UPS shares tank 15% after weak guidance, plan to slash Amazon deliveries by more than half
Shares of United Parcel Service plunged more than 15% Thursday after the company issued weak revenue guidance for the year and said it planned to cut deliveries for Amazon, its largest customer, by more than half.
Shares of United Parcel Service plunged more than 15% Thursday after the company issued weak revenue guidance for the year and said it planned to cut deliveries for Amazon, its largest customer, by more than half.
The shipping giant said in its fourth-quarter earnings report that it “reached an agreement in principle with its largest customer to lower its volume by more than 50% by the second half of 2026.”
At the same time, UPS said it is reconfiguring its U.S. network and launching multiyear efficiency initiatives that it expects will result in savings of approximately $1 billion.
UPS CEO Carol Tome said on a call with investors that Amazon is UPS’ largest customer, but it is not the company’s most profitable customer. “Its margin is very dilutive to the U.S. domestic business,” she added.
“We are making business and operational changes that, along with the foundational changes we’ve already made, will put us further down the path to become a more profitable, agile and differentiated UPS that is growing in the best parts of the market,” Tome said in a statement.
Rating: 5