UPS raises annual profit, revenue forecasts as higher-paying shipments boost margin

What happened

UPS raised its full-year profit and revenue forecasts after higher-paying international air shipments helped profits. It cut millions of lower-margin deliveries for its largest customer, Amazon. UPS now expects 2026 adjusted profit of about $7.28 per share and annual revenue of $92.6 billion.

Confirmed

Global impact / market context

UPS is choosing fewer but more profitable deliveries over volume. Higher-paying air shipments can lift profit per sale, which means each delivery earns more after costs. That supports earnings even with less total business, and the raised revenue forecast suggests management sees stronger demand ahead.

Analyst inference

The forecast increase signals UPS expects its shift away from low-profit Amazon volume to pay off. Investors may compare this with rivals still chasing package volume. The revenue target of $92.6 billion shows management expects the business to grow despite giving up deliveries for its largest customer.

Analyst inference

What to watch

1. UPS expects 2026 adjusted profit of around $7.28 per share, up from $7.22 forecast in July, and annual revenue of $92.6 billion, compared with $91.2 billion previously. Confirmed
2. Watch whether UPS continues cutting lower-margin Amazon deliveries; further cuts could reduce total package volume while possibly raising profit per sale on each remaining delivery. Proposed
3. Watch international air shipment demand. If higher-paying air volumes hold up, they can support profit per sale and help UPS meet its raised profit and revenue targets despite reduced delivery volume. Analyst inference

Evidence

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