FedEx (NYSE:FDX) shares fell more than 7% in pre-market today after the delivery giant lowered its full-year profit and revenue guidance, citing ongoing headwinds in the U.S. industrial sector and a challenging operating environment.
The company now expects adjusted earnings per share between $18 and $18.60 for the fiscal year ending May 2025—a downward revision from its earlier forecast of $19 to $20, which had already been cut from its initial $20 to $22 guidance.
FedEx also adjusted its revenue outlook, now anticipating flat to slightly negative year-over-year performance, compared to its prior expectation of approximately flat revenue.
Management attributed the revised guidance to persistent weakness in industrial demand, a key segment for FedEx’s business-to-business shipping. The sector has come under pressure amid broader economic uncertainty and growing concerns over new tariff policies proposed by President Donald Trump, which could further weigh on manufacturing activity.
Additionally, the company pointed to a compressed peak season and severe weather disruptions as factors contributing to a tough operating backdrop.
For the fiscal third quarter, FedEx reported adjusted EPS of $4.51 on $22.2 billion in revenue, beating revenue expectations of $21.92 billion but missing profit forecasts, which stood at $4.61 per share.