FedEx reported strong fiscal fourth-quarter earnings in its final quarter before the spin-off of its freight business, FedEx Freight, which became a separate publicly traded company on June 1 [1]. The company posted adjusted earnings per share of $6.31, surpassing analyst expectations of $5.96, and revenue of $25.01 billion, exceeding the expected $24.04 billion according to LSEG surveys [1]. For the period ended May 31, FedEx Express revenue reached $21.57 billion, also beating StreetAccount estimates of $20.75 billion [1].
The company highlighted a 3% year-over-year increase in domestic volume and a 3% increase in U.S. priority volume for the quarter [1]. For the full fiscal year, FedEx reported revenue of $94.7 billion, up from $87.9 billion the previous year [1]. In connection with the spin-off, FedEx Freight paid a cash dividend of approximately $4.1 billion to FedEx Corporation [1].
CEO Raj Subramaniam stated, "Our profitable growth strategy is working," emphasizing momentum in the company's global industrial network, structural improvements, and success in high-value growth markets [1]. He noted that the spin-off positions FedEx to further optimize its network, lower costs, create long-term value, and drive robust free cash flow [1].
Looking ahead, FedEx expects 11% year-over-year revenue growth and adjusted diluted earnings per share between $16.90 and $18.10 for the full year [1]. The company also announced a change in its fiscal year end from May 31 to December 31, effective earlier this month [1].
CONCLUSION
FedEx delivered strong fourth-quarter and full-year results, outperforming analyst expectations and demonstrating growth in key business segments. The successful spin-off of FedEx Freight and positive forward guidance signal confidence in the company's strategic direction and future performance.