New York, January 28, 2026, 14:57 EST — during the regular session
- UPS shares slipped roughly 3% in afternoon trading, erasing some of Tuesday’s gains following the earnings report
- UPS is set to cut as many as 30,000 jobs and shut 24 facilities in 2026, scaling back its Amazon shipments
- Investors are focused on whether pricing gains and cost reductions will make up for a weaker first half
Shares of United Parcel Service dropped 3.2% to $103.82 in Wednesday afternoon trading, giving back some of the gains made earlier after the company’s quarterly earnings report.
The stock moved after UPS announced plans to cut up to 30,000 jobs and close 24 facilities in 2026, scaling back low-margin deliveries for Amazon. CEO Carol Tomé said the company intends to “glide down another million pieces per day” for Amazon next year. UPS also warned revenue will dip in the first half of 2026 before improving later. Evercore ISI analyst Jonathan Chappell noted, “UPS generated another quarterly beat, primarily through (revenue per piece) upside.” 1
The coming months are crucial as UPS aims to swap volume for better margins. Amazon remains a key player in this balance, along with UPS’s challenge of reshaping its network without hurting service or sacrificing lucrative contracts.
That makes the shares highly reactive to even minor updates. When a carrier flags a weaker first half, traders zero in on the timing—pinning down when the slowdown will end and what might step in to close the gap.
UPS reported fourth-quarter revenue of $24.5 billion and non-GAAP adjusted earnings of $2.38 per share in its Tuesday earnings release, compared to GAAP diluted earnings of $2.10 per share. The non-GAAP figures exclude certain transformation costs and other items the company considers outside its core operations. Looking ahead, UPS forecasted 2026 revenue around $89.7 billion with a non-GAAP adjusted operating margin near 9.6%. The board also approved a quarterly dividend of $1.64 per share, payable March 5 to shareholders of record on Feb. 17. 2
HSBC bumped UPS to a “Buy” rating on Wednesday, lifting its price target to $125 from $100. Analyst Parash Jain cited “improved visibility on volume and margin recovery” starting in the second half of 2026, though he did warn of some short-term softness. 3
Transport stocks showed a mixed picture Wednesday. FedEx edged up 0.6%, but Amazon dropped 0.9%. The iShares U.S. Transportation ETF slipped 0.6%, while the S&P 500’s primary ETF saw little movement.
Labor risks remain. Teamsters spokeswoman Kara Deniz said members are likely to turn down UPS’s buyout offer, describing the terms as “disrespectful,” according to a report by The Washington Post. 4
Investors are currently focused on the rate of job losses and buyouts, along with facility shutdowns, and how fast UPS can compensate for lost Amazon shipments with higher-margin deliveries. The March 5 dividend payment is the next key date, but the real trigger will be if management can demonstrate any early signs of recovery before the first half’s downturn ends.
