Key Takeaways
- United Parcel Service delivered Q2 earnings of $1.76 per share, surpassing analyst expectations of $1.66, with revenue reaching $22.8 billion versus the anticipated $21.84 billion
- Year-over-year revenue climbed 7.7% compared to $21.2 billion in the same quarter last year
- The company elevated its full-year 2026 adjusted earnings guidance to approximately $7.22 per share, with revenue expectations now at roughly $91.2 billion
- Shares gained approximately 1.8% during premarket hours on the news
- Chief Executive Carol Tomé characterized the quarter as representing “an expected and significant shift” in company trajectory
Shares of United Parcel Service climbed approximately 1.8% before the opening bell Tuesday following the delivery giant’s better-than-anticipated second-quarter performance, with the stock hovering around $114.50.
United Parcel Service, Inc., UPS
The company’s Q2 adjusted earnings landed at $1.76 per share, comfortably exceeding Wall Street’s projection of $1.66. Total revenue reached $22.8 billion, significantly above the consensus forecast of $21.84 billion.
In the comparable period last year, UPS recorded earnings of $1.55 per share on $21.2 billion in revenue. This translates to a solid 7.7% revenue increase on a year-over-year basis.
Chief Executive Carol Tomé acknowledged the dedication of UPS’s workforce throughout the previous 18 months as the organization finalized its Amazon volume adjustment and network restructuring. She described the quarterly performance as marking “an expected and significant shift” in operational momentum.
Heading into the Tuesday announcement, UPS shares had gained roughly 14% year-to-date, trading just below $113. However, the stock remains considerably below its post-pandemic peak that exceeded $210 per share.
The company’s U.S. Domestic division generated $14.93 billion in quarterly revenue, representing a 6.0% year-over-year increase. Revenue per package climbed 9.3%.
The International operation delivered even stronger results, with revenue jumping 12.5% to $5.04 billion. Revenue per package surged 18.9%, while the operating margin reached 12.4%.
Supply Chain Solutions revenue increased 7.8% to $2.86 billion, propelled by expansion in forwarding and logistics operations.
Company Upgrades Annual Projections
UPS boosted its full-year 2026 adjusted earnings per share forecast to approximately $7.22, exceeding the analyst consensus estimate of $7.13.
The company also lifted its revenue projection to approximately $91.2 billion, up from its previous guidance of $89.7 billion and above the consensus target of $90.38 billion.
Adjusted operating profit guidance was increased to approximately $8.65 billion, compared with the earlier projection of roughly $8.6 billion.
For the second quarter, consolidated adjusted operating profit totaled $2.1 billion, yielding an adjusted operating margin of 9.2%.
The past several years have presented challenges for UPS. Annual revenue reached its zenith above $100 billion in 2022 before declining to $88.7 billion in 2025. The phaseout of Amazon volume compounded difficulties alongside wage increases and weakening parcel demand.
Wall Street Perspective
Bernstein analyst David Vernon had anticipated a “solid” quarterly performance, noting that UPS should be approaching or reaching the conclusion of its primary challenges.
Vernon anticipates “upward pressure” on earnings projections moving into 2027. He maintains a Buy rating on the stock with a $133 price objective.
Current Wall Street forecasts suggest operating profit could expand to $10 billion by 2028, a level last achieved in 2023.
UPS shares are presently valued at approximately 15 times forward earnings, down from roughly 17 times five years earlier.
Management indicated that full-year adjusted operating profit is now projected to reach approximately $8.65 billion.
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