UPS shares tank 14% after weak guidance, plan to slash Amazon deliveries by more than half – CNBC
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That is well below consensus estimates for 2025 revenue of $94.88 billion, according to analysts polled by LSEG.For the fourth quarter, UPS missed on revenue, reporting $25.30 billion versus $25.42 billion analysts anticipated in a survey by LSEG.Amazon has long relied on a mix of major carriers for deliveries, including UPS, FedEx and the U.S. Postal Service. But it has decreased the number of packages sent through UPS and other carriers in recent years as it looks to have more control over deliveries.Amazon has rapidly built up its own logistics empire since a 2013 holiday fiasco left its packages stranded in the hands of outside carriers. The company now oversees thousands of last-mile delivery companies that deliver packages exclusively for Amazon, as well as a budding in-house network of planes, trucks and ships. By some estimates, Amazon’s in-house logistics operations have grown to rival or exceed the size of major carriers.UPS has, for its part, taken more aggressive cost-control measures, including catering to more profitable delivery customers. On the investor call, Tome highlighted health care; small business; international; and business-to-business, or B2B, as “the best parts of the market” that it has leaned into more heavily. In recent quarters, UPS has benefited from an influx of volume from bargain retailers Temu and Shein, which have rapidly gained popularity in the U.S.Last January, UPS laid off 12,000 employees as part of a bid to realize $1 billion in cost savings.Got a confidential news tip? We want to hear from you.Sign up for free newsletters and get more CNBC delivered to your inboxGet this delivered to your inbox, and more info about our products and services.© 2025 CNBC LLC. All Rights Reserved. A Division of NBCUniversal
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