FedEx said operating income declined 18% for Q2 and 23% for the first half of 2025. The company cited lower demand for U.S. domestic package and LTL freight services, higher purchased transportation and wage rates, and higher business optimization costs as the main factors.

10-QQuarterly reportFiled Dec 19, 2024Period of report Nov 30, 2024Summary published (UTC) Oct 23, 2026

Key points

AI summary

FedEx said operating income declined 18% for Q2 and 23% for the first half of 2025. The company cited lower demand for U.S. domestic package and LTL freight services, higher purchased transportation and wage rates, and higher business optimization costs as the main factors.
The company said revenue decreased 1% for Q2 and for the first half of 2025, and FedEx Freight revenue decreased 11% for Q2 and 7% for the first half. It cited lower volume and fuel surcharges as factors.
The company said on December 19, 2024 that its Board of Directors had completed its assessment of FedEx Freight and decided on a full separation through the capital markets, creating a new publicly traded company. It said the transaction is expected to be completed within 18 months and to qualify as a tax-free separation for U.S. federal income tax purposes.
FedEx said it held $5.0 billion in cash and cash equivalents as of November 30, 2024 and had $3.5 billion of available liquidity under its two credit agreements. The company also said it repurchased $1.0 billion of its common stock in 2025 Q2 and $2.0 billion in the first half.

Key figures

Quarter ended November 30, 2024

Revenue: $22.0B
Operating income: $1.1B
Net income: $741M
EPS: $3.03

From the XBRL financial data filed with the SEC · not processed by AI.

Summary

AI-written

Analysis scope · Management's discussion (MD&A)We analyzed excerpts of the Management's Discussion and Analysis (MD&A) section (with omissions). Other sections of the report, such as the notes to the financial statements and risk factors, were not reviewed.

Operating Income Decline and Business Optimization Costs

FedEx said operating income declined 18% for Q2 and 23% for the first half of 2025. The company cited lower demand for U.S. domestic package and LTL freight services, higher purchased transportation and wage rates, and higher business optimization costs as the main factors.

Source · Based on the MD&A text of the filing

Revenue Changes and FedEx Freight Revenue Decline

The company said revenue decreased 1% for Q2 and for the first half of 2025, and FedEx Freight revenue decreased 11% for Q2 and 7% for the first half. It cited lower volume and fuel surcharges as factors.

Source · Based on the MD&A text of the filing

FedEx Freight Separation Decision

The company said on December 19, 2024 that its Board of Directors had completed its assessment of FedEx Freight and decided on a full separation through the capital markets, creating a new publicly traded company. It said the transaction is expected to be completed within 18 months and to qualify as a tax-free separation for U.S. federal income tax purposes.

Source · Based on the MD&A text of the filing

Cash, Liquidity and Share Repurchases

FedEx said it held $5.0 billion in cash and cash equivalents as of November 30, 2024 and had $3.5 billion of available liquidity under its two credit agreements. The company also said it repurchased $1.0 billion of its common stock in 2025 Q2 and $2.0 billion in the first half.

Source · Based on the MD&A text of the filing

AI summarized the filing and translated the summary into English; it may differ from the original. For reference only, not investment advice. AI translated the published Korean report into English. Figures are copied as filed, not recalculated.

Original filing

The filing as submitted to SEC EDGAR. You can check the figures and statements of this summary against it.

View the original filing on SEC EDGAR ↗

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