What to look for when FedEx (FDX) reports Q3 2025 earnings results

Shares of FedEx Corp. (NYSE: FDX) stayed green on Friday. The stock has dropped 14% over the past three months. The package delivery company is scheduled to report its third quarter 2025 earnings results on Thursday, March 20, after market close. Here’s a look at what to expect from the earnings report:

Revenue

Analysts are projecting revenue of $21.9 billion for the third quarter of 2025, which compares to revenue of $21.7 billion reported in the same quarter a year ago. In the second quarter of 2025, revenue dipped 1% year-over-year to $22 billion.

Earnings

The consensus target for earning per share in Q3 2025 is $4.67, which implies an increase of 21% from the prior-year period. In Q2 2025, adjusted EPS rose 2% YoY to $4.05.

Points to note

FedEx has been tackling a challenging demand environment, with weakness in the industrial economy that has negatively impacted its B2B volumes, especially in the US domestic package and LTL markets. In Q2, pressure on volumes, led by weakness in the US domestic market, was partly offset by strong international growth.

The cargo giant anticipates consolidated revenue to be up slightly YoY in the third quarter. Revenues in the Federal Express segment are anticipated to see growth during the back half of fiscal year 2025, supported by ground residential and international economy volume growth, driven by Asia and European markets. This bodes well for Q3.

However, the FedEx Freight segment is expected to see a slight revenue decline in the second half of the year, due to softness in average daily shipments and modest yield improvement. This may impact Q3 results.

FedEx is expected to benefit from its DRIVE program, which continues to generate cost savings. The company achieved DRIVE savings of $540 million in Q2, and it anticipates these savings to build incrementally in Q3 and Q4 to reach $2.2 billion for the full year of 2025.

FDX expects the bottom line results at its Federal Express segment to benefit from DRIVE savings and encouraging peak demand in Q3. However, continued softness in the US industrial economy and lower fuel prices are expected to pressure operating profits in FedEx Freight.