Core Insights - FedEx anticipates a $1 billion reduction in its bottom line this fiscal year due to tariffs and decreased demand from China to the U.S. [1] - The company reported a $150 million impact from tariffs in the first quarter, attributing revenue declines to the end of the de minimis provision for Chinese imports [1][2] Financial Performance - U.S. domestic package revenue rose by 8% to $12.7 billion, contributing to an overall revenue growth of 3% to $19.1 billion for the quarter [3] - Net income increased by 4% to $824 million, aided by a $200 million cost reduction through network adjustments [3] Volume Trends - Domestic average daily volumes grew by 5% to 13.9 million packages, while international export volumes fell by 3% to 1.1 million parcels per day, particularly affecting the China-to-U.S. route [4] - The China-to-U.S. route accounts for approximately 2.5% of FedEx's consolidated revenue and is its most profitable intercontinental trade lane [4] Outlook and Customer Sentiment - FedEx expects "low-to-moderate growth" in peak season average daily volumes compared to the previous year, with a high-single-digit increase in total peak volume due to an extra day in the holiday season [5] - The company remains cautiously optimistic about holiday season growth, driven by large B2C retailers and brands [5][6] - FedEx has not observed a "pull forward" of goods in its business segments, despite trends in the ocean freight industry [5][6]