FedEx shares jump 5% on profit beat: what’s behind the strong earnings?

FDX stock, FedEx share price, US tariffs, Trump tariffs [https://invezz.com/wp-content/uploads/2025/09/20250919_105352_S7F4C.png] Shares of FedEx rose by more than 5% in premarket trading on Friday after the parcel delivery company reported stronger-than-expected profit and revenue for its fiscal first quarter. The results came despite ongoing tariff-related uncertainty and the end of the “de minimis” exemption on low-value shipments, which many analysts had feared would weigh heavily on earnings. The performance underscored both the resilience of US consumer demand and FedEx’s ability to adapt its business model through cost-cutting measures and strategic pivots in its shipping network. COST CUTS AND EFFICIENCY DRIVE MARGINS HIGHER FedEx has embarked on a sweeping $1 billion cost-reduction program aimed at improving efficiency by the end of its fiscal year in May 2026. Measures include grounding aircraft, shuttering certain facilities, and merging business units. These efforts have begun to pay off, with operating margins climbing to 6% in the quarter from 5.2% a year earlier. Adjusted profit per share rose to $3.83 from $3.60 in the prior year, defying Wall Street forecasts of a decline. Revenue per package…