UPS posts a 6.7% earnings surprise as adjusted profitability and revenue growth strengthen.
Stock Earnings Results
July 28, 2026
Table of Contents
July 28, 2026
United Parcel Service, Inc. (NYSE: UPS) reported second-quarter 2026 results above expectations, supported by higher revenue, adjusted operating profit growth, margin expansion, stronger segment revenue, and raised full-year guidance.
UPS is a global logistics and package delivery company that provides domestic package delivery, international shipping, freight forwarding, healthcare logistics, supply chain services, and integrated logistics solutions across more than 200 countries and territories.
The company reported non-GAAP adjusted EPS of $1.76, above estimates of $1.65, representing a 6.7% earnings surprise. Revenue came in at $22.83 billion, above estimates of $21.75 billion, with revenue growth of 7.6%.
Consolidated revenue was $22.8 billion.
Consolidated operating profit was $930 million.
Non-GAAP adjusted consolidated operating profit was $2.1 billion.
GAAP diluted EPS was $0.71.
Non-GAAP adjusted diluted EPS was $1.76.
GAAP results included after-tax transformation charges of $891 million, or $1.05 per diluted share.
Those charges were mainly tied to employee separation costs from the completed Driver Choice Program.
Consolidated operating margin was 4.1%.
Non-GAAP adjusted consolidated operating margin was 9.2%.
Adjusted operating margin improved as UPS completed its Amazon glide down and network reconfiguration initiatives.
CEO Carol Tomé said the quarter marked an expected and significant shift in performance.
Management said UPS entered the second half of the year with stronger momentum.
U.S. Domestic revenue increased 6.0% to $14.93 billion.
The increase was driven by a 9.3% rise in revenue per piece.
GAAP operating profit was $16 million.
Non-GAAP adjusted operating profit was $1.19 billion.
GAAP operating margin was 0.1%, while non-GAAP adjusted operating margin was 8.0%.
The large gap between GAAP and adjusted profit was mainly tied to transformation costs.
International revenue increased 12.5% to $5.04 billion.
The increase was driven by an 18.9% rise in revenue per piece.
Operating profit was $623 million.
Operating margin was 12.4% on both a GAAP and non-GAAP adjusted basis.
International remained the highest-margin reported segment in the quarter.
Supply Chain Solutions revenue increased 7.8% to $2.86 billion.
The increase was primarily driven by growth in forwarding and logistics, including healthcare.
Operating profit was $291 million.
Operating margin was 10.2% on both a GAAP and non-GAAP adjusted basis.
The segment showed stronger profitability compared with the prior-year quarter.
UPS raised its full-year 2026 outlook.
The company now expects consolidated revenue of about $91.2 billion.
Non-GAAP adjusted operating profit is expected to be about $8.65 billion.
Non-GAAP adjusted diluted EPS is expected to be about $7.22.
UPS also confirmed expected capital expenditures of about $3.0 billion.
Dividend payments are expected to be around $5.4 billion, subject to board approval.
UPS delivered a stronger quarter as its restructuring efforts began to show clearer benefits.
Revenue beat expectations, adjusted EPS topped estimates, adjusted operating profit improved, and adjusted margin expanded. International and Supply Chain Solutions both showed solid growth, while U.S. Domestic revenue benefited from higher revenue per piece.
The key issue is that GAAP profit remained pressured by transformation charges, especially workforce reduction costs tied to the Driver Choice Program.
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