United Parcel Service Inc. projected annual revenue well below expectations, telling investors that a long-awaited rebound in demand for its parcel services won’t arrive this year.

(Reuters) - -United Parcel Service on Thursday forecast 2025 revenue below Wall Street estimates, as gains from cost cuts were offset by customers opting for cheaper, slower ground-based deliveries from more profitable air-based services. Shares of the world's largest package delivery fell more than 5% early in the trading session.

United Parcel Service forecast revenue of $89 billion for this year, compared with the analysts expectation of $94.9 billion

United Parcel Service on Thursday forecast 2025 revenue below expectations as the parcel delivery giant works to lower exposure to its largest customer, Amazon, and as other customers opt for cheaper,