FedEx Stock Plunges 5.47% on Cautious Outlook

On June 25, 2025, FedEx's stock price dropped by 5.47% in pre-market trading, reflecting investor concerns over the company's cautious outlook and lack of full-year earnings guidance.

FedEx's recent earnings report for the first quarter of fiscal year 2025 showed strong results, with revenue of $22.2 billion and adjusted earnings per share (EPS) of $6.07, surpassing Wall Street expectations. However, the company's management withheld full-year EPS guidance for fiscal year 2026, citing macroeconomic challenges and softening global trade demand.

Investors reacted negatively to the lack of a clear earnings outlook, leading to a significant drop in FedEx's stock price. The company's cautious tone about the year ahead, combined with concerns about future growth, triggered a sharp pullback in the stock. Despite successful cost-cutting measures and significant shareholder returns, FedEx is perceived more as a defensive stock rather than a growth-oriented leader.

FedEx's management highlighted the volatile global demand environment and the challenges posed by tariffs and trade tensions. The company's suspension of its annual financial outlook in June 2025 sent shockwaves through the logistics sector, with its stock plunging in after-hours trading. The absence of a firm forecast suggests that macroeconomic headwinds and softening global trade demand may persist well into fiscal year 2026.