FedEx reported strong fourth-quarter fiscal year 2025 results, with adjusted diluted earnings per share (EPS) of $6.07, an increase from $5.41 in the prior-year period, and revenue of $22.2 billion, up from $22.1 billion. For the full fiscal year 2025, adjusted diluted EPS was $18.19 on revenue of $87.9 billion.
The company successfully achieved its $2.2 billion fiscal 2025 DRIVE structural cost reduction target, bringing total DRIVE savings to $4.0 billion relative to fiscal year 2023. This demonstrates significant progress in reshaping its cost structure and improving operational leverage.
FedEx also showcased strong capital discipline, with capital expenditures for fiscal 2025 decreasing by 22% to $4.1 billion, marking the lowest capital spending in over a decade and representing 4.6% of revenue. The company returned approximately $4.3 billion to stockholders in FY25 through $3.0 billion in share repurchases and $1.3 billion in dividend payments.
Looking ahead to fiscal year 2026, FedEx forecasts an incremental $1 billion in transformation-related cost savings. For the first quarter of FY26, revenue is projected to be flat to up 2%, with adjusted EPS in the range of $3.40 to $4.00. Full-year FY26 adjusted EPS is expected to be between $17.20 and $19.00, with aircraft capital expenditures further reducing to approximately $1 billion.
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