UPS CEO Carol Tome said on a call with investors that Amazon is UPS’ largest customer but that it isn't its most profitable customer.

UPS projected a decline in revenue for the current year, with a key factor being plans to phase out more than half of the business it does with Amazon over the next 18 months.

United Parcel Service forecast on Thursday downbeat 2025 revenue as it accelerates a plan to slash millions of deliveries for its largest customer, Amazon.com, a surprise move that sent shares tumbling as much as 18%.

Baird analyst Garrett Holland changed his rating on the stock to Hold from Buy and cut his price target to $130 from $160.

UPS is continuing to withdraw from its business relationship with Amazon. By the second half of 2026, UPS said it will cut its shipping volumes for Amazon by more than 50 percent under the companies' revised arrangement.