First-quarter earnings beat expectations at FedEx
By Abigail Townsend
Date: Friday 19 Sep 2025
(Sharecast News) - Shares in FedEx pushed higher on Friday, after first-quarter numbers beat expectations, despite tariffs hitting international volumes.
Revenues at the US delivery giant came in at $22.2bn in the three months to August end, up from $21.6bn a year previously.
Adjusted earnings per share, which strip out the cost of spinning off FedEx Freight, rose to $3.83 from $3.60.
Both figures were comfortably ahead of forecasts, with Wall Street expecting largely flat revenues and EPS closer to $3.59.
FedEx acknowledged that the quarter had been impacted by higher wage and transportation costs, the end of its contract with the US Postal Service and "the impact of the evolving global trade environment on international export package demand".
Donald Trump's sweeping tariff regime, which has seen the long-running de minimis exception scrapped, has weighed heavily on the global package trade.
Under de minimis rules, shipments worth less than $800 had been permitted to enter the US duty-free.
FedEx said: "Since the third quarter of 2025, there have been significant changes within the global trade environment, such as the removal of the de minimis exception.
"The uncertain and evolving global trade environment has contributed to lower export package volumes, negatively affecting our results in the first quarter of 2026.
"Continued uncertainty and volatility in the global trade environment could lead to further weakened business conditions for the transportation industry."
However, FedEx said that during the first quarter, headwinds had been partially offset by higher US and international priority package yields, efficiency measures intended to slash costs by $1bn over the year, and stronger US package volumes.
The courier is forecasting revenue growth of between 4% and 6%, and diluted EPS of between $14.20 and $16.00, for the full-year.
As at 1230 BST, shares in FedEx were 5% higher in pre-market trading. FedEx posted results after the bell on Thursday.
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