FedEx said a weaker industrial economy produced a “challenging” quarter that caused it to trim its outlook for later this year, a sign of possible cooling in the wider economy.

FedEx Corp. (FDX) is facing increasing pressure as its latest earnings report revealed a significant miss on both profit and revenue expectations, triggering a sharp drop in its stock price. Shares of the shipping giant plummeted nearly 15% following the release of its fiscal first-quarter results,

FedEx earnings were weak and will be in the future. This could be a sign that the global economy is slowing down.

FedEx reported a lower first-quarter profit on Thursday as demand in the package industry remained muted, especially for priority services.

The package-delivery giant said reduced demand for priority services and higher operating costs weighed on its results.

FedEx’s results were dragged down by weaker-than-expected demand, particularly in the U.S. domestic package market.

Andrew Graham, managing partner at Jackson Square Capital, shares his take on FedEx's latest financial results and its prospects. The Memphis-based company cut the top end of its full-year profit outlook and reported quarterly earnings below expectations on softer demand for package deliveries.

FedEx stock tumbled after the company reported disappointing earnings and turned in weak quarterly results Thursday and suffered a bevy of price target cuts and downgrades from Wall Street as a result.

FedEx came up short on top and bottom lines, and guidance revisions suggest there is more bad news to come in fiscal 2025.