45–$17.45). Capital spending was reduced to $4.9 billion from $5.2 billion. The company reaffirmed $2.2 billion in permanent DRIVE cost reductions and an effective tax rate of approximately 24.0% before MTM adjustments. The revised outlook reflects continued weakness and uncertainty in the U.S. industrial economy constraining business-to-business demand. Forecasts assume current economic conditions and fuel prices with no additional adverse geopolitical or trade-related developments.

FDX YoY Financials

Revenue$22.2B
Operating Income$1.3B
Net Income$909.0M

FDX Revenue by Segment

Federal Express$19.2B+3.0%
U.S. Domestic Package
U.S. Domestic Package (Federal Express)$13.0B+6.0%
U.S. Ground
U.S. Ground Package$9.0B+7.0%
International Export Package
International Export Package (Federal Express)$3.6B+4.0%
U.S. Priority Package$2.6B+2.0%

Figures from SEC filings and company reports. Not investment advice.