Memphis, Tennessee, December 19, 2025
FedEx Corp. reported a fiscal second-quarter profit of $956 million, or $4.04 per share, exceeding expectations. Revenue hit $23.47 billion despite operational challenges, including a $175 million cost from grounding cargo planes. The company raised its earnings outlook for the year to $17.80-$19.00 per share, showcasing resilience amidst disruptions and pursuing cost-cutting initiatives to enhance operational efficiency. FedEx shares rose 1.8% to $287.12, reflecting strong investor confidence in its future performance.
FedEx Reports Strong Fiscal Q2 Earnings Amid Operational Challenges
Memphis, Tennessee – FedEx Corp. (FDX) announced a fiscal second-quarter profit of $956 million, or $4.04 per share, with adjusted earnings of $4.82 per share, surpassing Wall Street expectations of $4.07 per share. The company reported revenue of $23.47 billion, exceeding analyst forecasts of $22.86 billion. Despite operational challenges, FedEx raised its full-year earnings outlook to a range of $17.80 to $19.00 per share.
Operational Challenges and Cost Impacts
During the critical holiday shipping season, FedEx faced unexpected costs totaling $175 million due to the grounding of its MD-11 cargo planes following a deadly crash involving a similar UPS aircraft. This grounding disrupted operations, leading FedEx to seek alternative transportation methods, including trucks and leased aircraft. CFO John Dietrich indicated that these disruptions, along with expenses related to the planned spin-off of the Freight division, would impact earnings for the quarter ending February 28, 2026.
Financial Performance and Outlook
Despite these challenges, FedEx reported an adjusted profit of $1.14 billion, or $4.82 per share, for the fiscal second quarter, up from $990 million, or $4.05 per share, year-over-year. The company now projects annual profit in line with updated estimates, demonstrating resilience and strategic planning amid turbulent times.
Operational Highlights
FedEx’s Express segment improved in the second quarter, driven by higher demand in the U.S. The company added lucrative healthcare and automotive clients, which helped boost revenue. Moreover, business-to-business shipments saw a rise, aided by the establishment of a dedicated team to handle shipments related to the burgeoning data center construction sector. However, operating results at FedEx’s Ground division decreased in line with broader industry trends.
Cost-Cutting Initiatives
FedEx has embarked on a campaign to streamline operations, seeking to reduce billions from its operating base by idling facilities, closing sites, and integrating its formerly separate Ground division. This proactive approach aims to enhance operational efficiency and preserve profitability in the upcoming fiscal year ending in May 2026.
Stock Performance
As of December 19, 2025, FedEx shares are trading at $287.12, reflecting a 1.8% increase from the previous close. This positive trajectory indicates investor confidence in the company’s strategic plans and ongoing commitment to innovation.
Frequently Asked Questions (FAQ)
What were FedEx’s fiscal second-quarter earnings?
FedEx reported a fiscal second-quarter profit of $956 million, or $4.04 per share, with adjusted earnings of $4.82 per share, surpassing Wall Street expectations of $4.07 per share. The company reported revenue of $23.47 billion, exceeding analyst forecasts of $22.86 billion.
What operational challenges did FedEx face during the holiday season?
FedEx faced unexpected costs totaling $175 million due to the grounding of its MD-11 cargo planes following a deadly crash involving a similar UPS aircraft. This grounding disrupted operations, leading FedEx to seek alternative transportation methods, including trucks and leased aircraft. CFO John Dietrich indicated that these disruptions, along with expenses related to the planned spin-off of the Freight division, would impact earnings for the quarter ending February 28, 2026.
What is FedEx’s full-year earnings outlook?
FedEx now projects annual profit of $17.80 to $19.00 per share.
What cost-cutting initiatives is FedEx implementing?
FedEx has been pursuing initiatives to reduce billions from its operating base by idling facilities, closing sites, and integrating its formerly separate Ground division.
What is FedEx’s current stock performance?
As of December 19, 2025, FedEx shares are trading at $287.12, reflecting a 1.8% increase from the previous close.
Key Features of FedEx’s Fiscal Q2 Earnings Report
| Feature | Details |
|---|---|
| Fiscal Q2 Profit | $956 million, or $4.04 per share; adjusted earnings of $4.82 per share |
| Revenue | $23.47 billion |
| Full-Year Earnings Outlook | $17.80 to $19.00 per share |
| Current Stock Price | $287.12 |
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