UPDATE 1-UPS forecasts upbeat 2026 revenue on shift to higher-value shipments

-0.72%

+0.77%

-1.62%

United Parcel Service, Inc. Class B

UPS

95.86

-0.72%

FedEx Corporation

FDX

358.85

+0.77%

Amazon.com, Inc.

AMZN

205.37

-1.62%

Adds CEO comment in paragraph 4, details throughout

Jan 27 (Reuters) - United Parcel Service UPS.N forecast higher annual revenue on Tuesday, as it reduces low-margin deliveries for its biggest customer, Amazon, and shifts toward higher-paying shipments.

The world's largest package delivery company expects 2026 revenue to be $89.7 billion, compared to the $88.7 billion it reported last year.

It forecasts adjusted operating margin of 9.6% for 2026.

"Looking ahead, upon completion of the Amazon glide-down, 2026 will be an inflection point in the execution of our strategy to deliver growth and sustained margin expansion," CEO Carol Tome said in a statement.

Shares of the company were up 3.7% in premarket trading, while rival FedEx FDX.N gained about 1%.

UPS reported fourth-quarter consolidated revenue of $24.5 billion, compared with $25.3 billion a year earlier.

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