FedEx Grows Profits, Cuts Costs in Fiscal Q4 2025
FedEx Corporation (NYSE:FDX) reported its fiscal 2025 fourth-quarter earnings on June 24, 2025, achieving 1% revenue growth and an 8% increase in adjusted operating income, as well as 60 basis points of adjusted operating margin expansion. In fiscal 2025, it returned $4.3 billion to shareholders via stock buybacks and dividends, and executed major strides in network optimization and segment transformation despite significant industry and macroeconomic headwinds. The company also achieved $4 billion in structural cost reductions over two years compared to the fiscal 2023 baseline.On the earnings call, management called out FedEx's strategic progress, resilience amid trade disruptions, and strengthened capital efficiency.During the fiscal year, which ended May 31, FedEx achieved $2.2 billion in DRIVE structural cost reductions resulting in cumulative DRIVE savings of $4 billion since fiscal 2023. It completed its Network 2.0 optimization in Canada, and continues to optimize U.S. sites rapidly. As of the end of June, its Network 2.0 optimized stations will be handling an average of 2.5 million packages daily. Capital intensity was reduced to a multidecade low, and the company exceeded its $3.8 billion return-to-shareholder goal.Continue reading
FedEx Corporation (NYSE:FDX) reported its fiscal 2025 fourth-quarter earnings on June 24, 2025, achieving 1% revenue growth and an 8% increase in adjusted operating income, as well as 60 basis points of adjusted operating margin expansion. In fiscal 2025, it returned $4.3 billion to shareholders via stock buybacks and dividends, and executed major strides in network optimization and segment transformation despite significant industry and macroeconomic headwinds. The company also achieved $4 billion in structural cost reductions over two years compared to the fiscal 2023 baseline.
On the earnings call, management called out FedEx's strategic progress, resilience amid trade disruptions, and strengthened capital efficiency.
During the fiscal year, which ended May 31, FedEx achieved $2.2 billion in DRIVE structural cost reductions resulting in cumulative DRIVE savings of $4 billion since fiscal 2023. It completed its Network 2.0 optimization in Canada, and continues to optimize U.S. sites rapidly. As of the end of June, its Network 2.0 optimized stations will be handling an average of 2.5 million packages daily. Capital intensity was reduced to a multidecade low, and the company exceeded its $3.8 billion return-to-shareholder goal.
