Financial Performance - FedEx's second quarter results show increased domestic package volumes, suggesting a solid domestic economy [2] - The company is experiencing price traction, leading to higher margins on the package side than expected [2][3] - FedEx raised its annual revenue growth guidance from a previous 4-6% to 5-6% [3][4] - The company tightened its EPS range at the high end, indicating positive expectations [4] Strategic Initiatives - FedEx is merging its express and ground networks, with 20% integration currently and plans to reach 40% by next May and nearly 100% in 1-18 months, driving cost efficiencies and margin upside [3][6][7] - The company is spinning off its freight LTL business, which is expected to drive value [4][8] Potential Risks - International trade and tariffs have previously impacted FedEx's earnings, with Asia to US business down approximately 20% [9]