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

FedEx came up short on top and bottom lines, and guidance revisions suggest there is more bad news to come in fiscal 2025.

FedEx said a weaker industrial economy produced a “challenging” quarter that caused it to trim its outlook for later this year, a sign of possible cooling in the wider economy.

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

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.

Andrew Graham, managing partner at Jackson Square Capital, shares his take on FedEx's latest financial results and its prospects. The Memphis-based company cut the top end of its full-year profit outlook and reported quarterly earnings below expectations on softer demand for package deliveries.

FedEx stock tumbled after the company reported disappointing earnings and turned in weak quarterly results Thursday and suffered a bevy of price target cuts and downgrades from Wall Street as a result.