FedEx reported adjusted diluted earnings per share (EPS) of $4.05 for the second quarter of fiscal year 2025, an increase from $3.99 in the prior-year period, surpassing analyst expectations. However, consolidated revenue for the quarter was $22.0 billion, a slight decrease from $22.2 billion year-over-year, and fell short of revenue estimates.
The company announced a significant strategic decision to pursue a full separation of its FedEx Freight business, creating a new publicly traded company. This tax-efficient spin-off is expected to be completed within the next 18 months and aims to unlock substantial shareholder value by allowing both entities greater strategic focus and capital allocation flexibility.
Despite the adjusted EPS beat, FedEx lowered its full-year fiscal 2025 adjusted EPS outlook to a range of $19 to $20, down from the previous $20 to $21, citing continued weakness in the industrial economy. The company also completed $1 billion in share repurchases during the quarter, with plans for an additional $500 million in fiscal 2025, demonstrating a commitment to returning capital to shareholders.
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