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FedEx stock rises on better-than-expected earnings
A Fedex truck is seen during heavy traffic on Sept. 16, 2025 in New York City.
Zamek | View Press | Corbis News | Getty Images
FedEx beat on the top and bottom lines in its fiscal first-quarter earnings report on Thursday.
The stock rose more than 5% in after-hours trading on Thursday.
“Despite significant volatility and uncertainty around the global trade environment, our results demonstrate the resilience we have built into our network,” CEO Raj Subramaniam said in a call with analysts Thursday. “They also reflect the dedication of our world class team, who have adapted quickly to serve customers with excellence through an evolving demand environment.”
Here’s how the company performed in the first fiscal quarter, compared with what Wall Street was expecting based on a survey of analysts by LSEG:
- Earnings per share: $3.83 adjusted vs. $3.59 expected
- Revenue: $22.24 billion vs. $21.66 billion expected
The package delivery company posted net income of $820 million, or $3.46 per share, for the first fiscal quarter ended Aug. 31, compared to $790 million, or $3.21 per share, in the year-ago period. Adjusted for FedEx Freight spin-off costs and other changes, the company posted net income of $910 million or $3.83 per share.
Average daily volumes in the U.S. saw an increase of 6% overall, the company reported. FedEx said segment operating results saw improvements this quarter due to higher domestic package volumes, but the FedEx Freight segment operating results fell due to lower revenue and higher wages.
The company said it sees revenue growth in 2026 in the range of 4% to 6%, compared with a Wall Street estimate of 1.2%. FedEx expects full-year earnings per share for fiscal year 2026 at $17.20 to $19, which is a midpoint of $18.10, compared with an estimate of $18.21.
Subramaniam said on Thursday that the outlook reflects what remains to be a “dynamic global operating environment.” The company said it incurred $150 million in headwinds from the global trade environment.
FedEx is continuing the process of spinning off FedEx Freight into a new publicly traded company, with an expected completion date of June 2026, the company said.
Subramaniam said FedEx moves 17 million packages through its network daily. He added that the company was flexible in the first quarter, adapting to the changing macroeconomic environment.
Last month, the “de minimis” exception, which permitted shipments under $800 to enter the U.S. duty-free, came to an end globally after President Donald Trump issued an executive order. As a result, FedEx announced it was slightly raising shipping fees.
The company said the majority of its headwinds in the first quarter were due to the loss of the de minimis exception.
“Given a significant portion of our de minimis volume exposure previously came from China, we were able to use learnings from experiences in May to help shippers elsewhere navigate the more recent exemption elimination,” Subramaniam said on the call.
 "25 Lakh Additional LPG Connections To Be Given Under Ujjwala Scheme; Govt Sanctions Rs 676 Crore")
Michelob Ultra has become the top-selling beer in the US two year’s after its parent company’s Bud Light brand lost the title following a consumer backlash.
Anheuser-Busch, citing data from Circana, said on Monday that Michelob Ultra overtook Modelo Especial in US retail sales by volume in the year to 14 September.
Two years ago, Anheuser-Busch’s Bud Light brand’s sales slumped after a boycott over its work with transgender influencer Dylan Mulvaney.
Meanwhile, Constellation, which owns Modelo and Corona, has previously blamed its falling beer sales on tougher US immigration policies causing a drop in Hispanic consumers in the US.
About half of the Constellation’s sales come from Hispanic people in the US.
Earlier this month, Constellation cut its full-year guidance, pointing to a “challenging macroeconomic environment”.
Several consumer companies have in recent months highlighted a connection between US President Donald Trump administration’s stricter immigration policies and weak sales.
Coca-Cola and Colgate-Palmolive have also noted a slump in North American sales from Hispanic consumers.
Overall, the US beer industry has had a lacklustre year as US drinking habits are changing.
American have dialled down their beer consumption over the past four decades, according to the National Institute on Alcohol Abuse and Alcoholism.
Anheuser-Busch’s recent success comes after a difficult 2023.
As well as being facing boycotts for its social media work with Ms Mulvaney, Anheuser-Busch response to the criticism, which included putting two executives blamed for the relationship on leave, was also criticised.
