Global parcel delivery giant United Parcel Service Inc (UPS) lifted its annual revenue forecast on Tuesday, driven by a strategic pivot away from low-margin delivery services for its largest client, Amazon, towards more lucrative freight operations.

The company now anticipates 2026 revenue to reach $89.7 billion, surpassing the $88.7 billion figure reported last year.

In premarket trading on Tuesday, UPS shares climbed by 4%.

Concurrently, the company projected its 2026 adjusted operating margin to hit 9.6%.

UPS Chief Executive Carol Tomé stated, "Looking ahead, 2026 will be an inflection point for our strategy execution as we phase out lower-margin Amazon-related business, fueling sustained growth and margin expansion."

During premarket activity, UPS stock advanced 3.7%, while shares of rival Fedex Corporation rose approximately 1%.

UPS reported fourth-quarter consolidated revenue of $24.5 billion, compared to $25.3 billion in the same period last year.