Shares of FedEx Corp. (NYSE: FDX) stayed inexperienced on Friday. The inventory has dropped 14% over the previous three months. The bundle supply firm is scheduled to report its third quarter 2025 earnings outcomes on Thursday, March 20, after market shut. Right here’s a have a look at what to anticipate from the earnings report:
Income
Analysts are projecting income of $21.9 billion for the third quarter of 2025, which compares to income of $21.7 billion reported in the identical quarter a 12 months in the past. Within the second quarter of 2025, income dipped 1% year-over-year to $22 billion.
Earnings
The consensus goal for incomes per share in Q3 2025 is $4.67, which means a rise of 21% from the prior-year interval. In Q2 2025, adjusted EPS rose 2% YoY to $4.05.
Factors to notice
FedEx has been tackling a difficult demand atmosphere, with weak spot within the industrial financial system that has negatively impacted its B2B volumes, particularly within the US home bundle and LTL markets. In Q2, strain on volumes, led by weak spot within the US home market, was partly offset by robust worldwide development.
The cargo big anticipates consolidated income to be up barely YoY within the third quarter. Revenues within the Federal Specific section are anticipated to see development in the course of the again half of fiscal 12 months 2025, supported by floor residential and worldwide financial system quantity development, pushed by Asia and European markets. This bodes effectively for Q3.
Nonetheless, the FedEx Freight section is anticipated to see a slight income decline within the second half of the 12 months, attributable to softness in common day by day shipments and modest yield enchancment. This may occasionally affect Q3 outcomes.
FedEx is anticipated to learn from its DRIVE program, which continues to generate price financial savings. The corporate achieved DRIVE financial savings of $540 million in Q2, and it anticipates these financial savings to construct incrementally in Q3 and This autumn to achieve $2.2 billion for the total 12 months of 2025.
FDX expects the underside line outcomes at its Federal Specific section to learn from DRIVE financial savings and inspiring peak demand in Q3. Nonetheless, continued softness within the US industrial financial system and decrease gas costs are anticipated to strain working income in FedEx Freight.
