Key Stats for FedEx Stock
- Price Change for FDX stock: -6%
- Current Share Price: $217
- 52-Week High: $314
- FDX Stock Price Target: $272
What Happened?
FedEx (FDX) stock is down almost 6% today, despite the logistics giant reporting better-than-expected fiscal fourth-quarter earnings results.
It reported adjusted earnings per share of $6.07, beating analyst estimates of $5.84, while revenue of $22.22 billion topped expectations of $21.79 billion. However, FDX stock tanked as investors focused on the company’s cautious first-quarter guidance.
For the upcoming fiscal first quarter of 2026, FedEx provided mixed guidance, with revenue expected to be flat to up 2% year-over-year.
Meanwhile, adjusted earnings per share of $3.40 to $4.00 fell slightly below Wall Street’s expectation of $4.06.
The disappointing guidance overshadowed the company’s achievement of its ambitious $4 billion cost-cutting target through its DRIVE program and plans to trim another $1 billion in fiscal 2026.
See FDX’s full analyst estimates, earnings results, and earnings transcript (It’s free) >>>
The quarter’s results came amid challenging global trade conditions, with CFO John Dietrich noting that the first-quarter revenue guidance includes a $170 million headwind from international exports due to the impacts of global trade policy.
Executive VP Brie Carere emphasized that the vast majority of this impact stems from China-to-U.S. trade disruptions, related to tariff policies affecting lower-value shipments.
What the Market Is Telling Us About FDX Stock
The adverse reaction to FDX stock reflects investor concerns about FedEx’s exposure to ongoing global trade tensions and their impact on the most profitable international routes.
Despite beating earnings expectations and successfully reducing capital spending to its lowest level in company history, investors are worried about near-term headwinds from trade policy changes and industrial economy weakness.
The decline in FDX stock also coincides with the recent passing of FedEx founder Fred Smith, adding an element of uncertainty about the company’s long-term leadership transition.
While CEO Raj Subramaniam has successfully guided FedEx through its transformation initiatives, Smith’s death marks the end of an era for the logistics pioneer he built over the course of five decades.
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However, its strong operational performance and successful cost-reduction efforts demonstrate management’s ability to navigate challenging conditions.
With the planned spin-off of FedEx Freight scheduled for June 2026 and continued focus on Network 2.0 optimization, the market appears to be weighing short-term trade disruptions against the logistics giant’s long-term strategic positioning.
FedEx’s ability to flex its global network capacity in response to changing trade flows showcases the operational advantages that should benefit FDX stock once economic conditions improve.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!