FedEx Stock: Price-Target Cuts Roll In After Big Earnings Miss
FedEx stock is plunging Friday after the logistics giant came up short of earnings expectations and revised its full-year outlook. Here's what you need to know.


FedEx (FDX) stock is spiraling Friday after the logistics giant missed top- and bottom-line expectations for its fiscal first quarter and revised its full-year outlook.
In the quarter ended August 31, FedEx's revenue decreased 0.5% year-over-year to $21.6 billion and its earnings per share (EPS) plunged 20.9% from the year-ago period to $3.60.
In a statement, FedEx CEO Raj Subramaniam called the quarter "challenging." However, he added that the company remained "focused on transforming our network, improving our efficiency, lowering our cost-to-serve, and enhancing our ability to adapt with speed to evolving market dynamics."
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.

Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Subramaniam says he is "confident in the value-creation opportunities ahead as we focus on reducing our structural cost, growing revenue profitably, and leveraging the insights from our vast collection of data as we continue to build the world's most flexible, efficient, and intelligent network."
FedEx's results fell short of analysts' expectations. Wall Street was anticipating revenue of $21.9 billion and earnings of $4.76 per share, according to CNBC.
As a result of this disappointing start to the year, FedEx revised its full-year outlook. The company now anticipates low single-digit revenue growth and earnings per share in the range of $20 to $21. It had previously forecasted low to mid-single-digit revenue growth and EPS in the range of $20 to $22.
"Our revised outlook reflects our continued confidence in the execution of our DRIVE [cost-cutting] initiatives and the effects of our recent pricing actions, which we expect to help offset weaker-than-expected demand trends," said FedEx Chief Financial Officer John Dietrich in a statement.
Is FedEx stock a buy, sell or hold?
It's been a volatile year for FedEx on the price charts and Friday's decline nearly erases the industrial stock's year-to-date gain. Still, Wall Street has remained bullish toward FDX.
According to S&P Global Market Intelligence, the average analyst target price for FDX stock is $310.77, representing implied upside of more than 20% to current levels. Additionally, the consensus recommendation is Buy. However, analysts are downwardly revise their price targets and ratings and may cut their ratings following the disappointing quarter.
Financial services firm Stifel is one of those that lowered its price rating on FedEx after earnings, to $321 from $327, while maintaining its Buy rating on the large-cap stock.
"Secular macroeconomic tailwinds are waning for FedEx, or are at least on pause for now, especially as trends like e-commerce penetration of total retail reset lower vs where they were at the height of the pandemic," says Stifel analyst Bruce Chan. "We believe there is still long-term opportunity for FedEx once secular trends resume their glide path post-COVID, and in a more mature and more disciplined global oligopoly, FedEx should be well-positioned to benefit."
Related Content
- UPS Stock Heads Toward Worst Day Ever After Earnings
- Kiplinger's Earnings Calendar and Analysis for This Week
- Stellantis Stock Shrugs Off UAW Strike Authorization Vote: What to Know
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Joey Solitro is a freelance financial journalist at Kiplinger with more than a decade of experience. A longtime equity analyst, Joey has covered a range of industries for media outlets including The Motley Fool, Seeking Alpha, Market Realist, and TipRanks. Joey holds a bachelor's degree in business administration.
-
Markets Are Quiet Ahead of Fed Day: Stock Market Today
Investors, traders and speculators appear to be on hold amid an unusually fraught Fed meeting.
-
Quiz: Test Your Knowledge of the OBBB, Wealth Transfer and Early Retirement
Quiz The financial professionals who contribute to Kiplinger's Adviser Intel recently wrote about the OBBB's impact on retirement, how to ensure your wealth passes to your family and early retirement questions.
-
Markets Are Quiet Ahead of Fed Day: Stock Market Today
Investors, traders and speculators appear to be on hold amid an unusually fraught Fed meeting.
-
5 Multibagger Stocks With Amazing Returns in 2025
multibagger stocks As the term suggests, multibagger stocks multiply your money – gains of 1,200%, for example. Here's where to look for that kind of performance this year.
-
Investing Freebies: Perks You Get for Owning These Stocks
While the biggest investing returns come over the long term, these companies offer instant gratification for investors with several freebies and perks.
-
How an Expired Passport Thwarted Blackmail (and What Other Important Documents You Should Keep)
An optometrist produced his expired passport to foil a blackmail attempt by the daughter of a former employee. After proving he was out of the country on the date of a forged diary entry, he took it a step further.
-
Optimize, Grow, Retain: The Power of Annual Client Reviews
Financial advisers can use annual reviews to help enhance client outcomes, strengthen relationships and build their practice.
-
I'm a Real Estate Investing Pro: This Is What Investors Should Know About Truck Stop Investments
Truck stops might seem like good investments, but they can actually be a risky gamble due to unstable fuel prices, unreliable operators and coming changes in transportation. Instead, consider safer options like industrial or residential properties.
-
How Digital Platforms Are Changing the Way You Invest in Gold
Investing in gold is easier than ever thanks to digital platforms. Learn how online tools are lowering costs, increasing transparency and making gold accessible to all investors.
-
Stocks Rise to Start Fed Week: Stock Market Today
The Nasdaq Composite and S&P 500 hit new record closing highs as Wall Street awaits the Fed's next rate cut.