In a Thursday interview with CNBC's Jim Cramer, FedEx CEO Raj Subramaniam said his company can do well even if there is a supply chain shakeup."As the supply chain patterns change, we are here, there and everywhere," he said. "That's the advantage people sometimes miss, the fact that we have a scaled network in place, provides us an advantage in these dynamic times."President-elect Donald Trump has threatened to drastically hike import tariffs for several countries, especially China, and these moves would l ...

FedEx (FDX) came out with quarterly earnings of $4.05 per share, beating the Zacks Consensus Estimate of $3.90 per share. This compares to earnings of $3.99 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 3.85%. A quarter ago, it was expected that this package delivery company would post earnings of $4.82 per share when it actually produced earnings of $3.60, delivering a surprise of -25.31%.Over the last four quarters, the co ...

Core Viewpoint - FedEx is spinning off its freight business into a new publicly traded company called FedEx Freight, allowing the company to focus on its parcel shipping services amid slowing demand in the express delivery market [1][2][3][5]. Group 1: Company Strategy - The separation of FedEx Freight from FedEx will occur over the next 18 months [1][3]. - The new company, FedEx Freight, will specialize in handling large cargo, while FedEx will continue to manage parcel shipping, which is more familiar to consumers [3]. - CEO Raj Subramaniam stated that this process aims to unlock value for the Freight business and enhance value for stockholders [4]. Group 2: Financial Performance - FedEx has reduced its profit estimates for the 2025 fiscal year, citing a "challenging demand environment" [5]. - The company reported lower-than-expected revenue and profit from FedEx Freight due to sustained weakness in US industrial production, which has negatively impacted demand in the less-than-truckload industry [5]. - Following the announcement of the spinoff, FedEx shares increased by approximately 9% in after-hours trading [3]. Group 3: Market Trends - The express delivery sector, including FedEx and its competitor UPS, has experienced decreased demand for next-day shipping as customers opt for more cost-effective slower shipping options [6].

FedEx (FDX) shares jumped in extended trading Thursday after the shipping giant announced plans to spin off its Freight business as a standalone company. The shipping giant said the process to separate its Freight business will start immediately, and likely be completed within the next 18 months. Ahead of the announcement, Citi analysts said last week that spinning off the Freight business into a standalone company could "unlock value" for the business, but suggested the move might not be the best option i ...

About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, ...

