FedEx reported quarterly earnings and revenue that beat expectations, but the good news was tempered by the announcement of another cost-cutting goal of $1 billion for its upcoming fiscal year.
The latest cost-cutting measures come as the company already announced it had achieved its $4 billion cost-cutting goal from the previous fiscal year.
FedEx shares fell 5% following the announcement.
In its fourth quarter of 2025, FedEx revenue rose to $22.22 billion versus $21.79 billion expected.
For the full fiscal year, revenue reached $87.9 billion, a slight increase from $87.7 billion in fiscal 2024.
FedEx CEO, Raj Subramaniam told investors, “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. We will continue to leverage the unique scale and flexibility of our global network to support our customers as the demand environment evolves.”
Moving into fiscal 2026, Subramaniam said, “Looking ahead, I’m confident that our transformation initiatives, which are focused on integrating our networks and further reducing our cost-to-serve, will create meaningful long-term value.”
The news comes as the company mourns the passing of its founder, executive chairman, and long-time CEO Frederick W. Smith. “Fred pioneered express delivery and connected the world, shaping global commerce as we know it. His legacy of innovation, leadership, and philanthropy will continue to inspire future generations. I will miss not only his visionary leadership, but his trusted friendship and counsel,” Subramaniam stated.
By CEO NA Editorial Staff
