In its latest earnings call on March 20, 2025, FedEx spotlighted its deepening investment in technology as a critical lever for efficiency, cost savings, and competitive advantage. While the company reported reported revenues of $22.2 billion, surpassing analyst expectations of $21.9 billion, the company’s adjusted earnings per share (EPS) came in at $4.51, slightly below the anticipated $4.56.
During the session, FedEx leaders made clear that its long-term strategy hinges on a digital transformation spanning every layer of its operations.
As a result, automation, artificial intelligence, and data analytics are now woven into FedEx’s core initiatives, including its multi-year DRIVE program aimed at delivering $4 billion in permanent cost reductions by fiscal 2027. “We’re deploying AI-enabled tools that allow us to dynamically align capacity with demand and rapidly respond to changes in volume and mix,” said CEO Raj Subramaniam.
Why It Matters: FedEx’s technology-forward approach is reflective of a shift across the logistics industry, where efficiency, flexibility, and customer responsiveness increasingly depend on digital infrastructure. As competitors sharpen their own tech strategies, FedEx’s execution in this space may determine how well it adapts and leads in a fast-changing market.
- AI-Powered Network Planning: FedEx is using AI to optimize routing and improve forecast accuracy. Subramaniam highlighted the value of “automated planning tools that help reduce manual intervention” and said this capability is “delivering tangible results in terms of operational reliability and cost.”
- Facility Automation at Scale: Over 40% of FedEx’s sortation operations are now automated, a shift the company says is “driving consistency and improving throughput.” COO Brie Carere added, “We’re leveraging automation not only to manage volume growth but also to reduce variability in our operations.”
- Advanced Supply Chain Visibility: FedEx referenced new “control tower” dashboards driven by AI and real-time data integration. These systems allow for live performance tracking and proactive rerouting when disruptions occur—tools that are increasingly crucial in today’s volatile logistics environment.
- Enhanced Digital Services: From upgraded delivery tracking to smarter customer support, FedEx is investing in tools that improve the end-user experience. Carere noted, “Our enhanced customer-facing technologies are helping reduce friction, improve transparency, and build loyalty at scale.”
- Tangible Financial Impact: These technology efforts are a core piece of the DRIVE transformation framework. Subramaniam reinforced this connection: “We are building a digitally connected and data-driven FedEx that is leaner, more agile, and structurally more profitable.”
Go Deeper -> FedEx Earnings Call Transcript – MarketBeat
