Why did FDX's Q3 2025 EPS surge?

The adjusted EPS for FDX's Q3 2025 reported at $4.51 reflects a significant year-over-year increase of 16.8%, primarily attributable to the following factors:

1. **Revenue Growth**: Total revenue increased by 2.3% year-over-year, reaching $22.2 billion, surpassing analysts’ expectations of $21.9 billion. This growth in revenue contributes directly to the higher EPS.
2. **Cost Management**: FedEx reported a 12% increase in adjusted operating income year-over-year, driven by revenue growth and cost savings. The company realized $600 million in DRIVE savings during the quarter, contributing to structural cost reductions.
3. **Strategic Initiatives**: FedEx's strategic initiatives, such as the "One FedEx" program, have focused on integration and streamlining operations, which likely led to improved efficiency and reduced costs.

These factors, combined with effective cost management and strategic initiatives, have collectively contributed to the surge in FDX's Q3 2025 EPS.