FedEx has revised its financial outlook downward, citing continued weakness and uncertainty in the US industrial economy, resulting in a 5% drop in stock prices after hours. Despite a slight improvement in freight and business-to-business demand, the company announced this has not been enough to bolster future forecasts. Both the CEO and CFO expressed skepticism about significant macroeconomic improvement in the near term. FedEx is implementing cost-cutting measures while customers remain cautious about tariffs, with price increases anticipated by many in the shipping industry.
FedEx's outlook has been revised down due to continued weakness and uncertainty in the US industrial economy, leading to a 5% drop in shares.
CEO Raj Subramaniam stated that while demand improved slightly, it was insufficient for the company's future projections, suggesting economic conditions will remain unchanged for the first half of 2026.
CFO John Dietrich added that significant improvement in the macro environment seems unlikely, reflecting ongoing challenges in the industrial sector.
Customers are not rushing to ship goods ahead of new tariffs, with minimal attempts and caution evident in inventory management.
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