LOS ANGELES, July 28 (Reuters) – United Parcel Service raised its annual revenue forecast on Tuesday following a planned pullback in Amazon.com volumes and greater focus on more profitable shipments as a promised return to year-over-year growth materialized.
The world’s largest parcel delivery company, widely viewed as a barometer of global economic activity due to its exposure to a broad range of industries, has been consolidating its footprint by closing facilities and cutting jobs as it seeks to streamline operations and generate $3 billion in cost savings by 2026.
It expects to generate revenue of $91.2 billion in 2026 and adjusted earnings of $7.22 per share.
In April, it forecast 2026 revenue of $89.7 billion and consolidated adjusted operating margin of about 9.6%.
“We successfully completed our Amazon glide down and related network reconfiguration initiatives as designed,” CEO Carol Tome said.
UPS benefited from fuel surcharges that insulated margins from higher energy costs, while stronger package volumes helped drive higher yields and support quarterly performance.
(Reporting by Lisa Baertlein in Los Angeles and Abhinav Parmar in Bengaluru; Editing by Pooja Desai)
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