Home / FedEx News: Earnings, Rate Changes & Founder’s Passing

FedEx News: Earnings, Rate Changes & Founder’s Passing

By: Jasmin Espinas
June 25, 2025

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FedEx is among the most influential players in transportation and logistics, with a global presence in the e-commerce supply chain. In recent FedEx news, the company has cautioned for the rest of 2025 due to tariff challenges impacting international operations and pricing stability.

Alongside this earnings outlook, FedEx has announced its rate adjustments.

The company also confirmed the death of its founder, Fred Smith, who was pivotal in building FedEx into a logistics giant.

Latest FedEx News: FedEx Signals Caution for 2025 as Profit Forecast Falls Short of Expectations

FedEx signaled caution for the rest of 2025 after its profit forecast missed market expectations.

This forecast caused a drop of over 5% shares in after-hours trading on Wednesday, June 25.

The company cited volatile global demand as a primary concern, highlighting the effects of U.S. trade policy shifts.

Ongoing tariffs, particularly those imposed by the Trump administration on Chinese goods, have added pressure on the company’s international operations.

Because of this, the firm declined to provide full-year earnings and revenue forecasts, pointing to continued uncertainty around U.S.-China trade.

Executives highlighted that the most disruptive change came from the end of duty-free status on low-value shipments from China, a policy reversal that significantly impacted FedEx’s air volume.

These shipments, from platforms like Temu and Shein, previously helped offset weak business-to-business demand.

FedEx now expects fiscal Q1 2026 adjusted earnings between $3.40 and $4 per share, below analyst estimates of $4.06.

This outlook overshadowed a solid Q4 performance, where cost-cutting and stronger export volumes raised operating margins.

Adjusted earnings rose to $6.07 per share on $22.2 billion in revenue, surpassing revenue projections but falling short of forward guidance.

In another FedEx news, the company also announced plans to spin off its trucking division by June 2026, a strategic move that reflects its shifting focus amid continued pressure from slower, cost-sensitive shipping demand.

FedEx News: FedEx Announced 2025 Shipping Rate Increases and Surcharge Updates

In this round of FedEx news, FedEx has announced a series of shipping rate and surcharge changes.

These updates affect multiple services and apply to domestic and international shipments.

Starting June 9, 2025, FedEx will adjust fuel surcharge rates across several categories, including domestic package, express freight, FedEx Ground, FedEx Home Delivery, and international services.

These changes reflect fluctuations in transportation costs and apply to regularly updated surcharge tables.

Additional pricing updates will take effect on July 14, 2025. Packages and freight that exceed FedEx’s size and weight limits will now have specific Unauthorized Package or Unauthorized Freight Charges.

The company is also lowering the weight threshold for its Additional Handling Surcharge on international shipments, from 70 pounds to 55 pounds.

At the same time, Oversize Charges and Ground Unauthorized Package Charges will increase, and One Rate pricing for FedEx Express Saver and 2Day services will be revised.

A third set of changes will begin August 18, 2025, when FedEx introduces a new pricing model for parcel pickups in the U.S. and Canada.

FedEx News: Founder Fred Smith Dies at 80, Leaves Behind a Legacy of Global Logistics Innovation

Frederick W. Smith, founder and former CEO of FedEx, died of natural causes on June 21, 2025, at the age of 80.

Frederick W. Smith
August 11, 1944 – June 21, 2025
Pioneer of an industry, founder of FedEx, mentor to many, a source of inspiration to all. Bravo Zulu.

Photographed by @annieleibovitz pic.twitter.com/axN6879PWs

— FedEx (@FedEx) June 22, 2025

Smith launched Federal Express in 1973 with 14 aircraft and a business model that challenged the limitations of traditional shipping at the time.

Over the next five decades, he built it into the world’s largest express transportation company.

Under Smith’s leadership, FedEx scaled globally, moving more than 17 million shipments daily and connecting over 220 countries and territories.

The company now supports over half a million employees and facilitates nearly $2 trillion in trade annually.

Smith is also being recognized not only for the company’s growth but also for how he structured its culture.

He emphasized consistency in service, internal accountability, and operational discipline.

Additionally, his long-term impact is visible in the logistics standards and delivery models used globally today.

Conclusion

FedEx faces a period of adjustment as global conditions continue to shift. Its next steps will depend heavily on trade policy developments, operational execution, and market response to pricing changes.

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