FedEx warns of 'continued weakness and uncertainty' in the US industrial economy

Economic Outlook - FedEx revised its financial outlook downward due to "continued weakness and uncertainty" in the US industrial sector [1][4] - The CEO indicated that freight and business-to-business demand were less soft in the third quarter compared to the previous period, but not enough to support the company's December guidance [1] Financial Performance - CFO John Dietrich stated that the macro environment is not expected to significantly improve, at least for the first half of 2026 [2] - FedEx shares fell approximately 5% in after-hours trading following the announcement [2][4] Cost Management - The company highlighted several cost-cutting and efficiency initiatives to counter economic headwinds, including the impact of reduced revenue from the end of a contract with the US Postal Service [2] Customer Behavior - FedEx's chief customer officer noted that customers have largely not chosen to ship goods early to avoid new import charges, with only one customer attempting it and regretting the decision due to excess inventory [3] - There are indications that higher prices may be forthcoming, as many customers are anticipating price increases or have already implemented them [3]