United Parcel Service (NYSE:UPS) Announces Quarterly Earnings Results, Beats Estimates By $0.11 EPS

United Parcel Service (NYSE:UPS) announced its earnings results on Tuesday. The transportation company reported $1.76 EPS for the quarter, beating analysts’ consensus estimates of $1.65 by $0.11, FiscalAI reports. The company had revenue of $22.83 billion during the quarter, compared to analysts’ expectations of $21.86 billion. United Parcel Service had a return on equity of 37.50% and a net margin of 5.08%.United Parcel Service’s revenue for the quarter was up 7.6% on a year-over-year basis. During the same period last year, the business posted $1.55 EPS. 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 1.1%

United Parcel Service stock traded down $1.14 during trading on Thursday, reaching $103.42. The stock had a trading volume of 505,123 shares, compared to its average volume of 5,955,106. The company has a quick ratio of 1.21, a current ratio of 1.18 and a debt-to-equity ratio of 1.58. United Parcel Service has a 52-week low of $82.00 and a 52-week high of $122.41. The stock has a market cap of $87.91 billion, a PE ratio of 19.26, a P/E/G ratio of 1.68 and a beta of 1.05. The business has a 50 day moving average price of $108.92 and a 200 day moving average price of $106.70.

United Parcel Service Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Thursday, June 4th. Investors of record on Monday, May 18th were issued a $1.64 dividend. The ex-dividend date of this dividend was Monday, May 18th. This represents a $6.56 annualized dividend and a yield of 6.3%. United Parcel Service’s dividend payout ratio (DPR) is 121.93%.

Institutional Investors Weigh In On United Parcel Service

Hedge funds and other institutional investors have recently modified their holdings of the company. Compound Planning Inc. boosted its position in shares of United Parcel Service by 4.9% during the 4th quarter. Compound Planning Inc. now owns 20,091 shares of the transportation company’s stock worth $1,993,000 after acquiring an additional 936 shares in the last quarter. Claris Financial LLC purchased a new stake in United Parcel Service during the fourth quarter worth approximately $279,000. Axxcess Wealth Management LLC lifted its stake in United Parcel Service by 74.1% during the fourth quarter. Axxcess Wealth Management LLC now owns 14,474 shares of the transportation company’s stock worth $1,436,000 after purchasing an additional 6,162 shares during the last quarter. Corient Private Wealth LLC boosted its holdings in United Parcel Service by 104.0% in the fourth quarter. Corient Private Wealth LLC now owns 252,105 shares of the transportation company’s stock valued at $23,818,000 after purchasing an additional 128,540 shares in the last quarter. Finally, CrossGen Wealth LLC acquired a new position in United Parcel Service in the fourth quarter valued at approximately $33,000. 60.26% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

Several research firms have recently commented on UPS. Evercore lowered their price objective on shares of United Parcel Service from $115.00 to $113.00 and set an “in-line” rating for the company in a research note on Wednesday, April 22nd. Citigroup upped their target price on shares of United Parcel Service from $127.00 to $132.00 and gave the stock a “buy” rating in a research note on Thursday, July 9th. Susquehanna raised their price target on shares of United Parcel Service from $118.00 to $120.00 and gave the company a “neutral” rating in a research report on Wednesday. Stifel Nicolaus boosted their price target on shares of United Parcel Service from $114.00 to $115.00 and gave the stock a “buy” rating in a research note on Wednesday. Finally, Weiss Ratings upgraded United Parcel Service from a “sell (d+)” rating to a “hold (c-)” rating in a research note on Friday, July 10th. One equities research analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating, eleven have assigned a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of “Hold” and a consensus target price of $115.33.

Key Headlines Impacting United Parcel Service

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

• Positive Sentiment: UPS reported second-quarter revenue of approximately $22.8 billion and adjusted EPS of $1.76, exceeding Wall Street expectations. Revenue increased 7.6% year over year, supported by pricing, segment growth and network efficiencies. UPS Q2 Earnings Beat as Pricing and Segment Growth Accelerate
• Positive Sentiment: Management raised its full-year outlook and said the planned reduction of lower-margin Amazon shipments is largely complete. UPS expects pricing, premium services and a better package mix to support margin expansion in the second half. UPS Q2 Earnings Call Highlights Network Reset and Higher Outlook
• Positive Sentiment: Several analysts raised their price targets, including UBS to $124, Oppenheimer to $117, Susquehanna to $120 and Stifel to $115. Value-oriented investors also continue to cite UPS’s valuation, cash flow potential and dividend yield as attractive.
• Positive Sentiment: New digital tools for small and midsize businesses—including improved pickup management, faster label creation and expanded mobile features—could strengthen customer retention and shipping visibility. UPS Makes Shipping Easier than Ever with New Digital Tools for SMB Customers
• Neutral Sentiment: Analyst revisions were generally favorable but not uniformly bullish: BMO raised its target to $115 while maintaining a market-perform rating, and Stephens cut its target to $130 despite retaining an overweight rating.
• Negative Sentiment: Investor skepticism centers on a steep decline in profitability, restructuring charges, weaker international operating profit and softer near-term domestic expectations. U.S. average daily package volume fell 3.3%, partly because UPS is removing lower-yielding Amazon deliveries.
• Negative Sentiment: Analysts question whether cost pressures, Amazon’s growing delivery capabilities and increasing competition from alternative last-mile carriers will offset UPS’s improved shipment mix. The result is that a quarterly beat and higher guidance have not fully resolved concerns about growth and margins.

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.