FedEx's stock rallies in extended trading after logistics company reinstates outlook for the full year
Evercore ISI downgrades FedEx shares to Hold from Buy.
FedEx will report a quarterly profit hit from President Donald Trump's decision to end tariff-exempt treatment for popular direct-to-consumer shipments when the global delivery firm reports results on Thursday, analysts said.
FedEx (NYSE: FDX) is set to disclose its fiscal Q1 2026 earnings on Thursday, September 18, 2025 (the fiscal year concludes in May). Historically, FDX stock has typically responded adversely to earnings announcements.
Besides Wall Street's top-and-bottom-line estimates for FedEx (FDX), review projections for some of its key metrics to gain a deeper understanding of how the company might have fared during the quarter ended August 2025.
FedEx faces tariff headwinds, weak demand, and a mixed earnings history as investors eye Q1 results and management updates.
FedEx's parcel delivery business faces low margins and tough competition, but cost-saving initiatives could boost profits by up to 50%. The planned spin-off of the high-margin freight segment is a key catalyst, potentially unlocking significant shareholder value and raising FedEx's valuation multiple. Despite industry challenges, FedEx is undervalued at 13x earnings; a more appropriate multiple is 16-17x, implying a 30% stock price upside.
If you're out, take a look at getting in. If you're in, don't bail out. FedEx's DRIVE initiative is delivering on cost reductions, with $4 billion in structural savings achieved. I outline the savings are demonstrable, not hot air. Management's new focus upon capital allocation, free cash flow, and returning capital to investors will spur share price appreciation.
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
FedEx (FDX) closed the most recent trading day at $233, moving 1.6% from the previous trading session.
FedEx is a global logistics leader, positioned for long-term growth through cost-cutting, AI-driven efficiency, and e-commerce tailwinds despite near-term headwinds. Transformation initiatives like DRIVE and Network 2.0 are set to deliver $6B in savings by 2027, offsetting revenue pressure from tariffs and USPS contract loss. FedEx trades at a discount to peers, with a forward P/E of 12.1 and analyst targets implying 20% upside, making it attractive for value investors.
The latest trading day saw FedEx (FDX) settling at $227.26, representing a -1.65% change from its previous close.