Why Did FedEx Stock Plunge 5.58%?

On June 25, 2025, FedEx's stock price dropped by 5.58% in pre-market trading, reflecting significant market concerns and adjustments.

FedEx's decision to suspend its full-year forecast for fiscal 2026 has led to a decline in its stock price. This move comes after the company had already reduced its fiscal 2025 outlook three times in the past year. The suspension of the forecast indicates uncertainty in the company's future performance, which has weighed heavily on investor sentiment.

For the first quarter of fiscal 2026, FedEx expects adjusted earnings to be between $3.40 and $4 per share, which is below the analyst consensus. Despite this, the company anticipates revenue to be flat or increase by up to 2% year-over-year, which is better than market expectations. In its fourth quarter, FedEx reported revenue of $22.2 billion, a slight increase from the previous year, and adjusted net income of $1.46 billion, or $6.07 per share, both of which exceeded estimates.

FedEx's stock has lost nearly a fifth of its value since the start of the year, with significant drops following President Trump's "Liberation Day" tariff announcement. Concerns about potential tariffs leading to a decrease in shipping demand have further impacted the stock price. Additionally, the recent passing of FedEx's founder and former CEO, Fred Smith, has added to the company's challenges.