UPS Revenue Challenges and Future Outlook
United Parcel Service (UPS) has seen its shares fall by 32% over the past five years, with revenue growth stagnant at below 3% during this period. In 2023, the company is projected to experience a 9% decline in revenue, following a continued downturn that began after a strong performance during the COVID-19 pandemic when revenue had risen in the mid-teens in 2020 and 2021.
As of early January 2026, UPS shares have shown some positive momentum, rising 9% in the first six trading days of the year and 32% since hitting a recent low three months ago. Analysts have recently increased their price targets for UPS, suggesting a potential return to earnings growth despite flat revenue. UPS maintains a dividend yield of 6.1%, but its high payout ratio of 98% introduces risks to future dividend increases.
