FedEx saw revenues and profits decline in its fiscal first quarter as the company faced challenging market conditions, customers opted for less expensive

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.

Key Takeaways FedEx lowered its revenue and earnings outlook for fiscal 2025.The company's fiscal first-quarter results missed analysts' expectations on the top and bottom lines amid weaker demand for its priority shipping services.