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FedEx Reports Strong Q4 Results on Premium Service Push, Network Restructuring Gains

Federal Express reported fourth-quarter revenue of $25 billion, up 13 percent, driven by strong growth in high-margin parcel and freight services. The company focused on automotive, healthcare, aerospace and data center sectors. FedEx achieved $1 billion in cost savings as its multiyear network restructuring matured. Full-year revenue climbed 9 percent to $94.7 billion with adjusted operating margin reaching 17.7 percent, the highest in four years. Domestic and international package volumes surged 13 percent in the quarter, while international export freight averaged 12 percent more daily pounds. FedEx faced headwinds from tariff volatility, grounded MD-11 freighters and higher labor costs following a pilot contract raising pay 40 percent over four years. Europe delivered its twelfth consecutive quarter of revenue gains. The company will begin passing duty refunds to customers after a Supreme Court ruling on tariff constitutionality.