Finances

FedEx Corp. (FDX) released its fourth quarter and full-year earnings report on Tuesday, June 24. The company’s stock dropped by more than 5% even with reporting stronger-than-expected revenue.

Revenue came in at $22.22 billion for the quarter, up from $22.11 billion at this time last year. This was better than analysts’ expectations of quarterly revenue of $21.74 billion. Full-year revenue came in at $87.93 billion, up from $87.69 billion the previous year.

“I am proud of the FedEx team for a solid finish to the fiscal year, delivering excellent service for our customers while achieving our structural cost reduction target, in the face of ongoing headwinds,” said FedEx CEO, Raj Subramaniam. “We will continue to leverage the unique scale and flexibility of our global network to support our customers as the demand environment evolves. Looking ahead, I am confident that our transformation initiatives, which are focused on integrating our networks and further reducing our cost-to-serve, will create meaningful long-term value.”

The company posted net income of $1.65 billion or $6.88 per adjusted share for the quarter. This was up from $1.47 billion or $5.94 per adjusted share one year ago. For the full year, the company reported net income of $4.09 billion or $16.81 per diluted share.

FedEx reported $18.98 billion in revenue for its Federal Express segment, reflecting a 1% year-over-year increase. The growth was driven by cost reduction benefits from the DRIVE initiative, higher U.S. and international export volumes and an improved base yield. Revenue for FedEx's Freight segment declined 4% to $2.30 billion, primarily due to lower fuel surcharges, reduced weight per shipment and higher wage rates. For the first quarter of fiscal 2026, FedEx expects earnings per diluted share to be between $2.90 and $3.50 with revenue growth to be flat to 2% year-over-year.

FedEx Corp. (FDX) shares ended the week at $228.91, up 2% for the week.

Paychex Quarterly Report

Paychex, Inc. (PAYX) released its fourth quarter and full-year earnings report on Wednesday, June 25. Despite the payroll service provider reporting increased revenue, its shares dropped by over 7% following the release of the report.

For the quarter, the company reported total revenue of $1.43 billion. This was up 10% from $1.30 billion in the same quarter last year and just below analysts' expectations of $1.44 billion in revenue. Full-year revenue came in at $5.57 billion, up from $5.28 billion the previous year.

“Paychex demonstrated solid performance this year against our strategic objectives, underscoring our ability to effectively navigate dynamic market conditions while continuing to enhance our customer experience and market position, and maintaining our industry-leading operating margins,” said Paychex CEO, John Gibson. “Our strong client retention this year is a testament to the value we deliver as a trusted partner in our customers' growth and success, particularly during challenging and uncertain times.”

Paychex posted net income of $297.2 million or $0.82 per adjusted share for the quarter. This was down from net income of $379.9 million or $1.05 per adjusted share this time last year. For the full year, the company reported net income of $1.66 billion or $4.58 per diluted share.

The Rochester, New York-based company saw an increase in revenue across all service segments. Professional Employer Organization (PEO) and Insurance Solutions revenue increased 4% to $340.3 million for the quarter. Management Solutions revenue rose 12% to $1.0 billion for the fourth quarter, which was attributed to the acquisition of Paycor and higher revenue per client. For fiscal year 2026, the company expects revenue growth of 16.5% to 18.5% and adjusted diluted earnings per share to increase 8.5% to 10.5%.

Paychex, Inc. (PAYX) shares closed at $143.94, down 4% for the week.

General Mills Releases Earnings Report

General Mills, Inc. (GIS) posted its fourth quarter and full-year earnings report on Wednesday, June 25. The company’s stock fell by over 3% after reporting lower than expected sales for the quarter.  

Net sales totaled $4.56 billion for the quarter, down 3% from $4.71 billion one year ago. Quarterly revenue missed analysts’ estimates of $4.58 billion. Full-year revenue came in at $19.49 billion, down from $19.86 billion the previous year.

