NYSE$FDX

FedEx Corporation · Q1 2025 earnings

Q1 2025 earnings · · Investor relations

Briefing

FedEx transitioned to One FedEx and reported a decrease in operating income due to mix shift and higher expenses, partially offset by DRIVE program savings.

FedEx reported Q1 2025 revenue of $21.6 billion and diluted EPS of $3.21. Results were impacted by a mix shift and higher operating expenses, offset by cost reductions from the DRIVE program. The company completed a $1 billion share repurchase during the quarter and narrowed its full-year earnings outlook.

  • Successfully transitioned to One FedEx at the start of fiscal 2025.
  • Completed a $1 billion share repurchase during the quarter.
  • First quarter results were negatively affected by a mix shift and higher operating expenses.
  • Revised fiscal 2025 revenue and earnings forecasts.

Headline financials

Total Revenue

$21.6B

Previous: $21.7B-0.5%
EPS

$3.21

Previous: $4.55-29.5%
Operating Margin

5.0%

No prior period
Capital Expenditures

-$767M

No prior period
Free Cash Flow

$794M

Previous: $1.08B-26.3%
Net Income

$794M

Previous: $1.08B-26.3%
Operating Income

$1.08B

Previous: $1.49B-27.3%
Gross Profit

-$1.9B

Previous: -$1.93B+1.1%
Cash & Equivalents

$5.94B

Previous: $7.06B-15.8%
Total Assets

$86.7B

Previous: $87.6B-1.0%
Stock-Based Comp

$48M

Previous: $56M-14.3%

Revenue & EPS history

FedEx · Revenue · Quarterly

$21.6B

Q1 2025-0.5%vs Q1 2024
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Forward guidance

FedEx is revising its fiscal 2025 revenue and earnings forecasts and now expects a low single-digit percentage revenue growth rate year over year and earnings per diluted share of $17.90 to $18.90 before MTM adjustments.

Tailwinds

  • Permanent cost reductions from the DRIVE transformation program of $2.2 billion.
  • ETR of approximately 24.5% prior to the MTM retirement plans accounting adjustments.
  • Capital spending of $5.2 billion, with a priority on investments in network optimization and efficiency improvement, including fleet and facility modernization and automation.
  • Expects to help offset weaker-than-expected demand trends.
  • Remain committed to our plan to return $3.8 billion to stockholders this fiscal year.

Headwinds

  • A low single-digit percentage revenue growth rate year over year, compared to the prior forecast of a low-to-mid single digit percentage increase.
  • Earnings per diluted share of $17.90 to $18.90 before the MTM retirement plans accounting adjustments compared to the prior forecast of $18.25
  • Unable to forecast the fiscal 2025 mark-to-market (MTM) retirement plans accounting adjustments.
  • Relying on the exemption provided by the Securities and Exchange Commission (SEC).
  • It is reasonably possible that the fiscal 2025 MTM retirement plans accounting adjustments could have a material effect on fiscal 2025 consolidated financial results and ETR.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2025

Historical avgQ1 2025

-0.3%

Avg return

Earnings day

+0.1%

Avg return

5 days after

+2.3%

Avg return

30 days after

43%

31 / 72 earnings

Positive

+16.4%

Q4 2020

Best reaction

-14.6%

Q1 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026+1.4%+0.4%+10.2%
Q2 2026-1.6%+3.1%+7.3%
Q1 2026+2.4%+3.2%+5.0%
Q4 2025-0.8%-2.1%-1.5%
Q3 2025-6.4%-1.0%-15.7%
Q2 2025+0.9%-0.5%+0.7%
Q1 2025-14.6%-10.4%-8.0%
Q4 2024+15.5%+16.9%+16.4%
Q3 2024+9.4%+11.2%+2.7%
Q2 2024-12.7%-12.0%-13.4%
Q1 2024+0.5%+4.7%-2.4%
Q4 2023-3.3%-0.5%+12.9%
Q3 2023+12.8%+12.6%+18.1%
Q2 2023+0.7%+4.2%+9.2%
Q1 2023-2.6%-5.4%-0.0%
Q4 2022+6.2%+4.8%-0.8%
Q3 2022-3.1%+0.3%-8.9%
Q2 2022+4.0%+4.6%+6.4%
Q1 2022-8.7%-9.6%-7.2%
Q4 2021-1.8%+0.2%-0.1%
Q3 2021+5.2%+0.4%+8.2%
Q2 2021-4.6%-5.4%-12.6%
Q1 2021+5.9%+2.7%+19.4%
Q4 2020+16.4%+15.6%+28.4%
Q3 2020+10.2%+22.7%+31.6%
Q2 2020-10.5%-9.7%-2.8%
Q1 2020-13.1%-14.3%-13.2%
Q4 2019-0.6%+2.0%+9.3%
Q3 2019-4.0%-4.6%+8.6%
Q2 2019-10.8%-13.3%-4.9%
Q1 2019-5.4%-3.2%-12.5%
Q4 2018-4.6%-8.3%-10.3%
Q3 2018-0.2%-8.1%+0.8%
Q2 2018+3.8%+3.4%+12.5%
Q1 2018+2.5%+2.3%+4.1%
Q4 2017+0.6%+2.1%+0.4%
Q3 2017+1.9%-2.2%-3.0%
Q2 2017-2.8%-2.9%-5.8%
Q1 2017+7.8%+8.1%+5.2%
Q4 2016-4.8%-8.5%-3.7%
Q3 2016+12.8%
Q2 2016+4.9%
Q1 2016-2.9%
Q4 2015-2.1%
Q3 2015-1.1%
Q2 2015+0.1%
Q1 2015+2.8%
Q4 2014+5.2%
Q3 2014-1.5%
Q2 2014+0.4%
Q1 2014+5.6%
Q4 2013-3.8%
Q3 2013-9.4%
Q2 2013+1.0%
Q1 2013-2.7%
Q4 2012+3.2%
Q3 2012-3.6%
Q2 2012-1.3%
Q1 2012-0.8%
Q4 2011-0.9%
Q3 2011+2.2%
Q2 2011-0.7%
Q1 2011+3.3%
Q4 2008-5.2%
Q4 2010-5.2%
Q3 2010-3.2%
Q3 2009-3.2%
Q2 2010+0.3%
Q2 2009-1.1%
Q1 2009-1.1%
Q1 2010-1.1%
Q4 2009-1.1%

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