11:51 AM EDT, 05/28/2025 (MT Newswires) -- FedEx's ( FDX ) fiscal Q4 earnings are expected to be weaker given the more volatile international business environment, UBS Securities said in a note Wednesday.

The investment firm lowered its fiscal Q4 earnings per share forecast to $5.80, compared with the consensus estimate of $6.01 and the previous estimate of $6.22.

UBS also cut its fiscal 2026 EPS estimate to $19 from $20.41 to reflect softer revenue growth and smaller margin improvements in both Express and Freight segments, according to the note. The forecast assumes total revenue growth of about 3% and modest margin gains, UBS said.

FedEx ( FDX ) is expected to achieve less cost savings in fiscal 2026 compared with prior years, with most of the targeted benefits likely to be achieved in fiscal 2027, UBS added.

UBS reduced its price target to $311 from $331, and maintained a buy rating on the stock.

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