“Our number one goal in fiscal 2026 is to restore volume-driven organic sales growth,” said General Mills CEO, Jeff Harmening. “To do that, we will invest further in consumer value, product news, innovation, and brand building, guided by our remarkable experience framework and highlighted by Blue Buffalo’s national launch into fresh pet food coming later in calendar 2025. With a clear framework centered on remarkability and positive early returns from our Q4 investments, I am confident our fiscal 2026 plans will put us on a path back to driving long-term growth in line with our shareholder return model.”

The company reported net income of $294.0 million or $0.53 per adjusted share for the quarter. This was down from $557.5 million or $0.98 per adjusted share during the same quarter last year. For the full year, the company reported net income of $2.30 billion or $4.10 per diluted share.

General Mills reported that their operating profit decreased 35% to $504.0 million for the quarter. In the fourth quarter, General Mills reported $2.56 billion in net sales for its North America Retail segment, a 10% decline from the same time last year. The North America Pet segment increased 12% to $675.2 million during the quarter. The company’s International segment increased 11% to $738.9 million in net sales. For fiscal 2026 the company anticipates organic sales to be down 1% to up 1% year-over-year.

General Mills, Inc. (GIS) shares ended the week at $50.52, down 5% for the week.

The Dow started the week 6/23 at 42,179 and closed at 43,819 on 6/27. The S&P 500 started the week at 5,970 and closed at 6,173. The NASDAQ started the week at 19,551 and closed at 20,273.

U.S. Treasury yields declined early in the week following a weaker-than-expected consumer confidence report. Yields continued to trend lower at the end of the week as the continuing claims for unemployment rose more than expected.

On Tuesday, the Conference Board reported that its consumer confidence index fell 5.4 points to 93.0 in June. That marked a decline from May’s reading of 98.4 and came in below economists’ forecast of 99.8. The decline reflected lingering concerns over tariffs, inflation and broader economic uncertainty, which continue to weigh on consumer sentiment.

“Tariffs remained on top of consumers’ minds and were frequently associated with concerns about their negative impacts on the economy and prices,” said senior economist of global indicators at the Conference Board, Stephanie Guichard. “Inflation and high prices were another important concern cited by consumers in June.”

The benchmark 10-year Treasury note yield opened the week of June 23 at 4.38% and traded as low as 4.24% on Thursday. The 30-year Treasury bond opened the week at 4.90% and traded as low as 4.80% on Thursday.

On Thursday, the U.S. Department of Labor reported that initial claims for unemployment were 236,000 for the week ending June 21. This was down 10,000 from the prior week and fell under analysts’ expectations of 245,000. Continuing unemployment claims increased by 37,000 to 1.97 million.

“The data are consistent with softening of labor market conditions, particularly on the hiring side of the labor market equation,” said lead economist at Oxford Economics, Nancy Vanden Houten. “For now, we don't think the labor market is weak enough to prompt the Fed to cut rates before December, but the risk is increasing that once the Fed starts to lower rates, it will have some catching up to do.”

The 10-year Treasury note yield finished the week of 6/23 at 4.29%, while the 30-year Treasury note yield finished the week at 4.83%.

Freddie Mac released its latest Primary Mortgage Market Survey on Thursday, June 26. The survey showed that the 30-year mortgage rate fell for the fourth consecutive week.

This week, the 30-year fixed mortgage rate averaged 6.77%, a decrease from last week’s average of 6.81%. Last year at this time, the 30-year fixed mortgage rate averaged 6.86%.

The 15-year fixed mortgage rate averaged 5.89% this week, down from last week’s average of 5.96%. During the same week last year, the 15-year fixed mortgage rate averaged 6.16%.

“Borrowers should find comfort in the stability of mortgage rates, which have only fluctuated within a narrow 15-basis point range since mid-April,” said chief economist at Freddie Mac, Sam Khater. “Although recent data show that home sales remain low, the resulting available inventory provides homebuyers with a wider range of options to consider when entering the market.”

Based on published national averages, the savings rate was 0.38% as of 6/16. The one-year CD averaged 1.62%.

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