Quarterly Performance & Cost Savings: FedEx achieved a solid finish to FY 2025 with a 1% increase in revenue year-over-year, an 8% rise in adjusted operating income, and a 60 basis points expansion in adjusted operating margin despite a challenging demand environment. The company delivered $2.2 billion in structural cost reductions, contributing to a total of $4 billion over two years relative to the FY '23 baseline.

Growth Expectations & Revenue Forecasts: For Q1 FY 2026, FedEx anticipates consolidated revenue growth in the range of flat to up 2%. This includes approximately $570 million in headwinds from the expiration of the US Postal Service contract and trade disruptions, with expectations for adjusted EPS ranging from $3.40 to $4. The guidance reflects prior lower levels of performance for the first four months compared to typical seasonality due to these headwinds.

International Trade Risks: The company reported significant declines in international export revenue, primarily driven by tariffs impacting trade between China and the US. This has dampened export volumes, especially in the trans-Pacific lane, leading to a forecasted $170 million headwind in adjusted operating income for Q1 FY 2026. The trade environment remains volatile, which could further disrupt operational performance.