FedEx plans to cut expenses by $1 billion in fiscal year 2026, while its net income fell by 5% in fiscal year 2025.

FedEx is set to implement permanent cost reductions totaling $1 billion in fiscal 2026 through its DRIVE and Network 2.0 initiatives, following a net income of $4.09 billion in fiscal 2025, down from $4.33 billion in the previous year. Despite a slight revenue increase to $87.9 billion, the company reduced capital spending by 22% to $4.1 billion. Executives emphasized their commitment to managing costs and enhancing network efficiency, while also addressing fleet modernization through the retirement of certain aircraft.