Key Takeaways
- United Parcel Service reported Q2 earnings per share of $1.76, surpassing analyst expectations of $1.66, with revenue reaching $22.8 billion versus the anticipated $21.84 billion
- Year-over-year revenue increased 7.7% compared to $21.2 billion in the same quarter of 2025
- The company elevated its full-year 2026 adjusted earnings forecast to approximately $7.22 per share and revenue projection to roughly $91.2 billion
- Shares climbed approximately 1.8% during premarket hours in response to the earnings announcement
- Chief Executive Carol Tomé characterized the quarter as representing “an expected and significant shift” in the company’s trajectory
United Parcel Service shares climbed approximately 1.8% during Tuesday’s premarket session following the delivery giant’s better-than-anticipated second-quarter results, with the stock hovering around $114.50.
United Parcel Service, Inc., UPS
The company’s Q2 adjusted earnings per share registered at $1.76, exceeding Wall Street’s projection of $1.66. Total revenue reached $22.8 billion, comfortably surpassing the consensus forecast of $21.84 billion.
In the comparable period last year, UPS reported earnings of $1.55 per share on $21.2 billion in revenue. This translates to a robust 7.7% year-over-year revenue expansion.
Chief Executive Carol Tomé praised UPS team members for their dedication throughout the preceding 18 months as the organization finalized its Amazon volume transition and network restructuring. She described the quarterly performance as “an expected and significant shift” in the company’s operating results.
Prior to Tuesday’s session, UPS shares had gained roughly 14% year-to-date, trading just below $113 per share. However, the stock remains significantly below its post-pandemic peak of over $210.
The U.S. Domestic division generated $14.93 billion in revenue, representing a 6.0% year-over-year increase. Revenue per package climbed 9.3%.
The International division posted even stronger results, with revenue surging 12.5% to $5.04 billion. Revenue per package soared 18.9%, while the operating margin reached 12.4%.
Supply Chain Solutions revenue advanced 7.8% to $2.86 billion, propelled by expansion in forwarding and logistics operations.
Company Raises Annual Projections
UPS increased its full-year 2026 adjusted earnings per share forecast to approximately $7.22, exceeding the analyst consensus estimate of $7.13.
The annual revenue forecast was elevated to approximately $91.2 billion, up from the previous guidance of $89.7 billion and surpassing the consensus projection of $90.38 billion.
Adjusted operating profit guidance was increased to approximately $8.65 billion, compared to the earlier target of roughly $8.6 billion.
Consolidated adjusted operating profit for the quarter totaled $2.1 billion, yielding an adjusted operating margin of 9.2%.
The company has navigated challenging conditions in recent years. Annual revenue reached a peak above $100 billion in 2022 before declining to $88.7 billion in 2025. The Amazon volume reduction compounded challenges from wage pressures and weakened parcel demand.
Wall Street Perspectives
Bernstein analyst David Vernon had anticipated a “solid” quarter, suggesting UPS should be approaching or reaching the conclusion of its primary obstacles.
Vernon anticipates “upward pressure” on earnings projections moving into 2027. He maintains a Buy rating on UPS with a price target of $133.
Current Wall Street estimates project operating profit expanding to $10 billion by 2028, a threshold last achieved in 2023.
UPS shares are presently valued at approximately 15 times forward earnings, compared to roughly 17 times five years earlier.
The company indicated that full-year adjusted operating profit is now projected to reach approximately $8.65 billion.
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