OpenNashEarnings

UPS (UPS) · Transportation

UPS Q2 2026 earnings: summary, key numbers & outlook

Results filed 28 Jul 2026 · Quarter ended 30 Jun 2026

Press release ↗Investor relations ↗

Summaries and transcripts are machine-generated and can contain errors.

In brief

UPS reported second-quarter 2026 consolidated revenues of $22.8 billion, diluted EPS of $0.71, and non-GAAP adjusted diluted EPS of $1.76, with a consolidated operating margin of 4.1% and a non-GAAP adjusted operating margin of 9.2%.

UPS grew revenue 7.6% to $22.8 billion in the second quarter, even though package volume fell 3.7%. Higher revenue per piece drove the growth. Reported profit dropped sharply because of $891 million in after-tax charges, mostly employee separation costs from the Driver Choice Program. Excluding those charges, operating profit rose 12.0% to $2.1 billion and margin widened to 9.2%.

Management raised its full-year outlook to about $91.2 billion in revenue, $8.65 billion in adjusted operating profit and $7.22 in adjusted EPS. It expects about $3 billion of savings from network changes this year. The main tension is volume: U.S. Domestic daily volume fell 3.3%, and adjusted cost per piece rose 8.0%. Fuel costs also jumped 60.4%.

Key numbers

Consolidated revenue · GAAP
$22.8 billion

up 7.6% from a year ago

Net income · GAAP
$604.0M

down 52.9% from a year ago

Diluted EPS · GAAP
$0.71

down 53.0% from a year ago

Adjusted diluted EPS · non-GAAP
$1.76

up 13.5% from a year ago

Consolidated operating profit · GAAP
$930 million

down 49.0% from a year ago

Adjusted consolidated operating profit · non-GAAP
$2.1 billion

up 12.0% from a year ago

Consolidated operating margin · GAAP
4.1%

compared with 8.6% a year ago

Adjusted consolidated operating margin · non-GAAP
9.2%

compared with 8.8% a year ago

Segment or metricValueChange
U.S. Domestic Package revenue$14.9Bup 6.0% from a year ago
International Package revenue$5.0Bup 12.5% from a year ago
Supply Chain Solutions revenue$2.9Bup 7.8% from a year ago
U.S. Domestic non-GAAP adjusted operating margin8.0%compared with 7.0% a year ago
International operating margin12.4%compared with 15.0% GAAP a year ago
U.S. Domestic average daily package volume16,002down 3.3% from a year ago
Where each number comes from
  • Consolidated revenue: “UPS (NYSE:UPS) today announced second-quarter 2026 consolidated revenues of $22.8 billion. Consolidated operating profit was $930 million;”
  • Net income: “Income tax expense | 157 | 379 | (222) | (58.6)% Net income | $604 | $1,283 | $(679) | (52.9)% Net income as a percentage of revenue”
  • Diluted EPS: “Diluted earnings per share were $0.71; and non-GAAP adjusted diluted earnings per share were $1.76.”
  • Adjusted diluted EPS: “Diluted earnings per share were $0.71; and non-GAAP adjusted diluted earnings per share were $1.76.”
  • Consolidated operating profit: “Consolidated operating profit was $930 million; and non-GAAP adjusted consolidated operating profit was $2.1 billion.”
  • Adjusted consolidated operating profit: “Consolidated operating profit was $930 million; and non-GAAP adjusted consolidated operating profit was $2.1 billion.”
  • Consolidated operating margin: “Consolidated Operating Margin of 4.1%; Non-GAAP Adj. Consolidated Operating Margin of 9.2% •Diluted EPS of $0.71”
  • Adjusted consolidated operating margin: “Consolidated Operating Margin of 4.1%; Non-GAAP Adj. Consolidated Operating Margin of 9.2% •Diluted EPS of $0.71”
  • U.S. Domestic Package revenue: “Revenue | $14,930 M | $14,083 M Operating profit | $16 M | $1,188 M | $916 M | $982 M”
  • International Package revenue: “Revenue | $5,044 M | $4,485 M Operating profit | $623 M | $623 M | $672 M | $682 M”
  • Supply Chain Solutions revenue: “Revenue | $2,860 M | $2,653 M Operating profit | $291 M | $291 M | $234 M | $212 M”
  • U.S. Domestic non-GAAP adjusted operating margin: “Revenue increased 6.0%, driven by a 9.3% increase in revenue per piece. •Operating margin was 0.1%; non-GAAP adjusted operating margin was 8.0%.”
  • International operating margin: “Revenue increased 12.5%, driven by an 18.9% increase in revenue per piece. •Operating margin on both a GAAP and non-GAAP adjusted basis was 12.4%.”
  • U.S. Domestic average daily package volume: “Average Daily U.S. Domestic Package Volume (in thousands) | 16,002 | 16,553 U.S. Domestic Package Cost Per Piece (GAAP) | $14.23 | $12.18 | 16.8%”

