FedEx reported a decline in Q2 2025 profits, with net income falling 18% to $741 million. Revenue dipped 1% to $21.97 billion as lower U.S. domestic package and freight volumes offset gains in international exports. Operating income decreased 18% to $1.05 billion, impacted by weaker demand and higher costs.The company's Federal Express segment saw flat revenue but 2% higher operating income, benefiting from increased deferred package volume and improved yields. However, FedEx Freight revenue dropped 11% on lower shipments. FedEx incurred $326 million in business optimization costs related to its DRIVE efficiency program.Despite headwinds, FedEx maintained its full-year outlook and announced an additional $500 million in planned share repurchases for fiscal 2025. The company continues to execute cost-saving initiatives and network optimization efforts to align with shifting demand patterns. FedEx also reaffirmed plans to separate its Freight business into a standalone public company within 18 months.

FedEx reported a decline in Q2 2025 profits, with net income falling 18% to $741 million. Revenue dipped 1% to $21.97 billion as lower U.S. domestic package and freight volumes offset gains in international exports. Operating income decreased 18% to $1.05 billion, impacted by weaker demand and higher costs.The company's Federal Express segment saw flat revenue but 2% higher operating income, benefiting from increased deferred package volume and improved yields. However, FedEx Freight revenue dropped 11% on lower shipments. FedEx incurred $326 million in business optimization costs related to its DRIVE efficiency program.Despite headwinds, FedEx maintained its full-year outlook and announced an additional $500 million in planned share repurchases for fiscal 2025. The company continues to execute cost-saving initiatives and network optimization efforts to align with shifting demand patterns. FedEx also reaffirmed plans to separate its Freight business into a standalone public company within 18 months.