The parcel delivery company posted adjusted earnings per share of $1.76, topping Wall Street's estimate of $1.66
John Keeble/Getty Images
UPS reported second-quarter 2026 revenue of $22.8 billion and raised its full-year guidance, as the company delivered year-over-year growth in both revenue and adjusted operating profit. Adjusted earnings per share came in at $1.76 for the quarter ended June 30.
Analysts had expected adjusted earnings per share of $1.66 and revenue of $21.81 billion, according to CNBC.
On a GAAP basis, net income fell to $604 million, or $0.71 per diluted share, from $1.28 billion, or $1.51 per share, in the year-ago period. The company recorded $891 million in after-tax transformation charges, primarily employee separation costs tied to its Driver Choice Program.
UPS lifted its full-year revenue target to approximately $91.2 billion, a step up from the $89.7 billion it had previously projected, according to Reuters. The company also raised its full-year adjusted diluted EPS guidance to approximately $7.22 and adjusted operating profit guidance to approximately $8.65 billion, the company said.
"We entered the second half of the year with strong momentum and are raising our full-year consolidated revenue, non-GAAP adjusted operating profit and non-GAAP adjusted diluted EPS guidance," UPS CEO Carol Tomé said in a statement.
U.S. domestic revenue grew 6% to $14.9 billion, with a 9.3% jump in revenue per piece providing the primary tailwind. The segment's adjusted operating margin was 8%. International revenue climbed 12.5% to $5 billion, with the segment posting an operating margin of 12.4%. The supply chain solutions segment recorded $2.9 billion in revenue, a 7.8% gain, with healthcare logistics among the contributors to that increase.
The results follow a period of significant restructuring. UPS has been reducing its reliance on Amazon $AMZN, closing facilities, and cutting jobs as part of an effort to generate $3 billion in cost savings. Tomé said the company had completed its Amazon volume reduction and related network changes. Through the first half of 2026, UPS said its network reconfiguration initiative had generated roughly $1.2 billion in program benefits, putting the company on track toward its $3 billion full-year target.
UPS has been building out temperature-controlled logistics facilities spanning the Americas, Europe, and Asia to meet growing demand for refrigerated pharmaceutical delivery, including weight loss drugs. Healthcare has become a central part of the company's strategy as it shifts toward higher-margin services. Supply chain solutions — the segment that includes healthcare logistics — posted an adjusted operating margin of 10.2% in the second quarter, up from 8% a year earlier.
UPS stock rose in premarket trading on Tuesday.
Join 500,000+ readers who start their day with Quartz.
By subscribing, you agree to our Terms of Service and Privacy Policy.
