The Celebration of Life ceremony for FedEx founder Fred Smith occurred on August 11, 2025, at FedExForum in Downtown Memphis. This event not only honored Smith’s legacy but also coincided with the company’s recent financial updates, further illustrating the challenges and triumphs facing FedEx.
In its first-quarter earnings report, released on September 18, FedEx revealed a rise in profits, reporting an adjusted net income of $0.91 billion, or $3.83 per share. This marks an increase from $0.89 billion or $3.60 per share from the previous year. Additionally, quarterly revenue grew by $600 million, reaching a total of $22.2 billion. Despite the positive results, FedEx’s forecast for 2026 earnings per share fell below analysts’ expectations, projecting figures between $17.20 and $19, while analysts anticipated an average of $18.21 per share.
FedEx President and CEO Raj Subramaniam expressed pride in the company’s performance amid challenging economic conditions, stating, “We delivered a solid quarter in line with the Q1 outlook we shared in June, despite significant volatility and uncertainty around the global trade environment.” He also provided assurances regarding the upcoming spinoff of FedEx Freight, which is expected to be finalized in June 2026; the hiring process for the transition is reportedly about 50% completed.
The earnings report also pointed to broader challenges, particularly with the U.S. administration’s recent decision to end “de minimis” exemptions, which historically allowed for duty-free entry of low-value shipments under $800 from China and Hong Kong. This change, effective August 29, is anticipated to substantially impact FedEx’s financial results as these shipments represented a significant portion of packages entering the U.S.
Additionally, FedEx announced planned increases in parcel and Freight LTL shipping rates, set to rise by an average of 5.9% beginning January 5, 2026. The company aims for an overall revenue growth rate of 4% to 6% for FY26, alongside an affirmed capital spending forecast of $4.5 billion and savings of $1 billion through structural cost reductions and its Network 2.0 transformation strategy.
Looking ahead, FedEx will hold its next investor day in Memphis on February 11-12, where it is expected to provide more detailed insights into its strategies and projections. In the first quarter, the company also repurchased $500 million worth of shares through open market transactions, with plans to continue this program throughout FY26.
The Celebration of Life for Fred Smith stands as a poignant reminder of his significant contributions to global logistics, as the company he built navigates a rapidly evolving market landscape.
