United Parcel Service’s (UPS) newly launched electric delivery truck is seen in Compton, California, U.S., September 13, 2023.
Andrew Kelly | Reuters
United Parcel Service forecast higher annual revenue on Tuesday, as it reduces low-margin deliveries for its biggest customer, Amazon, and shifts toward higher-paying shipments.
The world’s largest package delivery company expects 2026 revenue to be $89.7 billion, compared to the $88.7 billion it reported last year.
It forecast an adjusted operating margin of 9.6% for 2026.
“Looking ahead, upon completion of the Amazon glide-down, 2026 will be an inflection point in the execution of our strategy to deliver growth and sustained margin expansion,” CEO Carol Tome said in a statement.
Shares of the company were up 3.7% in premarket trading, while rival FedEx gained about 1%.
UPS reported fourth-quarter consolidated revenue of $24.5 billion, compared with $25.3 billion a year earlier.