FedEx's operating income for the second quarter fell by 18% due to a decline in Freight revenue.

FedEx experienced an 18% drop in operating income to $1.05 billion for Q2 ending November 30, 2024, attributed to disappointing FedEx Freight revenues and ongoing challenges in U.S. industrial production affecting LTL demand. Overall revenue slightly decreased to $22 billion, with an operating margin decline from 5.8% to 4.8%. Despite these challenges, FedEx's Federal Express segment showed profit growth. The company plans to separate FedEx Freight into a publicly traded entity within 18 months. Revised forecasts now predict flat revenue and lower earnings per share for fiscal 2025, while maintaining cost reduction efforts.