PART I. FINANCIAL INFORMATION This section details the company's financial statements, notes, and management's analysis of its performance and condition [Financial Statements](index=2&type=section&id=ITEM%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for the quarter ended November 30, 2024, along with notes on accounting policies and significant events [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet highlights show changes in total assets, liabilities, and stockholders' investment between November 30, 2024, and May 31, 2024 Condensed Consolidated Balance Sheet Highlights (in millions) | Balance Sheet Item | Nov 30, 2024 (Unaudited) | May 31, 2024 | | :--- | :--- | :--- | | **Total current assets** | $17,721 | $18,207 | | **Net property and equipment** | $41,006 | $41,491 | | **Total assets** | **$85,481** | **$87,007** | | **Total current liabilities** | $14,392 | $13,355 | | **Long-term debt, less current portion** | $19,433 | $20,135 | | **Total liabilities** | $59,021 | $59,425 | | **Total common stockholders' investment** | $26,460 | $27,582 | [Condensed Consolidated Statements of Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) This statement summarizes the company's revenue, operating income, net income, and diluted EPS for the three and six months ended November 30, 2024, compared to the prior year Income Statement Summary (in millions, except per share data) | Metric | Three Months Ended Nov 30, 2024 | Three Months Ended Nov 30, 2023 | Six Months Ended Nov 30, 2024 | Six Months Ended Nov 30, 2023 | | :--- | :--- | :--- | :--- | :--- | | **Revenue** | $21,967 | $22,165 | $43,546 | $43,846 | | **Operating Income** | $1,052 | $1,276 | $2,132 | $2,761 | | **Net Income** | $741 | $900 | $1,535 | $1,978 | | **Diluted EPS** | $3.03 | $3.55 | $6.24 | $7.79 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This statement details cash flows from operating, investing, and financing activities, showing the net decrease in cash for the six months ended November 30, 2024 Cash Flow Summary (in millions) | Cash Flow Activity | Six Months Ended Nov 30, 2024 | Six Months Ended Nov 30, 2023 | | :--- | :--- | :--- | | **Cash provided by operating activities** | $2,505 | $4,004 | | **Cash used in investing activities** | ($1,606) | ($2,608) | | **Cash used in financing activities** | ($2,309) | ($1,518) | | **Net decrease in cash** | ($1,472) | ($127) | | **Cash and cash equivalents at end of period** | $5,029 | $6,729 | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) These notes provide detailed explanations of significant accounting policies, business reorganizations, optimization costs, and share repurchase activities - As part of the 'one FedEx' consolidation plan, FedEx Ground and FedEx Services merged into Federal Express on **June 1, 2024**, creating a **unified air-ground network**, with Federal Express and FedEx Freight now being the **two reportable segments**[24](index=24&type=chunk) - On **December 19, 2024**, the Board of Directors decided to pursue a **full separation of FedEx Freight** through the capital markets, creating a new publicly traded company. The transaction is expected to be **tax-free** and executed within the next **18 months**[26](index=26&type=chunk) - The company incurred business optimization costs of **$326 million** for the three months and **$454 million** for the six months ended **November 30, 2024**, primarily related to severance and professional services under the DRIVE program and a European workforce reduction plan[41](index=41&type=chunk) - During the six months ended **November 30, 2024**, the company repurchased **7.1 million shares** for a total of **$2.0 billion**. As of **November 30, 2024**, **$3.1 billion** remained available for repurchases under the **2024 stock repurchase program**[60](index=60&type=chunk) [Management's Discussion and Analysis of Results of Operations and Financial Condition (MD&A)](index=21&type=section&id=ITEM%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Results%20of%20Operations%20and%20Financial%20Condition) Management discusses the challenging macroeconomic environment, leading to declining operating income, partially offset by cost savings, and outlines plans for FedEx Freight separation and capital expenditures [Trends Affecting Our Business](index=21&type=section&id=Trends%20Affecting%20Our%20Business) This section discusses how macroeconomic conditions, including weakened global industrial production, inflation, and lower fuel prices, are impacting the company's business volumes and yields - The business is vulnerable to **macroeconomic conditions**, with **weakened global industrial production** and a **decline in U.S. consumer goods imports** pressuring package and freight volumes[109](index=109&type=chunk) - **Elevated global inflation and interest rates** are **negatively affecting consumer and business spending**, putting **pressure on demand** for transportation services, particularly **priority services**[110](index=110&type=chunk) - **Lower fuel prices** during the second quarter and first half of 2025 **negatively affected yields** through **lower fuel surcharges**, although this also **reduced fuel expense**[111](index=111&type=chunk) [Consolidated Results](index=22&type=section&id=Consolidated%20Results) This section presents the consolidated operating results, highlighting declines in revenue, operating income, net income, and EPS, influenced by demand shifts and optimization costs Consolidated Operating Results (in millions, except per share data) | Metric | Q2 2025 | Q2 2024 | % Change | H1 2025 | H1 2024 | % Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Revenue** | $21,967 | $22,165 | (1%) | $43,546 | $43,846 | (1%) | | **Operating Income** | $1,052 | $1,276 | (18%) | $2,132 | $2,761 | (23%) | | **Net Income** | $741 | $900 | (18%) | $1,535 | $1,978 | (22%) | | **Diluted EPS** | $3.03 | $3.55 | (15%) | $6.24 | $7.79 | (20%) | - Operating income **declined** due to **lower U.S. domestic demand**, **higher purchased transportation and wage rates**, and **increased business optimization costs**. This was partly offset by **strong international export demand**, **yield improvements**, and **DRIVE cost savings**[117](index=117&type=chunk) - Business optimization costs under the DRIVE program totaled **$326 million** in **Q2 2025** and **$454 million** in **H1 2025**, up from **$145 million** and **$250 million** in the respective prior-year periods[118](index=118&type=chunk) - The company repurchased **$2.0 billion** of common stock in the **first half of 2025**, which **benefited diluted EPS by $0.10**[119](index=119&type=chunk) [Federal Express Segment](index=29&type=section&id=Federal%20Express%20Segment) This section details the Federal Express segment's operating results, noting stable revenue, increased Q2 operating income, and significant shifts in U.S. freight and international economy package volumes Federal Express Segment Operating Results (in millions) | Metric | Q2 2025 | Q2 2024 | % Change | H1 2025 | H1 2024 | % Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Total Revenue** | $18,841 | $18,773 | 0% | $37,146 | $37,199 | 0% | | **Operating Income** | $1,052 | $1,035 | 2% | $2,005 | $2,341 | (14%) | - U.S. average daily freight pounds **decreased significantly** (**51%** in **Q2**) primarily due to the **expiration of the USPS contract** on **September 29, 2024**[166](index=166&type=chunk) - International economy package volume **grew strongly** (**44%** in **Q2**) due to **continued growth in deferred service offerings** amid global macroeconomic conditions[166](index=166&type=chunk) - Operating income **increased in Q2** due to **higher base yields**, but **decreased in H1** due to **increased operating