FedEx Corp. (NYSE: FDX), the Memphis-based logistics and delivery services company, reported results for the fourth quarter of fiscal 2025, showing a stable year-over-year financial performance amid market challenges. The company recorded consolidated revenue of $22.22 billion for the quarter, an increase of 1% from $22.11 billion for the same period in the previous fiscal year.

FedEx achieved adjusted operating income of $2.02 billion in Q4, reflecting an 8% increase compared to the prior year’s $1.87 billion. This resulted in an adjusted operating margin expansion of 60 basis points to 9.1%. The company attributed the improved financial metrics to its ongoing DRIVE structural cost reduction initiatives, which have cumulatively achieved $2.2 billion in savings for fiscal 2025.

Net income for the quarter was $1.65 billion, resulting in diluted earnings per share of $6.88. This represents a 12% increase over the previous year’s adjusted net income of $1.47 billion and EPS of $5.94. For the fiscal year, FedEx reported total revenue of $87.93 billion, marking a marginal increase from $87.69 billion. Adjusted operating income for the full year amounted to $6.12 billion, down slightly from $6.24 billion, while net income decreased to $4.09 billion from $4.33 billion in fiscal 2024.

Capacity adjustments were made in response to varying demand conditions. In May, FedEx reduced capacity on its Asia to Americas lane by more than 35%, successfully aligning operational capacity with demand trends. The operating margin at FedEx Freight was reported at 20.8%, demonstrating strong profitability despite ongoing economic pressures characterized by reduced shipment volumes.

The company returned $4.3 billion to shareholders in FY 2025, surpassing its prior commitment of $3.8 billion. This included $3.0 billion in share repurchases and $1.3 billion in dividends, reflecting a continued focus on shareholder value.

FedEx projects a revenue growth range of flat to 2% for the first quarter of fiscal 2026, accompanied by guidance of adjusted diluted earnings per share of $3.40 to $4.00. The anticipated headwinds from the expiration of the U.S. Postal Service contract and ongoing trade policy uncertainties are expected to influence the company’s financial performance in the upcoming quarter.

Looking ahead, FedEx aims to achieve $1 billion in additional transformation-related savings through its continued DRIVE and Network 2.0 initiatives during fiscal 2026.