FedEx (FDX) Q4 2025 Earnings
How Did FDX Stock React to Q4 2025 Earnings?
S&P 500 over the same 30 days: +4.91%.
Did FDX Beat Earnings? Q4 2025 Results
Yes. FedEx reported Q4 2025 earnings of $6.07 a share on Jun 24, 2025, beating the $5.85 consensus estimate by 3.7%. Revenue was $22.2B against a $21.8B estimate.
FedEx closed fiscal 2025 on a stronger-than-expected note, reporting Q4 adjusted EPS of $6.07 against a consensus estimate of $5.80, a beat of 4.66%, while revenue of $22.22 billion topped the $21.75 billion estimate by 2.16% and edged 0.5% higher year over year. The standout driver behind the results was the completion of the company's DRIVE cost reduction program, which delivered $2.20 billion in structural savings during fiscal 2025 alone and a cumulative $4.00 billion since fiscal 2023, helping push adjusted operating margin to 9.1%, up from 8.5% a year earlier. The Federal Express segment was a particular bright spot, with GAAP operating income climbing 22% year over year as U.S. domestic daily volume grew 6% and international economy package volume surged 34%. FedEx Freight remained a soft patch, with operating income slipping 6%, and the planned spin-off of that unit into a separate publicly traded company added $33.00 million in Q4 costs. Looking ahead, FedEx guided Q1 fiscal 2026 adjusted EPS of $3.40 to $4.00 and full-year capital spending of $4.50 billion, with another $1.00 billion in permanent cost reductions targeted.
- Achieved $2.2 billion fiscal 2025 DRIVE structural cost reduction target, with $4.0 billion in cumulative DRIVE savings relative to fiscal 2023
- Increased U.S. domestic and international export package volume at Federal Express
- Higher base yield across transportation segments
- Capital spending declined 22% to $4.1 billion, lowest capital intensity ratio (4.6% of revenue) in company history
- One fewer operating day negatively impacted results
- Expiration of U.S. Postal Service contract reduced Federal Express revenue
- Higher purchased transportation costs and wage rates at Federal Express
- Lower fuel surcharges and reduced weight per shipment at FedEx Freight
“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.”
FedEx CEO, on the earnings call
What Was FedEx's Outlook in Q4 2025?
For Q1 fiscal 2026, FedEx forecasts flat to 2% revenue growth year over year, an effective tax rate of approximately 25%, GAAP diluted EPS of $2.90 to $3.50, and adjusted diluted EPS of $3.40 to $4.00 (excluding business optimization and FedEx Freight spin-off costs). For full-year fiscal 2026, the company targets $1 billion in permanent cost reductions from the DRIVE and Network 2.0 transformation programs, pension contributions of up to $600 million (vs. $800 million in fiscal 2025), and capital spending of $4.5 billion focused on network optimization, fleet and facility modernization, and automation. FedEx remains committed to returning capital to stockholders, including the previously announced 5% dividend increase to $5.80 per share and a robust share repurchase program. Forecasts assume the company's current economic outlook and fuel price expectations, successful completion of planned stock repurchases, and no additional adverse economic, geopolitical, or trade-related developments.
FDX YoY Financials
| Metric | Q4 2025 | Q4 2024 | Year over year |
|---|---|---|---|
| Revenue | $22.2B | $22.1B | +0.5% |
| Operating Income | $1.8B | $2.0B | −9.8% |
| Net Income | $1.6B | $1.5B | +11.8% |
FDX Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.