FedEx Shares Slip After Fiscal Q4 Earnings: ETFs in Focus
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 25 2025
0mins
Should l Buy FDX?
Source: NASDAQ.COM
FedEx Earnings Report: FedEx reported strong fourth-quarter fiscal 2025 results, exceeding earnings and revenue estimates, but provided a cautious outlook that led to a more than 5% drop in shares after market close. The company achieved its $4 billion cost-cutting goal and plans to cut an additional $1 billion in the upcoming fiscal year.
Impact on ETFs: The disappointing outlook from FedEx is expected to affect several ETFs with significant allocations to the company, including ProShares Supply Chain Logistics ETF, iShares U.S. Transportation ETF, First Trust Nasdaq Transportation ETF, and Pacer Industrials and Logistics ETF, which all have varying degrees of exposure to FedEx's performance.
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Analyst Views on FDX
Wall Street analysts forecast FDX stock price to fall
20 Analyst Rating
13 Buy
6 Hold
1 Sell
Moderate Buy
Current: 371.890
Low
210.00
Averages
315.05
High
365.00
Current: 371.890
Low
210.00
Averages
315.05
High
365.00
About FDX
FedEx Corporation provides customers and businesses with a portfolio of transportation, e-commerce, and business services. The Company offers integrated business solutions utilizing its flexible and efficient global network. Its segments include Federal Express, FedEx Freight, and Corporate, other, and eliminations. Federal Express segment includes express transportation, small-package ground delivery, and freight transportation, and it also operates combined sales, marketing, administrative, and information-technology functions in shared service operations for United States customers. FedEx Freight segment includes FedEx Freight (LTL freight transportation) and FedEx Custom Critical (time-critical transportation). Corporate, other, and elimination segments include FedEx Dataworks, Inc. (FedEx Dataworks), FedEx Office and Print Services, Inc. (FedEx Office), and FedEx Logistics, Inc. (FedEx Logistics). FedEx Logistics offers customs brokerage, specialty transportation, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- International Relations Strain: The US's maximum pressure campaign not only affects Iran but also strains relationships with China and India, particularly as nearly all Iranian oil exports are directed to China, complicating regional dynamics.
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- Aviation Industry Crisis: Experts warn that if the blockade persists, Europe's airline industry could face a
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- Diplomatic Progress Hopes: Vice President Vance stated that the next move lies with Iran following unsuccessful negotiations, suggesting that this optimistic outlook could influence market sentiment, even though actual progress remains limited.
- Significant Rate Impact: CNBC's Jim Cramer emphasized that low interest rates are a key driver behind the market's resilience, as investors focus on the impact of rates on stock valuations despite escalating geopolitical tensions, showcasing the market's strength.
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- Executive Departure: FedEx announced that CFO John Dietrich will step down on June 1, remaining with the company until July 31, marking a significant executive transition following the successful spin-off of FedEx Freight.
- Interim Appointment: Claude Russ, the enterprise vice president of Finance, will serve as interim CFO starting June 1, while the company conducts a thorough internal and external search for a permanent successor to ensure continuity in financial leadership.
- Financial Outlook Affirmed: FedEx reaffirmed its fiscal year 2026 outlook and 2029 targets, indicating confidence in its future financial performance despite a 0.59% decline in stock price during regular trading.
- Stock Price Movement: FedEx shares closed at $371.89 on Monday, down $2.19, but gained $0.03 or 0.01% in after-hours trading, reflecting a cautiously optimistic market sentiment regarding the company's future developments.
See More
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- Oil Price Fluctuations: Oil prices have dropped below $100 per barrel as the U.S. enforces a blockade on Iranian ports, with West Texas Intermediate falling 2.37% to $96.73, indicating market sensitivity to Middle Eastern tensions that could disrupt global energy supply chains.
- U.S. Blockade Action: The U.S. Navy began enforcing a blockade against Iranian ports on Monday, with Trump stating the goal is to force Iran back to the negotiating table; however, this action may escalate regional tensions and impact international trade and shipping security.
- Market Reactions: Despite falling oil prices, U.S. stocks rose, with the S&P 500 climbing 1% to its highest level since the war began, reflecting investor optimism about strong corporate earnings and limited impacts from the conflict.
- International Relations Strain: The U.K. pushed back against Trump's blockade claims, stating it is working with France to build a broader coalition for navigation freedom, while reports suggest China may supply new air-defense systems to Iran, complicating U.S.-China relations.
See More
FedEx CFO John Dietrich to Step Down Amid Spin-Off Completion
- Executive Change: FedEx CFO John Dietrich will step down on June 1, coinciding with the spin-off of FedEx Freight into a separate publicly traded entity, indicating executive turnover during the company's restructuring phase.
- Interim Leadership: Claude Russ, vice president of finance, will serve as interim CFO until a permanent successor is appointed, which may impact the stability of financial decision-making during this transition.
- Financial Guidance: FedEx confirmed its FY26 earnings guidance of $19.30 to $20.10 per share, with revenue expected to grow by 6% to 6.5%, reflecting a positive outlook despite market challenges.
- Long-Term Goals: Looking ahead to 2029, FedEx anticipates achieving $8 billion in operating income and an 8% operating margin, with plans to expand operating margins by 200 basis points compared to the FY26 midpoint, demonstrating confidence in future growth.
See More
