FedEx (FDX) shares plunged 10.72% on Friday after the shipping giant slashed its full-year profit and revenue forecasts, citing continued weakness in the U.S. industrial economy and uncertainty surrounding global trade policies. The company now expects fiscal year 2025 adjusted earnings per share to be between $18.00 and $18.60, down from its previous forecast of $19.00 to $20.00.

In its fiscal third-quarter earnings report released Thursday after market close, FedEx also revised its full-year revenue expectations, now projecting flat to slightly down year-over-year growth compared to its earlier forecast of approximately flat. The company attributed this downward revision to "continued weakness and uncertainty in the U.S. industrial economy," which is particularly impacting demand for FedEx's higher-margin business-to-business services.

The lowered outlook prompted several analysts to cut their price targets for FedEx stock, with concerns growing about the company's exposure to economic headwinds and potential impacts from new tariffs. Loop Capital took the most drastic action, downgrading FedEx to sell from hold, citing the company's vulnerability to a potential recession. As investors grappled with the implications of FedEx's cautious stance, the stock's sharp decline highlighted growing worries about the broader economic environment and its effects on the transportation sector.