Fedex Corp

**Challenging Demand Environment**: FedEx reported a weaker-than-expected Q1 performance, with overall revenues declining due to lower demand in the U.S. domestic package market and a shift from higher-yielding services to lower-yielding, deferred services. In particular, B2B volumes were pressured, contributing to a 1% revenue decline at Federal Express and a 2% decline at FedEx Freight.

**Fiscal Year 2025 Earnings Outlook**: The adjusted EPS outlook for FY '25 has been narrowed to $20 to $21, down from a previous range of $20 to $22. This adjustment reflects softer revenue trends and ongoing challenges in the pricing environment, leading to expectations of low single-digit revenue growth versus earlier expectations of low to mid-single digits.

**DRIVE Program Progress**: Despite the challenging quarter, FedEx achieved $390 million in DRIVE-related savings, which lays the groundwork for expected sequential increases in savings throughout the fiscal year. The total goal is $2.2 billion in savings, with confidence expressed in the ability to meet this target amid operational efficiencies and cost reductions.