FedEx has reported disappointing results for its first quarter, with earnings per share missing estimates and a significant decline in revenue, leading to a lowered full-year outlook. The logistics giant's stock plummeted, dropping as much as 15% following the announcement. The company cited a 'challenging quarter' driven by decreased demand for priority shipping services and tough economic conditions, suggesting a broader economic slowdown. FedEx's net income fell by 27% year-over-year, raising concerns about the implications for the transportation and logistics sectors. Despite efforts to adapt through digital transformation and plan for rate hikes, the outlook remains grim as customers prioritize cost-saving measures over expedited deliveries.