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 on Thursday forecast downbeat 2025 revenue as it cuts back deliveries for its largest customer, Amazon, in an already challenging environment for the parcel delivery giant. Shares of UPS fell about 13% in premarket trading after the company,

United Parcel Service said on Thursday it expects 2025 revenue below Wall Street estimates, as gains from cost cuts are outweighed by customers continuing to opt for cheaper, slower ground-based deliveries from more profitable air-based services.

(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.

Parcel delivery company UPS (NYSE:UPS) will be announcing earnings results tomorrow before market hours. Here’s what investors should know.

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

The company said it had reached an agreement in principle with its top customer to lower volume by more than 50% by the end of 2025. UPS has also decided to insource all of its UPS SurePost products and reconfigure its U.S. network.

United Parcel Service's financials stabilized, with recent quarters showing revenue and net income growth. Read why UPS stock is a good investment opportunity.

United Parcel Service Inc. Cl B closed 14.27% below its 52-week high of $158.95, which the company reached on March 22nd.

United Parcel Service Inc (UPS) stock saw a modest uptick, ending the day at $136.26 which represents a slight increase of $3.23 or 2.43% from the prior close of $133.03. The stock opened at $133.9 and touched a low of $133.

The company said it had reached an agreement in principle with its top customer to lower volume by more than 50% by the second half of 2026. In its 2023 annual report, UPS said Amazon and its affiliates accounted for 11.8% of total revenue and listed changes in its relationship with the e-commerce giant as a risk factor.

With U.S. stock markets set to open in two hours, Celestica Inc. (CLS) was up 12.7% in pre-market trading, and Alkermes PLC (ALKS) was up 10.9%. Back To Top