UPS Heads For Worst Day On Record Over 2025 Outlook, Plans To Slash Amazon Deliveries — But Retail’s Buying The Dip

For the fourth quarter, UPS reported a consolidated revenue of $25.3 billion compared to $24.9 billion last year, falling short of an analyst estimate of $25.42 billion. Earnings per share (EPS) came in at $2.75 versus an estimate of $2.52, according to FinChat.

Shares of United Parcel Service Inc (UPS) tumbled over 14% on Thursday after the firm missed fourth-quarter revenue estimates, issued guidance that fell short of Wall Street estimates, and indicated a reduction in Amazon deliveries.

According to Koyfin data, this would be the worst single-day performance for the stock since it was listed in November 1999 if losses hold until the market closes.

UPS said in a statement that it had reached an agreement in principle with its largest customer to lower its volume by more than 50% by the second half of 2026.

According to a CNBC report, CEO Carol Tome said on a call with investors that Amazon is UPS’ largest customer but not the most profitable one. “Its margin is very dilutive to the U.S. domestic business,” she added.

Meanwhile, Amazon spokesperson Kelly Nantel told CNBC that UPS had requested a reduction in volume “due to their operational needs.” “We certainly respect their decision,” Nantel said. “We’ll continue to partner with them and many other carriers to serve our customers.”

For the fourth quarter, UPS reported a consolidated revenue of $25.3 billion compared to $24.9 billion last year, falling short of an analyst estimate of $25.42 billion. Earnings per share (EPS) came in at $2.75 versus an estimate of $2.52, according to FinChat.

For 2025, UPS expects consolidated revenue to be approximately $89 billion, significantly below a Wall Street estimate of $95 billion.

UPS said it is planning capital expenditures of about $3.5 billion, dividend payments of around $5.5 billion, subject to board approval, and share repurchases of around $1.0 billion.

On Thursday, UPS was the fourth-most trending ticker on Stocktwits. Retail sentiment soared into the ‘extremely bullish’ territory (96/100), hitting a year-high level. The move was accompanied by ‘extremely high’ retail chatter.

Retail chatter on Stocktwits indicated mixed opinions on the stock’s prospects.

UPS shares have lost over 7% year-to-date and are down over 20% over the past year. 

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