United Parcel Service (UPS) announced its fourth quarter earnings report on Tuesday, Jan 27, before the market opened. But it was a double-edged surprise underscoring that a revenue beat can also come with a high cost: a massive secondary wave of 30,000 job cuts in operational roles in 2026 as part of a sweeping cost-reduction effort tied largely to Amazon. While the parcel delivery giant beat expectations, people focused more on the company’s plan to reconfigure operations, reduce total operational hour ...

Core Insights - FedEx reported an adjusted profit of $1.1 billion for the latest quarter, representing a 25% year-over-year increase, with revenue reaching $23.5 billion, up 7.7% year-over-year, surpassing Wall Street expectations [2] - The company experienced a surprising 3% growth in year-over-year revenue for the quarter ending in August, totaling $22.2 billion, which has led to a bullish sentiment among investors, with shares increasing by 27% since late September [3] - FedEx is implementing several initiatives aimed at unlocking shareholder value, including a new partnership with Amazon and plans to spin off its freight business by mid-2026 [4] Financial Performance - The adjusted profit of $1.1 billion and revenue of $23.5 billion both exceeded Wall Street's expectations, indicating a positive outlook for FedEx's operations during the holiday season [2] - FedEx's revenue growth in the latest quarter marks a turnaround after three years of flat or declining sales, with the company now projecting fiscal 2026 sales growth of 5% to 6% [4] - The company has raised its annual profit forecast to a range of $17.80 to $19 per share, up from the previous range of $17.20 to $19 [4] Strategic Initiatives - FedEx has secured new business from Amazon, which is expected to be fully onboarded by February, following UPS's reduced ties with the e-commerce giant [4] - The planned spin-off of FedEx's freight business aims to allow both resulting companies to focus better on their operations and capital allocation [4] - An ongoing cost-reduction program is anticipated to save $1 billion in fiscal 2026, further supporting the company's financial health [4]