FedEx posted higher second-quarter ⁠profit and revenue Thursday and lifted the low end of its full-year earnings outlook, as peak-season pricing actions and cost-cutting efforts helped offset softer shipment volumes.

The Memphis-based package delivery company reported an adjusted profit of $1.14 billion, or $4.82 per share, for the second quarter ended ‍November 30, up from $990 million, or $4.05 per share, a year earlier.

Shares ‍of the company were up 1.4% to $291 in after-hours trading.

FedEx has been pursuing a multi-year cost overhaul since 2023, aiming to ⁠take billions out of its operating base by idling aircraft, shuttering sites and integrating its formerly separate Ground and Express operations. For the fiscal year ending ​in May 2026, the company is targeting an additional $1 billion in savings.

"We successfully executed our growth strategy and advanced our network transformation, while navigating a highly challenging external environment," CEO Raj Subramaniam ‍said.

U.S. manufacturing contracted for the ninth consecutive month in November, with factories facing slumping ⁠orders and higher prices for inputs as the drag from import tariffs persisted, signaling weaker volumes for FedEx, which relies heavily on business-to-business shipments linked to industrial activity.

FedEx and rival UPS are viewed as barometers of the global economy, given their broad customer base ⁠across industries and geographies.

FedEx now projects annual ​profit of $17.80 to $19.00 per share, ⁠raising the low end of its previous $17.20 to $19.00 range.

It also lifted its 2026 revenue outlook, calling for ‍5% to 6% year-over-year growth, versus its earlier forecast of 4% to 6%.

After three consecutive years of flat or ‌shrinking sales, FedEx caught Wall Street off guard with 3% year-over-year revenue growth in the quarter ended August — and it has kept that momentum going with another quarter ⁠of revenue ​growth.

Second-quarter revenue climbed to $23.5 ‍billion, from $22.0 billion in the same period last year, extending the company's recent sales rebound.

FedEx also reaffirmed its capital spending and cost-savings plans, and ‍said it remains on track to spin off FedEx Freight on June 1, 2026. (Reporting by Lisa Baertlein in Los Angeles and Abhinav Parmar in Bengaluru; Editing by Alan Barona)