Jan 27 (Reuters) - United Parcel Service (UPS.N) , opens new tab forecast higher annual revenue ‌on Tuesday, as it reduces low-margin deliveries for its biggest customer, Amazon, and shifts toward ‌higher-paying shipments.

The world's largest package delivery company expects 2026 revenue to be $89.7 billion, compared to ‍the $88.7 billion it reported last year.

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It forecasts adjusted operating margin of 9.6% for ⁠2026.

"Looking ahead, upon completion ‍of the Amazon glide-down, 2026 will be ‌an ‌inflection point in the execution of our strategy to deliver growth and sustained margin expansion," ⁠CEO Carol ⁠Tome said in a statement.

Shares of the company were up 3.7% in premarket ‍trading, while rival FedEx (FDX.N) , opens new tab gained about 1%.

UPS reported fourth-quarter consolidated revenue of $24.5 billion, compared with $25.3 ‍billion a year earlier.

https://www.reuters.com/business/retail-consumer/ups-forecasts-higher-2026-revenue-2026-01-27/