FedEx Stock Drops as Company Lowers Outlook for Third Straight Quarter

FedEx Stock Drops as Company Lowers Outlook for Third Straight Quarter

FedEx (FDX) shares declined over 5% in after-hours trading Thursday after the company reported weaker-than-expected earnings and cut its full-year outlook for the third consecutive quarter.

The shipping giant now expects full-year revenue to remain flat or slightly decline year-over-year, revising its previous forecast of "approximately flat" growth. Additionally, it lowered its earnings per share outlook to between $15.15 and $15.75, down from the prior range of $16.45 to $17.45.

In its fiscal third quarter, FedEx posted a 2% year-over-year revenue increase to $22.2 billion, surpassing analyst estimates. However, adjusted earnings came in at $1.09 billion, or $4.51 per share—an improvement from $970 million, or $3.86 per share, a year ago—but fell short of Wall Street expectations.

CEO Raj Subramaniam attributed the weaker results to "a very challenging operating environment, including a compressed peak season and severe weather events."

The report follows FedEx’s December announcement to spin off its Freight business into a standalone company. Year-to-date, FedEx shares have declined approximately 12% in 2025.