United Parcel Service (NYSE:UPS) Announces Quarterly Earnings Results

United Parcel Service (NYSE:UPS) released its quarterly earnings data on Tuesday. The transportation company reported $1.76 earnings per share for the quarter, beating analysts’ consensus estimates of $1.65 by $0.11, FiscalAI reports. United Parcel Service had a return on equity of 35.95% and a net margin of 5.94%.The firm had revenue of $22.83 billion during the quarter, compared to analyst estimates of $21.86 billion. During the same quarter in the prior year, the firm posted $1.55 earnings per share. The business’s quarterly revenue was up 7.6% compared to the same quarter last year. United Parcel Service updated its FY 2026 guidance to 7.220-7.220 EPS.

Here are the key takeaways from United Parcel Service’s conference call:

• Positive Sentiment: UPS raised its 2026 outlook, now expecting approximately $91.2 billion in revenue, $8.65 billion in operating profit, and diluted EPS of about $7.22, citing stronger-than-expected first-half performance.
• Positive Sentiment: The Amazon volume reduction and U.S. network restructuring were completed as planned. UPS eliminated roughly 2 million lower-quality pieces per day, reduced nearly 30,000 operational positions in the first half, and still expects approximately $3 billion of related benefits in 2026.
• Positive Sentiment: U.S. Domestic operating profit increased 21% year over year to $1.2 billion, while automation reached 68.5% of U.S. volume; management expects an ongoing 50–100 basis-point spread between revenue-per-piece and cost-per-piece growth to support margin expansion.
• Positive Sentiment: UPS is targeting higher-quality growth in SMB, healthcare, B2B, and digital services. SMB volume rose 4.3%, healthcare revenue exceeded $3 billion for a second consecutive quarter, and Supply Chain Solutions operating profit increased 37% to $291 million.
• Negative Sentiment: International operating profit fell $59 million year over year to $623 million, pressured by fuel, Middle East-related network disruption, and tariff impacts on certain trade lanes, although China–U.S. volume returned to growth in May.

United Parcel Service Stock Down 0.7%

Shares of United Parcel Service stock opened at $104.76 on Wednesday. United Parcel Service has a 1 year low of $82.00 and a 1 year high of $122.41. The firm has a market cap of $89.05 billion, a price-to-earnings ratio of 17.01, a PEG ratio of 1.80 and a beta of 1.05. The company has a 50-day moving average of $108.80 and a 200 day moving average of $106.71. The company has a debt-to-equity ratio of 1.50, a current ratio of 1.21 and a quick ratio of 1.21.

United Parcel Service Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, June 4th. Investors of record on Monday, May 18th were paid a $1.64 dividend. This represents a $6.56 annualized dividend and a dividend yield of 6.3%. The ex-dividend date was Monday, May 18th. United Parcel Service’s dividend payout ratio (DPR) is presently 106.15%.

Key United Parcel Service News

Here are the key news stories impacting United Parcel Service this week:

• Positive Sentiment: UPS reported second-quarter revenue of $22.83 billion and adjusted earnings of $1.76 per share, exceeding analyst expectations of approximately $21.86 billion and $1.65 per share. Revenue increased 7.6% year over year. UPS beats earnings expectations, raises full-year guidance
• Positive Sentiment: The company raised its full-year 2026 outlook to approximately $91.2 billion in revenue and $7.22 in adjusted EPS, above consensus estimates of $90.0 billion and $7.12, respectively. Pricing, segment growth and network efficiencies supported the improved forecast. UPS Q2 Earnings Beat as Pricing and Segment Growth Accelerate
• Positive Sentiment: Management said the planned reduction, or “glide down,” of lower-margin Amazon deliveries is largely complete. UPS is attempting to replace volume with more profitable shipments and efficiency gains, which could improve margins over time. Less Amazon, more profit
• Neutral Sentiment: U.S. average daily package volume fell 3.3% year over year as UPS intentionally removed lower-yield Amazon business. The strategy may benefit profitability, but it leaves investors watching whether higher-margin growth can offset lost volume. UPS Is Shrinking Package Volume and Making Money With Visibility
• Negative Sentiment: Profitability was weaker on a reported basis: consolidated operating profit was $930 million versus $2.1 billion on an adjusted basis, while $891 million of after-tax transformation charges reduced GAAP EPS to $0.71. Investors remain concerned about restructuring costs and the pace of margin recovery. UPS Releases 2Q 2026 Earnings
• Negative Sentiment: Wall Street remains cautious about lower near-term domestic expectations, declining package volumes, weaker international operating profit and elevated fuel costs. Those concerns overshadowed the earnings and guidance beats. UPS raises 2026 outlook after second quarter results exceed expectations
• Negative Sentiment: The broader last-mile delivery market is becoming more competitive as retailers diversify beyond UPS, FedEx and the Postal Service to meet faster free-delivery expectations. That trend could pressure UPS’s pricing power and long-term volume growth. Carrier diversification unravels the last-mile delivery duopoly

