FedEx $FDX reported Q2 adjusted EPS of $4.05 (vs. $4.02 expected) and revenue of $22.0B (vs. $22.15B expected). Operating income and margin exceeded estimates at $1.38B and 6.3%, respectively, but FedEx Freight underperformed with lower-than-expected operating income ($326M vs. $440.5M) and margin (13.7% vs. 18.4%). The company reaffirmed $2.2B in cost reductions under its DRIVE program, announced $1.5B in FY2025 share buybacks, and ended the quarter with $5B in cash. It lowered FY25 guidance, projecting adjusted EPS of $19.00-$20.00 (down from $20.00-$21.00) and flat YoY revenue. Additionally, FedEx plans to spin off its Freight division into a separate public company within 18 months.
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