UPS shares tumbled 10% after Amazon introduced its Supply Chain Services offering, granting external businesses access to Amazon’s vast freight, distribution and parcel shipping network. This move positions Amazon as a direct competitor to UPS across core logistics functions.

In 2025 Amazon delivered 6.7 billion packages domestically versus UPS’s 4.4 billion, and the gap continues to expand as Amazon targets small and medium enterprises that account for 34.5% of UPS’s domestic volume. Meanwhile, UPS’s revenue has declined at a 4.0% annual pace over three years, dipping to $21.2 billion in Q1 2026.

UPS’s operating margin stands at 8.9%, trailing the S&P 500 average of 18.5%, while its net income margin is 6.3%. The company generated $8.5 billion in operating cash flow, yielding under 10% cash flow margin compared to the broader market’s 20.9%.

UPS is deploying its Network of the Future program to automate facilities and consolidate its network, and is expanding into high-margin healthcare logistics. The balance sheet remains solid with $29 billion in debt against an $82 billion market cap and $5.9 billion in cash.