Analyst Upgrades and Downgrades

Several equities research analysts have weighed in on the stock. Susquehanna increased their price target on shares of United Parcel Service from $116.00 to $118.00 and gave the company a “neutral” rating in a research report on Wednesday, April 29th. UBS Group decreased their price objective on shares of United Parcel Service from $125.00 to $123.00 and set a “buy” rating on the stock in a research report on Wednesday, April 29th. Wall Street Zen downgraded shares of United Parcel Service from a “buy” rating to a “hold” rating in a research note on Sunday. Citizens Jmp started coverage on shares of United Parcel Service in a report on Wednesday, July 15th. They set a “market perform” rating for the company. Finally, Citigroup raised their target price on United Parcel Service from $127.00 to $132.00 and gave the stock a “buy” rating in a research note on Thursday, July 9th. Two equities research analysts have rated the stock with a Strong Buy rating, seven have issued a Buy rating, twelve have given a Hold rating and three have assigned a Sell rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of “Hold” and a consensus target price of $111.50.

Institutional Investors Weigh In On United Parcel Service

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Lazard Asset Management LLC increased its holdings in shares of United Parcel Service by 1.6% during the fourth quarter. Lazard Asset Management LLC now owns 6,477 shares of the transportation company’s stock valued at $642,000 after acquiring an additional 103 shares in the last quarter. Regal Investment Advisors LLC boosted its stake in United Parcel Service by 1.6% in the 3rd quarter. Regal Investment Advisors LLC now owns 7,129 shares of the transportation company’s stock worth $596,000 after purchasing an additional 114 shares in the last quarter. Acorns Advisers LLC boosted its stake in United Parcel Service by 3.1% in the 4th quarter. Acorns Advisers LLC now owns 3,864 shares of the transportation company’s stock worth $383,000 after purchasing an additional 115 shares in the last quarter. Clark Capital Management Group Inc. grew its position in United Parcel Service by 1.9% during the 4th quarter. Clark Capital Management Group Inc. now owns 7,675 shares of the transportation company’s stock valued at $761,000 after purchasing an additional 141 shares during the last quarter. Finally, Azimuth Capital Investment Management LLC increased its stake in United Parcel Service by 3.5% during the 4th quarter. Azimuth Capital Investment Management LLC now owns 4,400 shares of the transportation company’s stock valued at $436,000 after purchasing an additional 150 shares in the last quarter. Hedge funds and other institutional investors own 60.26% of the company’s stock.

About United Parcel Service

United Parcel Service (NYSE: UPS) is a global package delivery and supply chain management company that provides a broad range of transportation, logistics and e-commerce services. Its core business centers on small-package delivery and last-mile distribution for business and individual customers, supported by a network of ground transportation, air cargo operations (UPS Airlines) and sorting facilities. In addition to parcel delivery, UPS offers freight transportation, contract logistics, warehousing, customs brokerage and reverse-logistics solutions designed to support domestic and international commerce.

The company traces its roots to 1907 when it began as a small messenger service in the United States and later evolved into the United Parcel Service.