United Parcel Service Inc. projected annual revenue well below expectations, telling investors that a long-awaited rebound in demand for its parcel services won’t arrive this year.

United Parcel Service forecast revenue of $89 billion for this year, compared with the analysts expectation of $94.9 billion

(Reuters) - -United Parcel Service on Thursday forecast 2025 revenue below Wall Street estimates, as gains from cost cuts were offset by customers opting for cheaper, slower ground-based deliveries from more profitable air-based services. Shares of the world's largest package delivery fell more than 5% early in the trading session.

UPS' shares fell 5% before the bell after the company said it had reached an agreement with Amazon — without naming the firm but referring to it as its largest customer — to cut volumes it transports with UPS by more than 50% by the second half of next year.