Can FDX sustain its Q3 2025 EPS growth trend?

**FedEx's ability to sustain its Q3 2025 EPS growth trend appears challenging** based on several factors:

1. **Economic Challenges**: FedEx has faced a challenging operating environment, with factors such as a compressed peak season, severe weather disruptions, and geopolitical uncertainty affecting package volumes and consumer sentiment. These conditions are likely to continue impacting the company's performance in the near term.
2. **Cost Management**: Despite the challenging environment, FedEx has implemented cost-cutting measures through its DRIVE program, which has contributed to improved profitability. However, the effectiveness of these measures in sustaining EPS growth may diminish if economic headwinds persist.
3. **Volume and Pricing Trends**: The company has experienced demand erosion, which has likely hurt volume and pricing trends in key segments such as Express. If these trends continue, they could put pressure on EPS growth in future quarters.
4. **Revenue Outlook**: FedEx has revised its fiscal 2025 revenue forecast to flat or slightly down, which suggests that the company may face difficulties in sustaining revenue growth. As EPS is influenced by revenue, this could impact the company's ability to sustain EPS growth.
5. **Analyst Expectations**: Analysts have lowered their price targets on FedEx following the Q3 earnings report, which may reflect a more cautious outlook on the company's future earnings potential. This could indicate that sustaining EPS growth may be more challenging than previously anticipated.

In conclusion, while FedEx has shown resilience in managing costs and improving profitability, the prevailing economic challenges and potential decline in revenue growth suggest that sustaining the Q3 2025 EPS growth trend may be difficult in the coming quarters. The company's focus on cost management and revenue growth will be critical in determining its future earnings performance.