United Parcel Service Inc (UPS.US) released its fourth-quarter earnings before the market opened on Tuesday Eastern Time, with its full-year revenue guidance surpassing expectations, indicating that its strategy of reshaping its network by cutting low-margin parcel business is beginning to yield results. Data shows that UPS's fourth-quarter sales reached $24.5 billion, also exceeding market expectations; earnings per share were $2.38, beating the analyst average estimate of $2.21. The Atlanta-based delivery giant stated it expects 2026 revenue to be approximately $89.7 billion, higher than the analyst average forecast of $87.95 billion. The company also anticipates an adjusted operating margin of approximately 9.6%. Regarding capital allocation and tax outlook, the full-year capital expenditure plan is about $3 billion, and total dividend payments are expected to be approximately $5.4 billion (subject to board approval). The full-year effective tax rate is projected to be around 23.0%. This outlook marks the company's first full-year revenue guidance in a year, signaling a restoration of business visibility after turbulent trade policies disrupted demand prospects last year. UPS has been attempting to tighten operations and enhance profitability by significantly reducing its business volume with its largest customer, Amazon.com Inc (AMZN.US). The company stated that a substantial portion of the business from the online retail giant is insufficiently profitable. This plan is expected to be completed by the middle of this year and has so far involved closing and consolidating dozens of sorting facilities and offering buyout packages to union drivers to reduce expenses. At the time of writing, United Parcel Service's stock price was up 3.6%. The company's stock fell 21% last year, while the S&P 500 index gained 16% over the same period. The company also announced that it retired its MD-11 fleet during the quarter. This follows an incident where an MD-11 cargo plane crashed near UPS's main hub in Louisville, Kentucky last November, after which the U.S. Federal Aviation Administration ordered all aircraft of that model to be grounded for inspection and repair.