United Parcel Service (UPS) reported a 1.7% decline in total revenues year-over-year for the first half of 2025, attributed to weak consumer demand and high inflation. Average daily volumes fell by 3.8%, with forecasts suggesting a further decline of 9.4% for the entire year. UPS has also negotiated a reduction in business with Amazon by over 50% by June 2026, citing profitability concerns.
During its second-quarter 2025 results release, UPS did not provide revenue or operating profit guidance, citing ongoing macroeconomic uncertainties which are anticipated to keep financial pressure throughout the year. The company’s stock has seen a more than 30% decline year-to-date, underperforming its industry.
UPS currently holds a Zacks Rank of #4 (Sell), with earnings estimates for the upcoming quarters revised downwards over the past 60 days. The challenges reflect broader economic issues, including trade-related uncertainties and a competitive landscape with rivals like FedEx also cutting costs.
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