Copied from the press release ↗ and other documents in the SEC filing ↗. A figure is published only if its sentence is in the filing.

From the filingQ2 2026vs year agovs last quarter
Revenue$22.8B+7.6%+7.7%
Operating income$930.0M−49.0%−26.6%
Net income$604.0M−52.9%−30.1%
Diluted EPS$0.71−53.0%−30.4%
Free cash flow$166.0M—−86.1%
Operating margin4.1%−4.5 pts−1.9 pts

Calculated by code from XBRL, not by the model.

Outlook

MetricPeriodOutlook
Consolidated revenuefull year 2026approximately $91.2 billion
Non-GAAP adjusted consolidated operating profitfull year 2026approximately $8.65 billion
Non-GAAP adjusted diluted EPSfull year 2026approximately $7.22
Capital expendituresfull year 2026about $3.0 billion
Effective tax ratefull year 2026approximately 23.0%
Dividend paymentsfull year 2026around $5.4 billion
Costs excluded from non-GAAP adjusted operating expensefull year 2026between $1.3 and $1.5 billion
Program benefits from network reconfiguration and efficiency initiativesfull year 2026approximately $3 billion

Key takeaways

  1. Revenue grew despite falling package volume

    Consolidated revenue rose 7.6% to $22,834 million while consolidated volume fell 3.6%. Consolidated revenue per piece rose 11.3% to $15.96.

  2. Driver Choice charges crushed GAAP profit

    Operating profit was $930 million, down 49.0%, after $1,172 million of transformation strategy costs. After-tax charges were $891 million, or $1.05 per diluted share.

  3. Adjusted operating margin widened to 9.2%

    Non-GAAP adjusted operating profit rose 12.0% to $2,102 million. Adjusted operating margin was 9.2% versus 8.8% a year ago.

  4. Full-year outlook raised on all three headline measures

    UPS now expects revenue of approximately $91.2 billion, adjusted operating profit of approximately $8.65 billion and adjusted diluted EPS of approximately $7.22.

  5. Unit costs and fuel remain the pressure points

    U.S. Domestic non-GAAP adjusted cost per piece rose 8.0% to $13.09 as daily volume fell 3.3%. Fuel expense rose 60.4% to $1,697 million.

Charts

Revenue$22.8B+7.6% y/yQ2 2026
Q4 2024: $25.3B (worked out from the annual figure)Q4 ’24$25.3BQ1 2025: $21.5BQ1 ’25$21.5BQ2 2025: $21.2BQ2 ’25$21.2BQ3 2025: $21.4BQ3 ’25$21.4BQ4 2025: $24.5B (worked out from the annual figure)Q4 ’25$24.5BQ1 2026: $21.2BQ1 ’26$21.2BQ2 2026: $22.8BQ2 ’26$22.8BQ3 2026: $22.9BQ3 ’26$22.9B

Fourth quarter worked out from the annual figure.

