UPS pivots its strategy and believes in a return to growth $UPS

UPS is undergoing a major transformation that doesn't look good at first glance - revenues and profits are down year over year. The company is deliberately stepping back from its cooperation with Amazon because that business was high-volume but low-margin.

This is the key to the whole strategy. UPS is reducing the volume of shipments from Amazon and instead focusing on higher-margin segments, such as small and medium-sized businesses and healthcare logistics. That pushes results down in the short term, but should significantly improve profitability in the long term.

Management also expects the second half of 2026 to be a turning point. The company should return to revenue and profit growth as cost savings and the change in business structure begin to take full effect.

It's the classic trade-off between short-term pain and long-term gain. UPS is already closing facilities, cutting costs, and changing its entire logistics model so it won't be dependent on low-margin e-commerce volume.

From an investment perspective, this is not a growth story today but a multi-year turnaround. If the strategy works, UPS could become a significantly more profitable company than before. If it doesn't, it will lose a large volume of business without adequate replacement.

And you? Does it make sense to give up a large customer for higher margins, or do you think it's too risky a move?