FedEx(US:FDX) Benzinga·2025-09-19 06:48Core Insights - FedEx Corp. reported a better-than-expected first quarter for fiscal year 2026, driven by strong U.S. domestic growth and significant cost-cutting measures [1] - The company anticipates a $1 billion headwind for the full year due to the elimination of the de minimis trade exemption, impacting international trade and shipping volumes [1][2] Financial Performance - FedEx's first-quarter revenue reached $22.2 billion, surpassing analyst estimates of $21.67 billion, with adjusted earnings of $3.83 per share, exceeding expectations of $3.62 per share [5] - The company expects revenue growth of 4% to 6% year-over-year for fiscal 2026, with full-year adjusted earnings projected between $17.20 to $19 per diluted share [6] Domestic vs. International Performance - U.S. domestic package services experienced a 5% increase in average daily volume year-over-year, contrasting with challenges in international shipping due to the de minimis policy [4] - The removal of the de minimis exemption, which allowed goods valued under $800 to enter the U.S. duty-free, is significantly affecting FedEx's Asia-to-U.S. shipping lanes [2][3] Strategic Developments - FedEx secured major new business wins, including being named the primary national parcel carrier for Best Buy and onboarding larger, heavier packages from Amazon, expected to be completed by the third quarter [5] - The company is focused on transformation savings of $1 billion, which is embedded in the anticipated lost opportunities due to the de minimis policy [3][6] Market Reaction - FedEx's stock rose by 0.32% on Thursday and 5.48% in after-hours trading, although it remains down 17.42% year-to-date and 24.60% over the year [8]