expenses** (wages, purchased transport) and **one fewer operating day**, **partially offset by DRIVE initiatives**[168](index=168&type=chunk) [FedEx Freight Segment](index=33&type=section&id=FedEx%20Freight%20Segment) This section analyzes the FedEx Freight segment's operating results, showing decreased revenue and operating income due to lower shipments and yields amid reduced demand FedEx Freight Segment Operating Results (in millions) | Metric | Q2 2025 | Q2 2024 | % Change | H1 2025 | H1 2024 | % Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Revenue** | $2,177 | $2,452 | (11%) | $4,506 | $4,837 | (7%) | | **Operating Income** | $312 | $491 | (36%) | $751 | $973 | (23%) | | **Operating Margin** | 14.3% | 20.0% | (570 bps) | 16.7% | 20.1% | (340 bps) | - Revenue **decreased** due to **lower shipments and yields**, driven by **reduced demand** from macroeconomic conditions. **Average daily shipments fell 8% in Q2 and 5% in H1**[175](index=175&type=chunk)[177](index=177&type=chunk) - Operating income **declined significantly** due to **lower revenue**, which was **partially offset by reduced operating expenses** from **lower volumes and fuel prices**[178](index=178&type=chunk) [Financial Condition](index=34&type=section&id=Financial%20Condition) This section reviews the company's financial condition, including cash flow from operations, capital expenditure plans, liquidity, and ongoing share repurchase activities - **Cash from operating activities decreased to $2.5 billion in H1 2025 from $4.0 billion in H1 2024**, **primarily due to working capital changes**[181](index=181&type=chunk)[184](index=184&type=chunk) - **Capital expenditures are expected to be approximately $5.2 billion for fiscal 2025**, **in line with 2024**, with a **shift from aircraft spending to investments in network optimization and facility modernization**[146](index=146&type=chunk)[201](index=201&type=chunk) - The company held **$5.0 billion in cash and cash equivalents at November 30, 2024**, and had **$3.5 billion in available liquidity** under its credit agreements[198](index=198&type=chunk) - An additional **$500 million of common stock** is expected to be repurchased in the **remainder of fiscal 2025**, following the **$2.0 billion repurchased in the first half**[199](index=199&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=40&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section confirms no material changes in market risk exposures, identifying primary risks as foreign currency fluctuations and fuel price changes, largely mitigated by surcharges - There were **no material changes** in market risk sensitive instruments and positions as of **November 30, 2024**, compared to the disclosures in the Annual Report[217](index=217&type=chunk) - The principal foreign currency exchange rate risks relate to the **euro, Chinese yuan, British pound, Canadian dollar**, and other major currencies[218](index=218&type=chunk) - Market risk from changes in vehicle and jet fuel prices is **largely mitigated** by the company's **indexed fuel surcharges**[219](index=219&type=chunk) [Controls and Procedures](index=41&type=section&id=ITEM%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of November 30, 2024, with no material changes to internal control over financial reporting during the quarter - Management evaluated disclosure controls and procedures and concluded they were **effective as of November 30, 2024**[221](index=221&type=chunk) - **No changes** in internal control over financial reporting occurred during the quarter that have **materially affected** or are reasonably likely to materially affect internal controls[222](index=222&type=chunk) PART II. OTHER INFORMATION This section provides additional information including legal proceedings, risk factors, equity sales, and other corporate disclosures [Legal Proceedings](index=41&type=section&id=ITEM%201.%20Legal%20Proceedings) This section refers to Note 9 for material legal proceedings and clarifies that Federal Express assumed liability for all pending litigation from FedEx Ground and Services post-consolidation - For a description of material pending legal proceedings, refer to **Note 9** of the condensed consolidated financial statements[223](index=223&type=chunk) - Effective **June 1, 2024**, **Federal Express assumed liability** for all pending litigation to which FedEx Ground and FedEx Services were previously party, due to the **'one FedEx' consolidation**[223](index=223&type=chunk) [Risk Factors](index=41&type=page&id=ITEM%201A.%20Risk%20Factors) This section highlights new material risk factors, primarily concerning the planned separation of FedEx Freight and the increasing threat of significant data breaches or technology disruptions - A new risk factor has been introduced regarding the **planned separation of FedEx Freight**. The separation is subject to conditions beyond the company's control and may **not be completed on the contemplated terms or timeline, if at all**[225](index=225&type=chunk) - Challenges related to the FedEx Freight separation include **management distraction, significant costs, potential tax liabilities, and maintaining operational continuity**[226](index=226&type=chunk) - A **significant data breach or disruption to technology infrastructure** is highlighted as a key risk. The company's ability to operate and compete depends on the **security and reliability of its technology network**, which is subject to **increasing cyber threats**[232](index=232&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=44&type=section&id=ITEM%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q2 2025, FedEx repurchased approximately 3.7 million shares for $1.0 billion, with $3.1 billion remaining available under the 2024 stock repurchase program Issuer Purchases of Equity Securities (Q2 2025) | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | Sep. 1-30, 2024 | 3,253,763 | $270.93 | | Oct. 1-31, 2024 | — | — | | Nov. 1-30, 2024 | 443,010 | $274.74 | | **Total** | **3,696,773** | **N/A** | - In **Q2 2025**, the company completed ASR transactions resulting in the delivery of **2.7 million shares** and repurchased an additional **1.0 million shares** in the open market[244](index=244&type=chunk) - As of **December 19, 2024**, approximately **$3.1 billion** remained available for repurchases under the **2024 stock repurchase program**[245](index=245&type=chunk) [Other Information](index=44&type=section&id=ITEM%205.%20Other%20Information) This section reports no Rule 10b5-1 trading arrangement changes, an executive's extended retirement, and a minor payment to Iran's Intellectual Property Office under a U.S. government license - **No director or officer** of FedEx adopted, modified, or terminated any **Rule 10b5-1 trading arrangement** during the quarter ended **November 30, 2024**[247](index=247&type=chunk) - The retirement date for **Mark R. Allen**, Executive Vice President and Senior Advisor, was extended from December 31, 2024, to **May 31, 2025**[248](index=248&type=chunk) - Pursuant to an OFAC license, FedEx paid **$160** to the **Iran Intellectual Property Office (IIPO)** for **intellectual property protection efforts in Iran** during the quarter[250](index=250&type=chunk) [Exhibits](index=46&type=section&id=ITEM%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including corporate documents, officer certifications, and interactive data files - The report includes key corporate documents, such as the **Restated Certificate of Incorporation and Amended Bylaws**, as exhibits[252](index=252&type=chunk) - Certifications by the Principal Executive Officer and Principal Financial Officer pursuant to **Sections 302 and 906 of the Sarbanes-Oxley Act of 2002** are filed as exhibits[252](index=252&type=chunk)

