FedEx guided fiscal 2025 adjusted earnings below consensus despite beating Q4 revenue and EPS expectations.
FedEx reported Q4 revenue of $25.01 billion and earnings of $6.31 per share, both exceeding forecasts. The company highlighted 13% revenue growth, driven by B2B services and higher-margin sectors like healthcare and data centers, alongside $4.7 billion in adjusted free cash flow for the fiscal year.
Despite the strong quarter, FedEx projected fiscal 2025 adjusted earnings between $16.90 and $18.10 per share, falling short of analyst expectations. The guidance shift raised concerns about rising costs outpacing revenue growth, overshadowing the company’s sales momentum.
Shares dropped 6.5% in after-hours trading as investors focused on the earnings outlook rather than the quarter’s top-line performance.