United Parcel Service (UPS) has announced its financial targets and strategic initiatives for the upcoming years, forecasting a significant increase in revenue and efficiency through the integration of artificial intelligence (AI) and automation technologies. The company expects its 2026 consolidated revenue to range between $108 billion and $114 billion, surpassing analysts' expectations of $102.12 billion. This optimistic forecast is attributed to strategic investments in AI and automation, which are anticipated to boost productivity, reduce costs, and enhance both employee and customer experiences. UPS aims to achieve a free cash flow (FCF) of $17 billion to $18 billion and plans capital expenditures (Capex) amounting to 5.5% of total revenue for the 2024–2026 period. The company also anticipates a revenue dip of 1% to 2% in the first half of the year, followed by a 4% to 8% increase in the second half, with full-year revenue expectations set between $92 billion and $94.5 billion. The integration of AI into UPS's operations is expected to streamline processes, reduce reliance on labor for efficiency, and position the company to better handle international growth, inflation, and economic challenges. 'AI allows us to go faster,' says UPS CFO Brian Newman.