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.

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.

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

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

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 (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.

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.

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In a report released yesterday, David Vernon from Bernstein maintained a Buy rating on United Parcel (UPS – Research Report), with a price

UPS said it reached an agreement in principle with its largest customer to lower its volume by more than 50% by the second half of 2026. In UPS's latest annual report, the company singled out Amazon.com Inc. (AMZN) and its affiliates, saying they represented about 12% of its revenue, nearly all in its U.S. package business.