UPS Raises Annual Revenue Forecast After Reducing Dependence on Amazon

United Parcel Service (UPS) raised its annual revenue guidance on Tuesday after the company successfully executed its plan to reduce Amazon.com volumes and focused on more profitable shipments.

UPS, the world's largest package delivery company and often considered an indicator of global economic activity, has been optimizing its operations in recent periods. The company is closing certain facilities and reducing jobs to simplify its network and achieve $3 billion in cost savings by 2026.

The company now expects its revenue to reach $91.2 billion in 2026, with adjusted earnings per share of $7.22.

In April, UPS had projected revenue of $89.7 billion and approximately 9.6% adjusted operating margin.

UPS's Chief Executive Officer Carol Tomé stated that the company successfully completed the phased reduction of Amazon volumes and the restructuring of the associated logistics network.

The company was also helped by the use of fuel surcharges, which reduced the impact of rising energy costs. Additionally, higher package volumes supported revenue growth and improvement in quarterly results.