FedEx Stock Drops 1.39% in Two Days, Trading Volume Ranks 226th

On June 5, 2025, FedEx (FDX) closed at $217.89, marking a 0.99% decline, extending its two-day losing streak with a total drop of 1.39%. The trading volume reached $4.26 billion, placing it 226th in the day's market activity.

FedEx's stock has experienced mixed movements as investors weigh the company's fresh growth initiatives against mounting labor pressures and cost-cutting measures. The Freight segment of the company saw a 23% decline in operating income to $261 million for the quarter, down from $341 million in the previous quarter, due to lower demand.

FedEx is facing revenue pressure due to subdued demand, concerns surrounding upcoming union negotiations, and a decline in package volumes. The company's revenue growth increased by 2% year-over-year, while adjusted operating income grew by 12%. However, FedEx Freight revenue declined by 5% due to lower volumes and fuel surcharges.

JPMorgan has adjusted its price target for FedEx, lowering it from $280 to $260 while maintaining an Overweight rating. The firm expressed caution ahead of FedEx's upcoming earnings announcement on June 24, citing concerns about stagnant demand and ongoing tariff uncertainties. Despite these challenges, JPMorgan remains optimistic about FedEx's longer-term prospects, noting the potential benefits of the Freight spin-off and the ongoing Network 2.0 integration.

FedEx's adjusted EPS outlook for FY25 has been lowered to $18 to $18.60 due to uncertain demand and inflationary pressures. The expiration of the US Postal Service contract resulted in a $180 million headwind to adjusted operating income. Weakness in the industrial economy continued to pressure higher-margin B2B volumes, affecting overall performance.