UPS raises 2026 outlook after second quarter results exceed expectations

UPS raises 2026 outlook after second quarter results exceed expectations

Tue, July 28, 2026 at 5:25 PM GMT+3 2 min read

• UPS -0.92%

United Parcel Service Inc (NYSE:UPS) shares fell 6% following its second quarter 2026 earnings report as investors focused on weaker near-term domestic expectations, lower international operating profit and significant restructuring charges despite the company beating quarterly estimates and raising its full-year outlook.

UPS reported adjusted earnings per share of $1.76 for the quarter, ahead of analyst expectations of $1.66, while revenue of $22.8 billion also exceeded estimates of $21.84 billion.

The company's US Domestic segment reported revenue growth of 6% year-over-year to $14.9 billion, driven by a 9.3% increase in revenue per piece.

However, management's third quarter outlook indicated that domestic revenue is expected to remain flat year-over-year, with average daily volume expected to decline by mid-single digits. The outlook raised concerns that the recovery following the company's Amazon volume reduction and related network reconfiguration initiatives could take longer to materialize.

UPS's International segment also faced profitability pressure. While revenue increased 12.5% year-over-year to $5.04 billion, operating profit declined to $623 million from $672 million in the prior-year period. The company faced higher expenses, including increased fuel and operational network costs related to geopolitical conflicts in the Middle East, which weighed on overseas margins.

Investors also focused on the impact of UPS's restructuring efforts, with the company recording $891 million in after-tax transformation charges during the quarter. The costs were primarily related to employee separation expenses from the recently completed Driver Choice Program, which included workforce reduction initiatives involving approximately 7,500 drivers.

For 2026, UPS now expects consolidated revenue of approximately $91.2 billion, non-GAAP adjusted operating profit of approximately $8.65 billion and adjusted diluted earnings per share of approximately $7.22.

The company also maintained expectations for about $3 billion in capital expenditures and around $5.4 billion in dividend payments, subject to board approval.