UPS raises revenue guidance as it reduces Amazon delivery volume
UPS has increased its full-year revenue outlook to $92.6 billion, citing improved profitability after scaling back low-margin delivery services for Amazon.
UPS reported third-quarter results that surpassed investor expectations, prompting the company to raise its annual revenue forecast to $92.6 billion. The upward revision follows a deliberate strategy to reduce package delivery volumes for Amazon, which CEO Carol Tomé previously identified as a high-volume but low-margin segment that diluted domestic profitability.
Despite the reduction in primary delivery services, UPS intends to maintain its partnership with Amazon regarding product returns. Tomé noted that the company’s reverse logistics capabilities—specifically for label-less and box-less returns—remain a core strength. The firm views these services as more aligned with its goal of improving operating leverage than traditional e-commerce package delivery.
The shift is part of a broader reconfiguration of the UPS domestic network, which has involved widespread cost-cutting measures, including the closure of multiple facilities and thousands of job reductions. The company remains focused on streamlining operations to improve margins following a period of post-pandemic market recalibration.