FedEx Corp (FDX.N) has cut its full-year profit and revenue forecasts due to soft demand and uncertainty in the US industrial economy. The company’s shares fell 5.3% to $232.29 in after-hours trade.
The parcel delivery firm attributed the revised forecast to weakness in the US industrial economy, which is constraining demand for its business-to-business services. FedEx has been slashing costs as less lucrative e-commerce delivery demand outperforms higher-margin shipments between businesses.
Rival UPS (UPS.N) stock fell 1.1%. Experts believe new and threatened tariffs from the Trump administration could spark a recession and trade war, further weakening transportation and delivery demand.
FedEx lowered its adjusted profit forecast to $18 to $18.60 per share for the fiscal year ending May 2025. The company also expects revenue to be flat to slightly down year-on-year.
FedEx CEO Raj Subramaniam said the results came as the company navigates a challenging operating environment, including compressed peak season and severe weather events.
Source: https://www.reuters.com/business/fedex-cuts-full-year-revenue-forecast-it-struggles-replace-usps-contract-loss-2025-03-20