Shares of UPS (UPS) are down $20.29, or 15%, to $113.49 in pre-market trading after the company gave a full year 2025 consolidated revenue outlook of approximately $89.0B, which was significantly below consensus expectations. The shipping giant explained that it has reached an agreement in principle with “its largest customer,” which is known to be Amazon (AMZN), to lower its volume by more than 50% by the second half of 2026. On the company’s earnings call, UPS CEO Carol Tome said it “became clear” near the end of 2024 that the company’s momentum could be lost if challenges were not faced “head on.” Amazon is the company’s “biggest customer,” but the volume from Amazon is very dilutive to “margins,” Tome noted on the call.
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