Memphis-based FedEx was bolstered by a drive to bring down costs, which helped to counterbalance soft international volumes following the end of a tariff exemption for certain low-value products sent directly to consumers.

As part of a bid to slash expenses by $1 billion during its current fiscal year, FedEx has moved to shutter facilities, restructure divisions and park planes. The changes, along with indications of consumer resilience during a time of concern over tariff-fueled price hikes, gave lift to the company’s closely-monitored operating margin.

The company posted first-quarter earnings of $3.83 per share, beating analysts’ average forecast of $3.68, on revenue of $22.2 billion. That compared with consensus estimates of $21.69 billion.

For fiscal 2026, FedEx forecast earnings per share of $17.20 to $19.00, against Wall Street’s $18.25 estimate.

Excluding certain accounting and restructuring costs, earnings are expected at $14.20 to $16.00 per share.

The company projected revenue growth of 4% to 6% year-on-year and said it would keep capital spending at $4.5 billion, with emphasis on network optimization and automation.

FedEx cut its expected pension contributions to as much as $400 million from a prior $600 million, and kept its forecast for a 25% effective tax rate.

The guidance assumes no major shocks to the economy, fuel costs or trade flows.