FedEx shares fall as dismal forecast fans concerns over Trump tariffs
FedEx shares plunged as much as 5% Wednesday after the company revealed a disappointing profit forecast as President Trump's tariffs weigh on global transit.
The package delivery giant said it expects earnings per share of $3.40 to $4 in the current quarter, just slightly lower than forecast expectations of $4.05.
But the underwhelming forecast sent investors fleeing, since the company often acts as a bellwether for several other industries.
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FedEx shares fell Wednesday after the company reported a lower-than-expected profit forecast for the current quarter.
Christopher Sadowski
'FedEx is like the economy's Fitbit. Express shows business demand, Ground tracks e-commerce, and Freight reflects industrial strength,' said Michael Ashley Schulman, partner at Running Point Capital Advisors.
'Right now, all three are looking sluggish.'
The stock pared back gains from earlier losses, when it plunged about 6% Wednesday morning.
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FedEx executives said they expect tariff policies to continue weighing on US-China air trade. That's a big deal for the company, which is more exposed to China than rival UPS.
Trump initially levied a massive 145% rate on China. In a deal with the nation, he has since lowered it to 30% – but that's still far higher than previous rates.
FedEx is also suffering from Trump's end to the 'de minimis' exemption, which previously allowed shipments worth less than $800 to enter the country duty-free, FedEx Chief Customer Officer Brie Carere said during a post-earnings call.
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The shipping carrier often acts as a bellwether for several other industries.
Christopher Sadowski
Trump argued that Chinese fast-fashion sites like Temu and Shein abused the tax loophole, and that others might have used it to sneak in fentanyl and illicit materials, since 'de minimis' goods were able to skirt around customs checks.
FedEx did not provide a full-year earnings or profit forecast on Wednesday, which is 'quite telling,' according to Russ Mould, investment director at AJ Bell.
'This may result in some consternation in the markets beyond just the fortunes of FedEx itself,' Mould said.
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The company did, however, announce that it plans to carry out $1 billion in cost-cutting reductions in fiscal year 2026.
FedEx's 'cost cutting drive is continuing, but it's clear that it'll face more challenges ahead amid ongoing trade unpredictably,' said Susannah Streeter, head of money and markets at Hargreaves Lansdown.
Fear over the impact from Trump's tariffs – as CEO Raj Subramaniam warned that global demand 'remains volatile' – overshadowed FedEx's better-than-expected quarterly earnings.
In the quarter ended May 31, the company reported adjusted earnings per share of $6.07, far above expectations of $5.84.
FedEx posted revenue of $22.22 billion, above projections of $21.79 billion.
Its US daily package volume was up 6% from the year before, and its US ground home delivery volume was up 10%.
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Wall Street Journal
17 minutes ago
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Yahoo
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CNET
26 minutes ago
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Tariff Uncertainty Got You Down? I'm Watching 11 Key Products for Price Changes
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Apple's flagship device is still the top-selling smartphone globally, as of Q1 of this year, although new research from the firm Counterpoint suggests that tariff uncertainty will cause the brand's growth to stall a bit throughout the rest of 2025. Duracell AA batteries A lot of the tech products in your home might boast a rechargeable energy source but individual batteries are still an everyday essential and I can tell you from experience that as soon as you forget about them, you'll be needing to restock. The Duracell AAs we're tracking are some of the bestselling batteries on Amazon. Samsung DU7200 TV Alongside smartphones, televisions are some of the most popular tech products out there, even if they're an infrequent purchase. This particular product is a popular entry-level 4K TV and was CNET's pick for best overall budget TV for 2025. Unlike a lot of tech products that have key supply lines in China, Samsung is a South Korean company so it might have some measure of tariff resistance. This model was most recently about $29 more expensive than usual on Amazon, but we'll have to wait and see if this is a temporary change or a more permanent shift in pricing. Xbox Series X Video game software and hardware are a market segment expected to be hit hard by the Trump tariffs. Microsoft's Xbox is the first console brand to see price hikes -- the