United Parcel Service Inc (NYSE:UPS) shares slumped more than 16% after the parcel delivery service’s 2025 revenue guidance disappointed investors.
The company guided revenue of $89 billion, below the Street consensus of $94.9 billion.
It also revealed that due to its largest customer lowering its volume by more than 50% in the second half of 2026 and insourcing its UPS SurePost product, it is reconfiguring its US network and launching efficiency initiatives to drive $1 billion in savings.
“We are making business and operational changes that, along with the foundational changes we’ve already made, will put us further down the path to becoming a more profitable, agile and differentiated UPS that is growing in the best parts of the market,” UPS CEO Carol Tomé said in a statement.
For the fourth quarter, UPS reported earnings per share of $2.75, ahead of estimates of $2.53.
Revenue was $25.3 billion, up from $24.9 billion in the year-ago quarter but falling short of the $25.4 billion expected.
Shares of UPS traded down 16.5% at about $112 in the early afternoon on Thursday.