Those pressures do not appear to be easing. In its fiscal 2025 first quarter, which ended Aug. 31, FedEx earned $3.60 per share on revenue of $21.6 billion, falling short of Wall Street's consensus estimates for earnings of $4.76 per share on sales of $21.9 billion.

FedEx sounded the alarm, and investors in its archrival are taking notice. Shares of United Parcel Service ( UPS -2.56%) traded down 3% as of 2 p.m. ET after FedEx missed quarterly expectations and lowered its full-year forecast.

The package-delivery giant said reduced demand for priority services and higher operating costs weighed on results.