I'm cautiously optimistic about FedEx's future, says Jim Cramer

Financial Performance - FedEx reported a better-than-expected quarter, with earnings of $383 per share, surpassing Wall Street's expectation of $361 per share, representing a 6% earnings growth [1][4] - FedEx issued its first full-year forecast for the 2026 fiscal year, projecting 4% to 6% revenue growth, significantly higher than analysts' expectations of 11% [5] Market Dynamics and Strategy - FedEx's core FedEx Express business experienced a revenue increase of more than 4% year-over-year [4] - FedEx is focused on winning market share, particularly from UPS, through improved customer service rather than solely relying on price cuts [9][10] - FedEx is implementing "Network 20%" to improve the efficiency of its pickup and delivery system in North America, aiming to reduce costs without negatively impacting customer satisfaction [13][14] - FedEx is making efficiency-driven changes to its European network, reporting significant progress and its best new business quarter in Europe in the last two years [14][15] - FedEx is employing a "thericolor strategy" to enhance delivery speeds and profitability in its air freight business by increasing flexibility and reducing fixed costs [16] - FedEx successfully navigated the removal of Trump's dimminimous tariff exemption by leveraging its experience with China, positioning itself to assist shippers globally [8] Outlook and Valuation - Management expressed a more constructive view of the operating environment, describing it as "dynamic" despite challenges from a weak industrial economy and tariffs [6] - The stock is considered cheap, trading at less than 13 times the midpoint of its full-year earnings forecast, compared to an average market multiple of 25 times earnings [19][20] - FedEx pays a respectable 25% dividend yield, which is considered safe compared to UPS [20]