FedEx faces uncertain quarter due to tariffs

FedEx expects mixed results in its current quarter as tariffs hit its international shipping business.

During the fourth quarter, trade between the US and China fell sharply following the April tariff announcements, resulting in weaker Pacific shipping. Despite this, FedEx posted strong domestic parcel growth, with volume rising 6%. The total average daily volume grew 5% to 16.8 million packages.

Profit rose to $1.65 billion, while revenue climbed 1% to $22.22 billion. 

However, earnings guidance for the next quarter—$2.90 to $3.50 per share—fell below analyst expectations. Shares dropped 5% in after-hours trading.

FedEx plans to cut European jobs, saving $150 million annually, amid global trade uncertainty.