UPS Faces Sharp Decline After Earnings Miss

United Parcel Service Inc. (UPS) experienced a significant drop in its stock value, plummeting by over 13% after the release of its fourth-quarter earnings report for fiscal year 2024. The report revealed a revenue of $25.3 billion, falling short of analysts' expectations.

In a move that has raised eyebrows among investors, UPS announced a strategic agreement with its largest customer to reduce its volume by more than 50% in the latter half of 2026. Additionally, the company's revenue forecast for 2025, approximately $89 billion, also did not meet market expectations.

This financial update led to a 13.29% decrease in UPS's stock price during premarket trading, with shares selling for $116.00 each at 6:37 am ET.