FedEx has posted stronger-than-expected first-quarter results, with profit and revenue beating Wall Street estimates, despite the U.S. trade tariffs burdening international shipments.
The company’s revenue reached $22.24 billion, surpassing forecasts of $21.66 billion.
FedEx also announced a $500 million share repurchase and is on track to spin off its freight unit by June 2026.
Raj Subramaniam, FedEx Corp President and CEO told investors, “Our earnings growth underscores the success of our strategic initiatives, as we are flexing our network and reducing our cost-to-serve, while further enhancing our value proposition and customer experience.”
Moving forward, Subramaniam said, “Our strategic initiatives, paired with our unique operational data platform from moving 17 million packages through our network daily, position us well to serve our customers in any environment and to create long- term value for our stockholders.”
For fiscal 2026, FedEx is forecasting a 4 to 6% revenue growth rate year over year, permanent cost reductions of $1 billion in transformation-related savings and a $4.5 billion capital spending, with priority on investments in network optimization and efficiency improvement, including fleet and facility automation and modernization.
The announcement comes as the Memphis based logistics giant has been under pressure since May 2, when the U.S. ended long-standing “de minimis” tariff exemptions on shipments under $800.
Following the release, FedEx shares rose 5% in premarket trading Friday.
By CEO NA Editorial Staff
