FedEx Reinstates Full-Year Outlook, Shares Jump on Cost-Cutting Measures

FedEx shares surged in extended trading after the shipping giant reinstated its fiscal year guidance, signaling confidence despite macroeconomic headwinds. The company now projects 4%-6% revenue growth—exceeding analyst expectations—with adjusted EPS forecast between $17.20 and $19.

First-quarter results beat estimates, with adjusted earnings of $3.83 per share on $22.2 billion revenue. CEO Raj Subramaniam attributed the performance to strategic cost reductions and operational improvements. "We're prepared to navigate multiple scenarios while maintaining capital discipline," added CFO John Dietrich.

The rebound comes after FedEx suspended guidance in June amid tariff-related demand concerns. UPS remains cautious, having withheld full-year projections in July. FedEx expects to spin off its freight division by June 2025 and achieve $1 billion in cost savings by fiscal 2026.