FedEx earnings spotlight tariffs, shipping volumes

Investors are cautious as FedEx is preparing to report its fiscal Q1 2026 results. The company is facing pressure from weaker business demand, slower online shopping, and new tariffs that are squeezing profits. Analysts expect earnings to be downgraded, with the US$170 million tariff impact likely to grow as global de minimis exemptions expire. This comes after a stronger finish for the company last year. “During the earnings call, we will be watching for updates on holiday season demand, progress on cost-cutting and network integration, and FedEx’s growing partnership with Amazon on large deliveries,” said Lale Akoner, Global Market Analyst, eToro. Despite these short-term challenges, FedEx continues to pursue long-term plans. FedEx faces headwinds from tariffs and soft shipping volumes. Its stock may remain rangebound until there is clearer evidence that shipping activity is stabilising and profits are less affected by external pressures.