United Parcel Service (UPS) is in transition with lower volumes and potentially stronger earnings profile in the future. CEO Carol Tomé stated that the back half of 2026 is expected to be the inflection point as UPS moves through the final stages of a major network overhaul. The company is removing lower-margin e-commerce volume from Amazon and replacing it with better-paying shipments. UPS plans to cut that customer’s volume by more than 50% by June 2026 through its “Amazon glide-down” and is using that freed-up capacity to pursue higher-yield shipments in small and medium-sized businesses, B2B, and healthcare. However, the replacement volume needs to carry significantly higher contribution margins to offset the hit from shipping less volume with Amazon.