Shares of FedEx Corp. (NYSE: FDX) stayed inexperienced on Friday. The inventory has dropped 14% over the previous three months. The package deal supply firm is scheduled to report its third quarter 2025 earnings outcomes on Thursday, March 20, after market shut. Right here’s a take 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 yr 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 setting, with weak spot within the industrial financial system that has negatively impacted its B2B volumes, particularly within the US home package deal and LTL markets. In Q2, strain on volumes, led by weak spot within the US home market, was partly offset by sturdy worldwide progress.
The cargo large anticipates consolidated income to be up barely YoY within the third quarter. Revenues within the Federal Specific section are anticipated to see progress through the again half of fiscal yr 2025, supported by floor residential and worldwide financial system quantity progress, pushed by Asia and European markets. This bodes properly for Q3.
Nevertheless, the FedEx Freight section is predicted to see a slight income decline within the second half of the yr, because of softness in common day by day shipments and modest yield enchancment. This may increasingly impression Q3 outcomes.
FedEx is predicted to learn from its DRIVE program, which continues to generate value 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 complete yr 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. Nevertheless, continued softness within the US industrial financial system and decrease gasoline costs are anticipated to strain working earnings in FedEx Freight.
