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FedEx 8-K Report, Financial Results (Jun 24, 2025)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed June 24, 2025
Period End
June 24, 2025
Security
FDX
In the record · 2016–202610-K1210-Q328-K159

FDX filed 12 annual reports (10-K), 32 quarterly reports (10-Q) and 159 current reports (8-K) between 2016 and 2026.

  1. Restructuring8-K · Jan ’19Jan ’19
  2. Restructuring8-K · Jan ’21Jan ’21
  3. Leadership change8-K · Sep ’22Sep ’22
  4. Leadership change8-K · Oct ’26Oct ’26

01—Abstract

Summary

Summary of the 8-K filed June 24, 2025. Cited figures are marked; the original filing is the authoritative source.

FedEx (FDX) reported fiscal fourth-quarter 2025 results (quarter ended May 31, 2025) with GAAP diluted EPS of $6.88a and adjusted diluted EPS of $6.07, versus $5.94 GAAP and $5.41 adjusted a year earlier.

Revenue was $22.2 billionb, up about 1% year over year, while adjusted operating margin improved to 9.1% from 8.5%, supported by the company achieving its $2.2 billion DRIVE structural cost reduction target for fiscal 2025. Results were helped by higher Federal Express volume and higher base yields at each transportation segment, partly offset by higher purchased transportation and wage costs, one fewer operating day, and the expiration of the USPS contract. Much of the GAAP-to-adjusted gap came from a large non-cash mark-to-market pension adjustment (a $1.63 per-share benefit in Q4), which flatters GAAP results and is excluded from the adjusted figures.

For full fiscal 2025, GAAP diluted EPS was $16.81c versus adjusted EPS of $18.19, with revenue of $87.9 billion (flat year over year) and adjusted operating margin of 7.0% versus 7.1% a year earlier. Capital spending fell 22% to $4.1 billion, or 4.6% of revenue, the lowest level in company history. FedEx returned about $4.3 billion to shareholders through $3.0 billion of buybacks and $1.3 billion of dividends, and it plans a 5% dividend increase to $5.80 per share for fiscal 2026.

Management guided to fiscal 2026 Q1 GAAP EPS of $2.90 to $3.50d (adjusted $3.40 to $4.00), targets $1 billion of permanent cost reductions from the DRIVE and Network 2.0 programs, and plans $4.5 billion of capital spending. The release also notes the planned tax-free spin-off of FedEx Freight and the passing of founder Frederick W. Smith.

02—Key points

Key Highlights

  1. Q4 FY2025 GAAP diluted EPS of $6.88 and adjusted EPS of $6.07, up from $5.94 GAAP and $5.41 adjusted in the prior-year quarter.
  2. Adjusted Q4 operating margin improved to 9.1% from 8.5%, with GAAP operating margin at 8.1% versus 7.0%, as the company hit its $2.2 billion DRIVE cost reduction target.
  3. Full-year FY2025 revenue was $87.9 billion, essentially flat, while adjusted operating margin slipped to 7.0% from 7.1%.
  4. Capital spending fell 22% to $4.1 billion (4.6% of revenue), the lowest capital intensity in company history.
  5. FedEx returned about $4.3 billion to shareholders in FY2025 ($3.0 billion buybacks, $1.3 billion dividends) and plans a 5% dividend increase to $5.80 per share.
  6. FY2026 guidance includes $1 billion of permanent cost reductions, up to $600 million of pension contributions, and $4.5 billion of capital spending; Q1 FY2026 GAAP EPS guided to $2.90 to $3.50.
  7. Large GAAP vs. adjusted gap is driven by a non-cash pension mark-to-market benefit of $1.63 per share in Q4, so GAAP earnings quality should be weighed carefully.

03—Questions

Frequently Asked Questions

  1. Why is there such a large difference between GAAP and adjusted EPS?

    The GAAP figure includes a non-cash mark-to-market pension adjustment worth about $1.63 per diluted share in Q4 FY2025 (about $1.60 for the full year), which increases reported earnings. Adjusted results also exclude business optimization costs, the FedEx Freight spin-off costs, international regulatory and legacy FedEx Ground legal matters, and asset impairments. Investors should treat the pension benefit as non-operating and largely non-recurring.

  2. What drove the improvement in fourth-quarter profitability?

    Federal Express benefited from DRIVE cost reductions, higher U.S. and international export volume, and higher base yields. Those gains were partly offset by higher purchased transportation and wage costs, one fewer operating day, and the expiration of the USPS contract. FedEx Freight operating income declined on lower fuel surcharges, lower weight per shipment, and higher costs.

  3. What is FedEx's outlook for fiscal 2026?

    For Q1 FY2026, FedEx expects revenue growth of flat to 2%, a tax rate of about 25%, and GAAP diluted EPS of $2.90 to $3.50 ($3.40 to $4.00 adjusted). For the full year, it targets $1 billion of permanent cost reductions, pension contributions of up to $600 million, and $4.5 billion of capital spending. Forecasts assume current economic and fuel price expectations and no significant new adverse trade or geopolitical developments.

  4. How is FedEx returning capital to shareholders?

    In FY2025, FedEx repurchased about 10.9 million shares for $3.0 billion, above its original $2.5 billion plan, and paid $1.3 billion in dividends. About $2.1 billion remained under the 2024 repurchase authorization as of May 31, 2025. The company plans to raise the annual dividend 5% to $5.80 per share and continue a robust buyback program in FY2026.

  5. What is the status of the planned FedEx Freight spin-off?

    FedEx is pursuing a tax-free spin-off of FedEx Freight into a separate publicly traded company. Costs tied to the separation were $38 million for FY2025 and are expected to total $20 million in Q1 FY2026. Management cautions that the anticipated benefits and timing are not assured, and the release does not provide a completion date.

04—Continue

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