Key Facts on UPS’s Transformation Plans
United Parcel Service (NYSE: UPS) is shifting its strategy by reducing its Amazon delivery volume by 50% to focus on higher-margin customers. This decision comes in the context of Amazon accounting for 11.8% of UPS’s overall sales and 20-25% of its total U.S. package volume. Despite initial investor impatience and declining revenue due to the transition, management has reported a 1.6% increase in daily volumes among small and medium-sized businesses (SMBs) and a record $3 billion in revenue from healthcare product deliveries in the first quarter of 2026.
Share performance has been volatile, holding around $100 per share. Analysts expect earnings per share to stabilize before rising by 12.2% to $8 in 2027, reflecting a potential for growth as UPS’s strategy solidifies. Currently, UPS offers a forward dividend yield of 6.6%, trading at 14 times forward earnings, below its historical range of 15-20 times.
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