“We expect ADV to be down mid-single digits year over year due to our actions with Amazon, which will be offset by a strong revenue per piece growth rate in the mid-single digits.”

In context

“rk. Pulling it all together, we are targeting $3 billion in savings related to the Amazon glide down. Moving to our 2026 financial outlook, for the full year 2026, on a consolidated basis, we expect revenue to be approximately $89.7 billion. Operating margin is expected to be approximately 9.6%, and diluted earnings per share are expected to be about flat to 2025. As a reminder, 2025 EPS included a $0.30 benefit from a sale-leaseback transaction. Lastly, our guidance for 2026 does not reflect any significant changes to the current tariff landscape. Now let me add color on the segment. Looking at U.S. Domestic, we are going through significant structural changes, and 2026 marks the inflection point of our strategy. Full year 2026 revenue is expected to be approximately flat year over year. We expect ADV to be down mid-single digits year over year due to our actions with Amazon, which will be offset by a strong revenue per piece growth rate in the mid-single digits. Full year operating margin is expected to be flat to 2025. Looking at the shape of the year, revenue and our cost structure in the back half of the year will be meaningfully different than in the beginning of the year. In the first half of the year, we expect a decline in revenue compared to 2025, driven by volume decline. Looking at 2026, we expect to generate an operating margin in the mid-single digits. This is due to short-term transition expenses related to Groundsaver, the timing of removing Amazon-related costs, including the execution of a voluntary driver separation program, and additional expense associated with the aircraft leases related to the retirement of our MD-11 fleet. In the second half of the year, we expect high single-digit operating profit growth, reflecting the com”