# UPS (UPS) Q2 2026 earnings

Results filed 2026-07-28 for the quarter ended 2026-06-30. Source page: https://earnings.opennash.com/companies/ups/2026-q2/
Press release and exhibits: https://www.sec.gov/Archives/edgar/data/1090727/000162828026049912/0001628280-26-049912-index.htm
> 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

| Metric | Value | Change | Basis |
| --- | --- | --- | --- |
| Consolidated revenue | $22.8 billion | up 7.6% from a year ago | GAAP |
| Net income | $604 | down 52.9% from a year ago | GAAP |
| Diluted EPS | $0.71 | down 53.0% from a year ago | GAAP |
| Adjusted diluted EPS | $1.76 | up 13.5% from a year ago | non-GAAP |
| Consolidated operating profit | $930 million | down 49.0% from a year ago | GAAP |
| Adjusted consolidated operating profit | $2.1 billion | up 12.0% from a year ago | non-GAAP |
| Consolidated operating margin | 4.1% | compared with 8.6% a year ago | GAAP |
| Adjusted consolidated operating margin | 9.2% | compared with 8.8% a year ago | non-GAAP |
| Operating cash flow (six months) | $3,083 | compared with $2,666 million in the first six months of 2025 | GAAP |
| Free cash flow (six months) | $1,573 | compared with $742 million in the first six months of 2025 | non-GAAP |

## Segments and operating metrics

| Name | Value | Change |
| --- | --- | --- |
| U.S. Domestic Package revenue | $14,930 | up 6.0% from a year ago |
| International Package revenue | $5,044 | up 12.5% from a year ago |
| Supply Chain Solutions revenue | $2,860 | up 7.8% from a year ago |
| U.S. Domestic non-GAAP adjusted operating margin | 8.0% | compared with 7.0% a year ago |
| International operating margin | 12.4% | compared with 15.0% GAAP a year ago |
| U.S. Domestic average daily package volume (thousands) | 16,002 | down 3.3% from a year ago |

## Outlook

| Metric | Period | Outlook |
| --- | --- | --- |
| Consolidated revenue | full year 2026 | approximately $91.2 billion |
| Non-GAAP adjusted consolidated operating profit | full year 2026 | approximately $8.65 billion |
| Non-GAAP adjusted diluted EPS | full year 2026 | approximately $7.22 |
| Capital expenditures | full year 2026 | about $3.0 billion |
| Effective tax rate | full year 2026 | approximately 23.0% |
| Dividend payments | full year 2026 | around $5.4 billion |
| Costs excluded from non-GAAP adjusted operating expense | full year 2026 | between $1.3 and $1.5 billion |
| Program benefits from network reconfiguration and efficiency initiatives | full year 2026 | approximately $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.

## 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.