FedEx reported first quarter fiscal 2025 revenue of $21.6 billion, a slight decline from $21.7 billion last year, while operating income dropped 27% to $1.1 billion. Net income fell 26% to $794 million, with diluted earnings per share of $3.21. The results were primarily impacted by a mix shift toward deferred services, which reduced demand for U.S. domestic priority services and constrained yield growth.Operating expenses increased due to higher wage and purchased transportation rates, though this was partially offset by lower structural costs from DRIVE initiatives. The company completed $1 billion in accelerated share repurchases during the quarter and made $300 million in voluntary pension contributions. Federal Express segment revenue declined 1% while FedEx Freight revenue decreased 2% amid lower shipments.Looking ahead, FedEx expects modest revenue growth in fiscal 2025 driven by deferred services, while continuing to execute its DRIVE program to reduce costs. The company maintained its capital expenditure forecast of $5.2 billion for the year and plans additional share repurchases of $1.5 billion. Management noted ongoing challenges from the macroeconomic environment and customer demand constraints.

FedEx reported first quarter fiscal 2025 revenue of $21.6 billion, a slight decline from $21.7 billion last year, while operating income dropped 27% to $1.1 billion. Net income fell 26% to $794 million, with diluted earnings per share of $3.21. The results were primarily impacted by a mix shift toward deferred services, which reduced demand for U.S. domestic priority services and constrained yield growth.Operating expenses increased due to higher wage and purchased transportation rates, though this was partially offset by lower structural costs from DRIVE initiatives. The company completed $1 billion in accelerated share repurchases during the quarter and made $300 million in voluntary pension contributions. Federal Express segment revenue declined 1% while FedEx Freight revenue decreased 2% amid lower shipments.Looking ahead, FedEx expects modest revenue growth in fiscal 2025 driven by deferred services, while continuing to execute its DRIVE program to reduce costs. The company maintained its capital expenditure forecast of $5.2 billion for the year and plans additional share repurchases of $1.5 billion. Management noted ongoing challenges from the macroeconomic environment and customer demand constraints.