Financial Data and Key Metrics Changes - In Q2, the company achieved adjusted earnings per share of $4.82, representing a 19% year-over-year increase [27] - Consolidated revenue grew by 7% year-over-year, supporting a 60 basis points adjusted margin expansion and a 17% adjusted operating income growth [27] - Adjusted operating income increased by $231 million despite headwinds from global trade policy changes and other factors [27] Business Line Data and Key Metrics Changes - FedEx Express (FEC) revenue increased by 8% year-over-year, with adjusted operating income growing by 24% and adjusted operating margin expanding by 100 basis points [9][27] - FedEx Freight revenue declined by 2%, primarily due to lower average daily shipments, with adjusted operating income decreasing by $70 million [9][27] - B2B services contributed nearly half of the revenue growth, with significant wins in healthcare and automotive sectors [22] Market Data and Key Metrics Changes - U.S. domestic package revenue grew by 12%, with strength across all services [18] - International export volumes declined, particularly on the China to U.S. lane, impacting overall performance [18] - The company shifted capacity to the Asia to Europe lane, which has a favorable B2B mix [11] Company Strategy and Development Direction - The company is on track to spin off FedEx Freight as a separately listed public company by June 1, 2026, with a strong belief in the value that will be unlocked from this separation [8] - Continued focus on high-value segments such as B2B and healthcare is expected to drive future growth [22] - The company is scaling AI adoption across its workforce to enhance operational efficiency and customer service [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate external headwinds, including the grounding of the MD-11 fleet and global trade policy changes [7][10] - The outlook for adjusted EPS has been raised to $17.80-$19, reflecting strong operational execution and ongoing efficiency initiatives [30] - Management acknowledged the challenges in the LTL market but remains optimistic about future recovery and margin improvements [28] Other Important Information - The company has closed more than 150 facilities as part of its ongoing transformation efforts [14] - A global AI program has been launched to enhance innovation and customer service [15] - The company plans to implement a fuel surcharge adjustment to mitigate costs associated with maintaining service quality [24] Q&A Session Summary Question: Dynamics of capturing incremental volume share in the domestic U.S. package business - Management confirmed they are pleased with profitable market share growth and highlighted the focus on B2B strategies and rate discipline [39][40] Question: Breakdown of B2B revenue growth and its sustainability - Management indicated that nearly half of the revenue growth was from new B2B business, share of wallet improvements, and strong performance from small business B2B [45][46] Question: Cost of service and impact of service component in annual cash incentive - Management acknowledged that while the service component adds financial headwinds, it is essential for maintaining service quality during the transformation [48][50] Question: Impact of LTL business and spin-off costs on financial outlook - Management clarified that a portion of the EBIT decline is due to market conditions, with some costs related to the spin-off preparation [53][81] Question: MD-11 aircraft return to service and associated costs - Management expects the MD-11 aircraft to return to service in Q4, with significant costs anticipated in Q3 due to peak season demands [58][60] Question: Breakdown of the $600 million headwind in the second half of the year - Management detailed that the headwind includes softness in the LTL business, costs from the MD-11 grounding, and increased variable compensation [64]

Core Viewpoint - Uber Technologies has announced a stock repurchase authorization of up to an additional $20 billion, indicating confidence in its business strategy and enhancing shareholder value [1][9]. Financial Performance - In 2024, Uber generated a record $6.9 billion in free cash flow and an adjusted EBITDA of $6.5 billion, showcasing strong financial health [4][9]. - Uber's shares have gained 53.7% year-to-date, significantly outperforming the Zacks Internet-Services industry's 5.9% increase during the same period [7]. Stock Buyback Context - The new $20 billion buyback follows a previous $7 billion authorization in 2024, which was the first in the company's history [4][9]. - The accelerated $1.5 billion stock buyback program, part of the $7 billion initiative, was completed in the first quarter of 2025 [4]. Industry Comparisons - Lyft has increased its share repurchase program to $750 million, with $500 million planned for use within the next 12 months, reflecting strong cash flow generation of $993 million over the trailing 12 months [5]. - Grab announced a $500 million share buyback program in 2024 and has repurchased 126 million Class A ordinary shares for $499.6 million as of June 30, 2025, indicating a shareholder-friendly approach [6]. Valuation Metrics - Uber trades at a 12-month forward price-to-sales ratio of 3.5X, which is considered inexpensive compared to its industry [11]. - The Zacks Consensus Estimate for Uber's earnings for 2025 and 2026 has been revised upward over the past 90 days, indicating positive market sentiment [13].