FedEx Stock Pops as Shipping Giant Reinstates Its Full-Year Outlook

FedEx shares jumped in extended trading Thursday after the shipping giant reinstated its full-year outlook.

The shares were down nearly 20% for the year heading into Thursday’s report, weighed down when FedEx suspended its outlook in June amid concerns shipping demand could take a hit if higher tariffs lead to a pullback in Americans’ spending. Peer shipper UPS (UPS) held off on offering a full-year outlook in July.

FedEx said it expects 4% to 6% revenue growth this fiscal year, above analysts’ estimates as compiled by Visible Alpha. Its forecast for adjusted earnings per share, a range of $17.20 to $19, was roughly in line with projections at the midpoint.

FedEx also said it’s on track to reduce costs by $1 billion in fiscal 2026 and spin off its freight business by next June,

The company logged stronger-than-expected results in its fiscal first quarter. It posted adjusted earnings per share of $3.83 on revenue that climbed close to 3% to $22.2 billion in the first quarter, topping analysts’ estimates as volumes in the U.S. rose.

FedEx CEO Raj Subramaniam said the results underscored “the success of our strategic initiatives,” pointing to cost reductions and efforts to improve the customer experience.

“Looking ahead, we are prepared to navigate a range of scenarios, while remaining focused on value creation and maintaining a disciplined approach to capital allocation,” said CFO John Dietrich.