Data
Q4 2024$25.3B *
Q1 2025$21.5B
Q2 2025$21.2B
Q3 2025$21.4B
Q4 2025$24.5B *
Q1 2026$21.2B
Q2 2026$22.8B
Q3 2026$22.9B
Diluted EPS (GAAP)$0.71−53.0% y/yQ2 2026
Q1 2025: $1.40Q1 ’25$1.40Q2 2025: $1.51Q2 ’25$1.51Q3 2025: $1.55Q3 ’25$1.55Q1 2026: $1.02Q1 ’26$1.02Q2 2026: $0.71Q2 ’26$0.71Q3 2026: $1.37Q3 ’26$1.37
Data
Q1 2025$1.40
Q2 2025$1.51
Q3 2025$1.55
Q1 2026$1.02
Q2 2026$0.71
Q3 2026$1.37

Fourth-quarter EPS appears once the press release is read; filings report it only for the full year.

Operating margin4.1%−4.5 pts y/yQ2 2026
Q4 2024: 11.6%Q4 ’2411.6%Q1 2025: 7.7%Q1 ’257.7%Q2 2025: 8.6%Q2 ’258.6%Q3 2025: 8.4%Q3 ’258.4%Q4 2025: 10.5%Q4 ’2510.5%Q1 2026: 6.0%Q1 ’266.0%Q2 2026: 4.1%Q2 ’264.1%Q3 2026: 7.6%Q3 ’267.6%
Data
Q4 202411.6%
Q1 20257.7%
Q2 20258.6%
Q3 20258.4%
Q4 202510.5%
Q1 20266.0%
Q2 20264.1%
Q3 20267.6%
Free cash flow$166.0MQ2 2026
Q4 2024: $2.2BQ4 ’24$2.2BQ1 2025: $1.4BQ1 ’25$1.4BQ2 2025: -$775.0MQ2 ’25-$775.0MQ3 2025: $1.5BQ3 ’25$1.5BQ4 2025: $2.6BQ4 ’25$2.6BQ1 2026: $1.2BQ1 ’26$1.2BQ2 2026: $166.0MQ2 ’26$166.0MQ3 2026: $2.4BQ3 ’26$2.4B
Data
Q4 2024$2.2B
Q1 2025$1.4B
Q2 2025-$775.0M
Q3 2025$1.5B
Q4 2025$2.6B
Q1 2026$1.2B
Q2 2026$166.0M
Q3 2026$2.4B

Operating cash flow minus capital expenditure, from cash flow statements.

Questions

What were UPS's headline results for Q2 2026?

Revenue was $22.8 billion, up 7.6% from a year ago. Diluted EPS was $0.71 (GAAP) and $1.76 (non-GAAP adjusted), with operating margins of 4.1% GAAP and 9.2% adjusted.

Why did GAAP earnings fall while adjusted earnings rose?

GAAP results included after-tax transformation charges of $891 million, or $1.05 per diluted share, mostly employee separation costs from the Driver Choice Program. Excluding them, adjusted EPS rose 13.5% to $1.76.

What is UPS's full-year 2026 guidance?

UPS raised its outlook to about $91.2 billion of revenue, about $8.65 billion of non-GAAP adjusted operating profit and about $7.22 of non-GAAP adjusted diluted EPS. It also confirmed capex of about $3.0 billion and a tax rate of approximately 23.0%.

How did UPS's three segments perform?

U.S. Domestic revenue rose 6.0% with an 8.0% adjusted operating margin. International revenue rose 12.5% at a 12.4% margin. Supply Chain Solutions revenue rose 7.8% at a 10.2% margin.

What are the main risks to UPS's outlook?

Package volume is shrinking, with U.S. Domestic daily volume down 3.3% and consolidated volume down 3.6%. Adjusted U.S. cost per piece rose 8.0%, fuel expense rose 60.4%, and UPS relies on about $3 billion of 2026 initiative benefits.

Documents

SEC filing