UBS Lowers Forecast After Amazon Cuts Shipments
UPS has raised its revenue and profit forecasts for 2026 after Amazon scaled back its shipping operations by millions of units and returned to strong growth in domestic demand. UPS now expects to generate revenues of up to $91.2 billion and adjusted earnings of $7.22 per share, surpassing previous expectations. This outlook reflects the company's plan to reduce low-margin deliveries and replace them with more profitable services, such as business-to-business shipments and temperature-controlled pharmaceutical transportation. While revenue is expected to remain stable in the current quarter, the company aims to drive growth through international air freight with higher margins during the holiday season, as well as a recovery in shipping volumes along the China-U.S. trade route. Despite this positive performance outlook, the company's shares fell by 6% amid investor doubts about meeting the 2026 targets.
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