FedEx Corp (NYSE:FDX) stock fell 3.22% (As on June 25, 11:20:18 AM UTC-4, Source: Google Finance) after the company forecast a worse-than-expected profit for the current quarter in a sign that soft parcel demand and uncertainty over global trade are unlikely to abate in the near term. US-China shipments — the company’s most profitable trade route, “deteriorated sharply” in May and volumes are expected to remain under pressure. The analysts had already reduced their 2026 profit estimates for FedEx in recent months, worried that weakening consumer confidence and soft industrial demand would overshadow the company’s efforts to slash costs and revamp its delivery network. Still, there are signs that the company’s long-running push to reduce expenses and combine FedEx’s ground and air shipping networks into a single operation is paying off. The company achieved its goal of cutting $2.2 billion in costs during its most recent fiscal year and expects an additional $1 billion in savings this year.

Moreover, FedEx Freight segment operating results decreased during the quarter due to lower fuel surcharges, reduced weight per shipment, higher healthcare costs, increased wage rates, and one fewer operating day. These factors were partially offset by higher base yield and a $33 million gain on the sale of a facility. Fourth quarter results include a noncash impairment charge of $21 million ($0.07 per diluted share) from the decision to permanently retire 12 aircraft, including seven A300-600 aircraft, three MD-11 aircraft, and two Boeing 757-200 aircraft, plus eight related engines. These retirements are aligned with the company’s fleet reduction and modernization strategy as the company continues to improve its global network efficiency and better align air network capacity with anticipated demand.

FDX in the fourth quarter of FY25 has reported the adjusted earnings per share of $6.07, beating the analysts’ estimates for the adjusted earnings per share of $5.81. Higher US and international export volumes, price increases and cost reductions provided a boost, while the expiration of its US Postal Service contract along with higher transportation and wage expenses weighed on results. The company had reported the adjusted revenue of $22.2 billion in the fourth quarter of FY25, beating the analysts’ estimates for revenue of $21.84 billion.

Adjusted earnings in the fiscal first quarter will be $3.40 to $4 a share, while the analysts surveyed by Bloomberg had projected $4.03, on average. Q1 FY26 a flat to 2% revenue growth rate is expected year over year.