Bud Light sales sank and it lost its spot as the top-selling beer in the US after more than two decades.
Anheuser-Busch on Monday said the launch of Michelob Ultra Zero, a non-alcoholic beer, has helped propel the brand’s popularity.
The brewer has also invested in marketing for Michelob Ultra, including at the FIFA Club World Cup and other major sporting events.
Thomas Fuller | Lightrocket | Getty Images
Disney on Tuesday unveiled price increases for its streaming subscription packages beginning Oct. 21.
The stand-alone Disney+ ad-supported plan will see a $2 increase to $11.99 per month, while the premium no-ads plan will jump $3 to $18.99 per month or get a $30 annual hike to $189.99 per year.
The Disney+ and Hulu ad-supported package will increase by $2 per month, and both of the bundles with Disney+, Hulu and ESPN will see a $3 monthly increase. The packages with Disney+, Hulu and HBO Max will also both increase by $3 per month.
The NFL+ plans will remain at the same pricing.
The company previously alluded to the price increases on its third-quarter earnings call, adding that it expects a modest increase in Disney+ subscribers in its fourth fiscal quarter. Disney last raised prices for its packages in October 2024, with most plans increasing by $1 to $2.
The price hikes come as the entertainment company has faced intense scrutiny for its handling of “Jimmy Kimmel Live!” after Disney subsidiary ABC pulled the show off air last week over the host’s controversial comments about the alleged killer of conservative activist Charlie Kirk.
The company announced nearly a week later that the show would return to air on Tuesday, after viewers and late-show hosts criticized Disney for its actions.
In the interim, some fans took to social media to announce they were canceling their Disney+ subscriptions in solidarity with Kimmel.
Disney did not immediately respond to CNBC’s request for comment on the price changes.
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Accenture plans a new campus in Visakhapatnam, Andhra Pradesh, aiming to add 12,000 jobs, following TCS and Cognizant, amid changing US visa and outsourcing policies.
Accenture (File Photo)
Tech consultancy Accenture has proposed setting up a new campus in the southern Indian state of Andhra Pradesh, aiming to eventually add about 12,000 jobs to its workforce in India, three sources familiar with the matter told Reuters.
The move follows similar deals by IT firms Tata Consultancy Services and Cognizant, which are leveraging a new state policy offering leased land at 0.99 rupees ($0.0112) per acre to large firms willing to generate employment.
India is already Accenture’s largest employee base globally, with more than 300,000 of its 790,000 employees based in the country.
As part of the proposal being reviewed by the state government, Accenture has requested land of about 10 acres in the port city of Visakhapatnam on similar terms, the sources said, requesting anonymity as the matter is private.
Accenture did not respond to Reuters’ request for comment.
The Andhra Pradesh government is eager to bring in Accenture, a state official said, adding that while approvals may take time, the proposal is expected to be cleared.
“It is not an unreasonable ask by Accenture, and the proposal will go through,” the official said on condition of anonymity.
It is not immediately clear how much Accenture intends to invest in setting up the campus.
TCS and Cognizant secured land leases under the policy to build campuses that could generate around 20,000 jobs in Visakhapatnam. Cognizant will invest $183 million, while TCS has earmarked slightly over $154 million for its facility.
Technology firms have been increasingly expanding to smaller Indian cities to tap lower land, rent and wage costs. Post-pandemic, many find it easier to hire locally in Tier-2 cities, reversing the earlier trend of workers migrating to major tech hubs.
This move comes amid U.S. President Donald Trump’s policy change requiring a $100,000 fee for new H-1B visas, widely used by tech firms to hire skilled foreign talent. The move is expected to hurt the IT sector, by far the largest beneficiary of H-1B visas last year.
The sector also faces uncertainty as customers could delay or re-negotiate contracts as the U.S. debates a proposed 25% tax on American firms using outsourcing services.
(This story has not been edited by News18 staff and is published from a syndicated news agency feed – Reuters)
Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst…Read More
Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst… Read More
September 23, 2025, 18:23 IST
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