UPS Shifts Strategy Toward Margin-Led Growth

UPS said on its Jan. 27 fourth-quarter 2025 earnings call that it has nearly completed a multi-year plan to cut Amazon package volume by over 50%, reporting Q4 revenue of $24.5 billion and providing 2026 revenue guidance of $89.7 billion. Management highlighted automation (28% lower cost-per-piece in automated facilities), $3.5 billion 2025 cost savings, and international margin strength, positioning 2026 as a margin-led inflection point.