company cited "market conditions" along with the rising cost of development. Most notably, this included an increase in the price of the flagship Xbox Series X, up from $500 to $600. Numerous Xbox accessories also were affected and the company also said that "certain" games will eventually see a price hike from $70 to $80. Initially, we were tracking the price of the much more popular Nintendo Switch as a representative of the gaming market. Nintendo has not yet hiked the price of its handheld-console hybrid and stressed that the $450 price tag of the upcoming Switch 2 has not yet been inflated because of tariffs. Sony, meanwhile, has so far only increased prices on its PlayStation hardware in markets outside the US. AirPods Pro 2 The latest iteration of Apple's wildly popular true-wireless earbuds are here to represent the headphone market. Much to the chagrin of the audiophiles out there, a quick look at sales charts on Amazon shows you just how much the brand dominates all headphone sales. For most of the year, they've hovered around $199, which is a notable savings on its list price of $249. HP 962 CMY printer ink This HP printer ink includes cyan, magenta and yellow all in one product and recently saw its price jump from around $72 -- where it stayed for most of 2025 -- to $80, which is around its highest price over the last five years. We will be keeping tabs to see if this is a long-term change or a brief uptick. This product replaced Overture PLA Filament for 3D printers in this piece, but we're still tracking that item. Anker 10,000-mAh, 30-watt power bank Anker's accessories are perennially popular in the tech space and the company has already announced that some of its products will get more expensive as a direct result of tariffs. This specific product has also been featured in some of CNET's lists of the best portable chargers. Bose TV speaker Soundbars have become important purchases, given the often iffy quality of the speakers built into TVs. While not the biggest or the best offering in the space, the Bose TV Speaker is one of the more affordable soundbar options out there, especially hailing from a brand as popular as Bose. Oral-B Pro 1000 electric toothbrush They might be a lot more expensive than their traditional counterparts but electric toothbrushes remain a popular choice for consumers because of how well they get the job done. I know my dentist won't let up on how much I need one. This particular Oral-B offering was CNET's overall choice for the best electric toothbrush for 2025. Lenovo IdeaPad Flex 5i Chromebook Lenovo is notable among the big laptop manufacturers for being a Chinese company making its products especially susceptible to Trump's tariffs. Starbucks Ground Coffee (28-ounce bag) Coffee is included in this tracker because of its ubiquity -- I'm certainly drinking too much of it these days -- and because it's uniquely susceptible to Trump's tariff agenda. Famously, coffee beans can only be grown within a certain distance from Earth's equator, a tropical span largely outside the US and known as the "Coffee Belt." Hawaii is the only part of the US that can produce coffee beans, with data from USAFacts showing that 11.5 million pounds were harvested there in the 2022-23 season -- little more than a drop in the mug, as the US consumed 282 times that amount of coffee during that period. Making matters worse, Hawaiian coffee production has declined in the past few years. All that to say: Americans get almost all of their coffee from overseas, making it one of the most likely products to see price hikes from tariffs. Other products As mentioned before, we occasionally swap out products with different ones that undergo notable price shifts. Here are some things no longer featured above, but that we're still keeping an eye on: Nintendo Switch: The baseline handheld-console hybrid has held steady around $299 most places -- including Amazon impending release of the Switch 2 remains to be seen. This product was replaced above with the Xbox Series X. impending release of the Switch 2 remains to be seen. This product was replaced above with the Xbox Series X. Overture PLA 3D printer filament: This is a popular choice on Amazon Here are some products we also wanted to single out that haven't been featured with a graph yet: Razer Blade 18 (2025), 5070 Ti edition: The latest revision of Razer's largest gaming laptop saw a $300 price bump recently, with the base model featured an RTX 5070 Ti graphics card now priced at $3,500 ahead of launch, compared to the $3,200 price announced in February. While Razer has stayed mum about the reasoning, it did previously suspend direct sales to the US as Trump's tariff plans were ramping up in April. Asus ROG Ally X: The premium version of Asus's Steam Deck competitor handheld gaming PC recently saw a price hike from $799 to $899, coinciding with the announcement of the company's upcoming Xbox-branded Ally handhelds.
