FedEx surprises with strong figures – What’s behind it?

FedEx was able to positively surprise in the third quarter of the calendar year 2025 with a revenue growth of 3.1% compared to the previous year, leading to a total revenue of 22.24 billion USD. With an adjusted profit of 3.83 USD per share, which was 5.8% above analysts' forecasts, the company created happy faces on Wall Street. The global logistics company, known for having one of the largest fleets in the air freight sector, achieved a largely stable operating margin of 5.3%. Although this figure appears moderate compared to industry standards in the industrial sector, it demonstrates a consistent cost structure. However, a five-year outlook reveals that FedEx's revenue growth of only 4.4% per year fell short of expectations. The challenges in the air freight and logistics industry are not new, with many competitors struggling with declining revenues. Nevertheless, FedEx has managed to set itself apart slightly and stabilize its business figures. Over the last five years, FedEx has increased its earnings per share by 10.3% per year, achieved more by buying back shares than by improved operational efficiency. This strategy has not left shareholders unimpressed; after the quarterly results were announced, the stock rose by 5.3% to 238.95 USD. Whether the stock remains a good long-term investment depends on several factors, including valuation and future business prospects.