FedEx Profit Outpaces Revenue as Domestic Margin Widens
Operating income nearly doubled sequentially to $1.934 billion in the recast fourth quarter.
FedEx Corp. (FDX), the package-delivery company, reported sharply higher fourth-quarter profit as domestic volume, pricing and margins improved.
The results marked a stronger finish to calendar 2025 after FedEx recast prior periods to exclude FedEx Freight. Revenue rose 13.8% sequentially to $23.259 billion and increased 9.2% from a year earlier.
Net income from continuing operations increased to $1.387 billion from $645 million in the third quarter and $896 million a year earlier. Diluted earnings rose to $5.85 a share from $2.73 sequentially and $3.69 a year earlier.
Express U.S. Domestic drove the improvement. Revenue climbed to $15.765 billion from $13.392 billion in the third quarter, while operating income more than doubled to $1.775 billion. The segment’s operating margin widened to 11.3% from 6.6% sequentially and 8.3% a year earlier.
Domestic package gains reflected higher volume and pricing. Average daily volume rose to 16.378 million packages from 14.094 million sequentially, while composite yield increased to $14.50 from $14.28. Most of the volume increase came from home-delivery and economy ground services, as commercial ground volume edged lower.
Express International revenue rose to $6.828 billion from $6.363 billion in the third quarter, and operating income increased to $246 million from $192 million. Its 3.6% operating margin improved sequentially but remained below the year-earlier 4.0%, when operating income was $264 million.
The quarter preceded a broader reshaping of FedEx. The company changed its fiscal year end to Dec. 31 and stopped consolidating FedEx Freight after the June 1 spin-off, replacing its former Federal Express segment with separate domestic and international businesses. FedEx also agreed to sell FedEx Supply Chain to CMA CGM Group for $1.4 billion, with closing expected in the second half of calendar 2026.