FedEx Defies Global Trade Woes with Surprising Earnings Boost

FedEx's shares soared by 5.4% in premarket trading on Friday, as the company's first-quarter results exceeded Wall Street expectations. The parcel giant's performance was propelled by robust domestic deliveries and strategic cost-cutting efforts, which compensated for a tariff-related dip in international volumes.

FedEx, often seen as a barometer for global trade alongside rival UPS, implemented a series of efficiency measures, including grounding planes and merging units, to slash billions in costs. While UPS shares also saw gains, rising nearly 2%, FedEx's revenue drivers are expected to include increased Amazon volumes and higher yields.

Despite analysts' cautious outlook due to global trade challenges, FedEx reported a 2.2% boost in adjusted profit. The surprise performance came as FedEx set a profit forecast for fiscal 2026, despite ending a costly partnership with the U.S. Postal Service, leading to a reassessment of trade strategy.

(With inputs from agencies.)