FedEx Misses Q3 Earnings Estimates and Lowers Fiscal 2025 Forecasts

The shipping giant reports modest revenue growth but faces investor concerns over declining Freight performance and macroeconomic challenges.

FedEx reported Q3 earnings of $4.51 per share, falling short of the $4.54 analyst consensus estimate, while revenue grew 2% year-over-year to $22.2 billion.
The company revised its fiscal 2025 revenue forecast to flat or slightly down, and lowered its earnings per share outlook to $15.15-$15.75 from $16.45-$17.45.
FedEx's Freight segment saw a 5% revenue decline and a 23% drop in operating income during Q3, with plans to spin off the segment by June 2026.
Cost-saving measures under the DRIVE program helped offset rising transportation and wage expenses, but operational disruptions and economic pressures persist.
FedEx shares fell over 5% in after-hours trading following the earnings miss and reduced fiscal outlook, adding to a 12% year-to-date stock decline.