FedEx Corporation's first quarter results for fiscal year 2025 revealed a challenging demand environment that was weaker than expected, particularly in the U.S. domestic package market. The company's revenue for the quarter was reported at $21.58 billion, a decrease of 0.47% year-over-year, attributed largely to a contraction in B2B volumes due to economic headwinds.
Despite these challenges, FedEx is committed to executing its DRIVE structural cost reduction program, which generated approximately $390 million in savings during the quarter and is expected to ramp up throughout the fiscal year. Management remains optimistic about the company's trajectory, narrowing its FY 2025 adjusted EPS outlook to a range of $20 to $21. Key strategic initiatives, including pricing adjustments and enhancements to operational efficiency, are set to support profitability going forward.