FedEx reported a steep quarterly profit drop and lowered its full-year revenue forecast on Thursday after its customers continued to trade down from speedy, pricey delivery to cheaper, slower options.

Analysts sees a potential spinoff of FedEx’s freight business as a potential boost, but the stock is dropping sharply

FedEx’s results were dragged down by weaker-than-expected demand, particularly in the U.S. domestic package market.

By Shivansh Tiwary (Reuters) -FedEx Corp shares slumped on Friday after the parcel giant cut its annual revenue forecast and reported a sharp fall in profits, as cost-conscious industrial customers choose cheaper options over higher-priced speedy deliveries.

The package-delivery giant said reduced demand for priority services and higher operating costs weighed on its results.

Key Takeaways FedEx lowered its revenue and earnings outlook for fiscal 2025.The company's fiscal first-quarter results missed analysts' expectations on the top and bottom lines amid weaker demand for its priority shipping services.