FedEx reported fiscal fourth-quarter revenue of $25.01 billion, up 13% year-over-year, driven by higher shipping rates and increased package volumes. The Memphis-based shipping giant saw yields improve across its parcel operations, signaling pricing power in the competitive logistics market.

However, profit declined due to restructuring costs tied to the company's freight spinoff, business optimization expenses, and accounting transition to calendar-year reporting. Shares dropped 4.2% to $303.99 in after-hours trading Tuesday, despite a robust 36% year-to-date gain.

The results follow FedEx's June 1 spinoff of its freight division into a separate publicly traded entity. The board-approved breakup aims to sharpen FedEx's focus on its core parcel and logistics network amid intense competition from Amazon and UPS.

Investors now face a leaner FedEx focused purely on express shipping and logistics services, though near-term margin pressure persists from the restructuring. The company's ability to sustain volume growth while controlling costs will determine whether the strategic refocus delivers long-term value.