FedEx FedEx (FDX) reported its fiscal fourth-quarter results after the bell on Tuesday, and while the numbers looked good on the surface, investors focused on the softer outlook ahead. Shares dropped about 5% in after-hours trading.

The delivery giant posted Q4 revenue of $25 billion, beating the $24.04 billion analysts were expecting. Adjusted earnings came in at $6.31 per share, also ahead of the $5.96 consensus. The Federal Express segment saw improved operating results thanks to higher package yields, cost savings from transformation initiatives, and increased volume in both domestic and international express packages.

FedEx also completed the spin-off of its FedEx Freight unit on June 1, a major strategic move. FedEx Freight will hold its own earnings call on Thursday to discuss its fourth-quarter results.

“Our profitable growth strategy is working. We are building momentum across our global industrial network, driving structural improvements and winning in high-value growth markets,” said Raj Subramaniam, president and CEO of FedEx. “With the successful spin-off of FedEx Freight, we are entering this next chapter positioned to grow while further optimizing our network, lowering our cost to serve, creating meaningful long-term value, and driving robust free cash flow.”

The company ended the quarter with $13.3 billion in cash and cash equivalents and said it plans to repurchase up to $1 billion worth of shares opportunistically through the rest of calendar 2026.

Looking ahead, FedEx guided for fiscal 2027 revenue of $97.57 billion, above the $96.01 billion estimate. But the adjusted earnings guidance of $16.90 to $18.10 per share came in well below the $21.61 analysts were expecting — a gap that likely explains the after-hours selloff.

FedEx executives will discuss the quarter in more detail on an earnings call at 5:30 p.m. ET.

FDX Price Action: FedEx shares were down 5.12% in after-hours trading at $300.99 at the time of publication.