Exhibit 99.1 1 FedEx Reports Second Quarter Diluted EPS of $3.03 and Adjusted Diluted EPS of $4.05 $1 Billion Share Repurchases Completed During Quarter Full-Year Fiscal 2025 Earnings Outlook Revised FedEx Completes FedEx Freight Assessment, Will Pursue Full Separation and Create a New Publicly Traded LTL Company MEMPHIS, Tenn., December 19, 2024 ... FedEx Corp. (NYSE: FDX) today reported the following consolidated results for the second quarter ended November 30 (adjusted measures exclude the item listed b ...

Group 1 - FedEx Corporation is set to release its fiscal second quarter earnings results on December 19, after the market closes [1] - Analysts anticipate FedEx will report quarterly earnings of $4.06 per share, an increase from $3.99 per share in the same period last year [2] - The company is projected to report revenue of $22.09 billion for the recent quarter, slightly down from $22.16 billion a year earlier [2] - FedEx's first-quarter results were disappointing, with adjusted earnings nearly 25% below consensus estimates [2] - FedEx shares experienced a decline of 1.5%, closing at $273.16 on Wednesday [2] Group 2 - JP Morgan analyst Brian Ossenbeck maintained an Overweight rating and raised the price target from $350 to $366 on December 3 [2] - Bernstein analyst David Vernon downgraded the stock from Outperform to Market Perform, reducing the price target from $337 to $316 on December 3 [2] - Barclays analyst Brandon Oglenski maintained an Overweight rating and increased the price target from $350 to $365 on November 13 [2] - Citigroup analyst Ariel Rosa maintained a Buy rating and raised the price target from $301 to $331 on November 12 [2] - BMO Capital analyst Fadi Chamoun maintained a Market Perform rating and cut the price target from $325 to $300 on September 20 [2] - The consensus price target for FedEx stock is $308.69 based on the ratings of 20 analysts, with a high of $356 from JP Morgan and a low of $200 from Morgan [2]

MEMPHIS, TENNESSEE - AUGUST 07: ( EDITORS NOTE: Image taken with a drone.) Aerial view of the FedEx ... [+] signage in the water along the 18th hole prior to the FedEx St. Jude Championship at TPC Southwind on August 7, 2022 in Memphis, Tennessee. (Photo by Ben Jared/PGA TOUR)PGA TOUR FedEx is scheduled to report earnings after Thursday’s close. The stock hit a record high of $319.90/share in 2021 and is currently trading near $329. The stock is prone to big moves after reporting earnings and can easily gap ...

FedEx Corp. FDX is set to report its fiscal second-quarter results on Thursday after the closing bell and analysts are expecting a decline in earnings. What To Know: FedEx reported disappointing first-quarter results in September with adjusted earnings nearly 25% below consensus estimates. The company cited a mix-shift that trended toward higher volumes of less profitable freight and weakness in its industrial and manufacturing customers. "The soft industrial economy is clearly weighing on the [business-to- ...