FedEx Beats Global Trade Headwinds as Package Volumes Surge

FedEx saw its package volume increase during the quarter ended May 31, in both its U.S. domestic business and its international export business, as it helped customers navigate a dynamic macro environment.

These gains were only partially offset by the impact of changes in global trade policy, the company said in a Tuesday (June 23) earnings release.

Brie Carere, executive vice president and chief customer officer at FedEx, said during a Tuesday earnings call that the company’s Ground Commercial and Home Delivery strength drove a 3% year-over-year gain in U.S. domestic volume and that the company’s ability to flex its network to support changing trade patterns drove 5% year-over-year growth in international export package volume.

“With a focus on premium B2B vertical and high-value B2C, we grew volume and yield every quarter of fiscal year 2026,” Carere said.

FedEx noted in the earnings release that it finalized the spinoff of FedEx Freight into a new publicly traded company on June 1. The company said in a Thursday earnings presentation that the move positions both companies for success as “focused industry leaders.”

The company announced in December 2024 that its board of directors decided to pursue a full separation of FedEx Freight through the capital markets to allow for more customized operational execution. FedEx Freight announced June 1 that it completed its spin-off and would begin trading on the New York Stock Exchange that day.

During Tuesday’s earnings call, FedEx President and CEO Raj Subramaniam said: “We completed the spinoff of FedEx Freight on June 1, positioning both companies for success as separate, focused industry leaders.”

FedEx provided an update on tariff refunds during the call, with Carere saying the company expects to start passing refunds through to customers in August.

It was reported in April that FedEx was among the companies seeking tariff refunds by filing claims with the U.S. Customs and Border Patrol (CBP). The company said at the time that if CBP issues refunds to FedEx, the company will turn those refunds over to shippers and consumers.

The refunds process began after a Supreme Court decision declared that the tariffs imposed under the International Emergency Economic Powers Act (IEEPA) were illegal.

During Tuesday’s earnings call, Carere said: “We have continued to help our customers navigate a very dynamic and complex environment. The implementation of global trade policy changes, geopolitical unrest in the Middle East, and the IEEPA refund process. In April, we began to file claims with CBP on behalf of our customers, and beginning in August, we will be passing those refunds through to our customers.”