FedEx Corporation (NYSE: FDX) Q4 2025 Earnings | 6/24/2025

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Earnings Calls

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The FedEx Fourth Quarter Fiscal 2025 Earnings Call discussed the company's financial performance and strategic initiatives. Key highlights include:

Tribute to Frederick W. Smith: The call began with a tribute to the late Frederick W. Smith, the founder of FedEx.
Financial Results: FedEx reported a 1% increase in revenue and an 8% increase in adjusted operating income. They achieved their $4 billion drive target.
Strategic Transformation: The company is focused on its strategic transformation, including Network 2.0, which aims to optimize operations and reduce costs.
Network 2.0: FedEx is actively implementing Network 2.0, with significant progress in North America and Europe.
Freight Spinoff: FedEx is proceeding with the spinoff of its Freight division, with key leadership appointments announced.
Global Trade: FedEx is adapting to evolving global trade policies and shifting demand trends.
Customer Focus: The company is focused on providing excellent service to customers and helping them navigate complex trade environments.
Financial Outlook: FedEx expects flat to 2% revenue growth in the first quarter of fiscal year 2026.
Fiscal Year 2026: FedEx anticipates $1 billion in transformation-related savings for fiscal year 2026.
Capital Allocation: FedEx is reducing capital intensity and returning capital to stockholders through share repurchases and dividends.

About this video

FedEx Corporation (NYSE: FDX) reported its Q4 2025 earnings on 6/24/2025, delivering results that exceeded analyst expectations and underscored the company’s progress on cost reduction and operational transformation. Revenue for the quarter rose slightly to $22.22 billion, up 1% year-over-year, while adjusted earnings per share (EPS) reached $6.07, beating forecasts and marking a second consecutive year of earnings growth. Net income for the quarter was $1.65 billion, or $6.88 per share, up from $1.1 billion, or $5.94 per share, a year earlier. FedEx achieved its $4 billion DRIVE structural cost reduction target two years ahead of schedule, including $2.2 billion in savings in fiscal 2025 alone, and announced plans to cut an additional $1 billion in costs in fiscal 2026. The company’s Network 2.0 initiative, focused on streamlining operations and integrating networks, contributed to a 60-basis-point expansion in adjusted operating margin and $147 million in year-over-year operating income growth. U.S. daily package volume increased 6% year-over-year, with ground home delivery volume up 10%. Despite these achievements, shares fell about 5% in after-hours trading due to slightly lower profit guidance for the upcoming quarter. For the full fiscal year, revenue reached $87.7 billion, with adjusted EPS of $18.19. Capital expenditures dropped 22% to $4.1 billion, the lowest as a percentage of revenue in company history. FedEx returned $4.3 billion to shareholders through $3 billion in stock repurchases and $1.3 billion in dividends, and announced a 5% dividend increase for fiscal 2026. Looking ahead, FedEx expects Q1 2026 revenue to be flat or up to 2% higher year-over-year, with adjusted EPS guidance of $3.40–$4.00. The company is also preparing for the tax-free spin-off of its Freight division, expected within 18 months. Outlook: $1 billion in additional cost reductions targeted for fiscal 2026 Continued focus on network integration, operational efficiency, and margin expansion Q1 2026 revenue guidance: flat to +2% year-over-year; adjusted EPS: $3.40–$4.00 Freight division spin-off anticipated by late 2026 Ongoing capital returns via increased dividends and share repurchases About Inside Ticker: For more expert analysis and real-time updates on FedEx Corporation (NYSE: FDX) and other market movers, follow Inside Ticker and visit InsideTicker.com for in-depth reports, financial insights, and the latest news on leading companies. #FedEx #FDX #Q42025 #Earnings #Logistics #CostReduction #FinancialResults #Dividends #InsideTicker

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