What happened: International courier service FedEx (FDX) stock sank 5% in post-market trading on Tuesday.
What's behind the move: FedEx fiscal fourth quarter adjusted earnings came in at $6.31 per share, versus expectations of $5.97. Revenue increased 13% to $25 billion.
However, the company's operating margin shrank to 8.4% from 9.1% last year, sending FedEx shares lower in after-hours trading.
The courier giant cited the financial impact of shifting global trade policy as a headwind. Higher yields and package volumes were offset by rising transportation costs, wages, and trade policy impacts.
What else you need to know: FedEx's results come after the company completed the spinoff of FedEx Freight, which reports results on Thursday.
The company is often seen as a bellwether for the overall economy. Management said during the earnings call that it sees double-digit revenue gains from AI and data centers.
More from Yahoo Scout How is global trade policy impacting FedEx's operations? How significant is AI revenue opportunity for FedEx? Why did FedEx stock drop despite beating earnings expectations? What benefits does FedEx expect from spinning off Freight?
"With the successful spin-off of FedEx Freight, we are entering this next chapter positioned to grow while further optimizing our network, lowering our cost to serve, creating meaningful long-term value, and driving robust free cash flow," FedEx CEO Raj Subramaniam said in the company's earnings release.
Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on X at @ines_ferre.
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