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FedEx Predicts Profit Growth Under New CEO Subramaniam’s Three-Year Plan

  • Courier has modernized fleet, added capacity, Subramaniam says
  • Company sees adjusted operating margins of 10%, up from 7.3%
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FedEx Earnings Forecast Beats Estimates
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FedEx Corp. said it would boost sales and profit by targeting “high-value” customers and improving efficiency, but the new three-year plan didn’t generate enough investor enthusiasm to maintain a recent rally in the stock.

The courier expects earnings per share to increase as much as 19% annually through 2025, FedEx said Wednesday in the first strategic outlook under new Chief Executive Officer Raj Subramaniam. The plan also calls for annual sales growth of up to 6%, even as package demand begins to slow following torrid growth early in the pandemic.