FedEx Corporation (FDX.N) has demonstrated resilience in the face of shifting trade policies, reporting better-than-expected quarterly profits and revenue despite significant headwinds. The Memphis-based logistics giant saw its shares surge by 5.5% in extended trading on Thursday, defying Wall Street’s expectations of a decline. This performance was bolstered by robust domestic delivery growth and aggressive cost-cutting initiatives, which helped offset a 3% drop in international export volumes. The U.S. government’s decision to end the ‘de minimis’ exemption for low-value shipments from China and Hong Kong, effective May 2, 2024, has been a major challenge. This policy change alone reduced FedEx’s first-quarter revenue by $150 million, with similar impacts anticipated in subsequent quarters. Chief Customer Officer Brie Carere highlighted that trade policies, including the de minimis exemption’s termination, represent a $1 billion revenue ‘headwind’ for the fiscal year. Despite these pressures, FedEx achieved a 4% increase in overall average daily package volume, driven by a 5% rise in domestic deliveries. The company’s operating margin also improved to 6%, up from 5.2% in the previous quarter, reflecting the success of its $1 billion cost-saving plan. FedEx reported an adjusted profit of $912 million, or $3.83 per share, for the quarter ending August 31, surpassing analysts’ estimates of $3.59 per share. Quarterly revenue reached $22.24 billion, exceeding the projected $21.66 billion. Looking ahead, FedEx forecasts full-year adjusted earnings between $17.20 and $19.00 per share, slightly below the midpoint of analysts’ average estimate of $18.21. The company remains committed to its strategic initiatives, including $500 million in share repurchases and the planned spin-off of its freight segment by June 2026.