UPS Earnings Beat, Outlook Raised

United Parcel Service Inc. (UPS) reported July 28, 2026, that its earnings topped estimates, and management raised full-year 2026 guidance after completing an 18-month Amazon volume "glide down" and related network reconfiguration, which have begun delivering transformation benefits.

Quarter Results, Amazon Glide Down, and Segment Performance

UPS said in a press release that consolidated revenue for the quarter ended June 30, 2026, reached $22.8 billion, with non-GAAP adjusted diluted earnings per share (EPS) of $1.76. Adjusted consolidated operating profit rose about 12% year over year to $2.1 billion, yielding an adjusted operating margin near 9.2%. Management updated full-year guidance to approximately $91.2 billion in revenue, $8.65 billion in adjusted operating profit, and $7.22 in adjusted diluted EPS, citing stronger U.S. Domestic performance, higher revenue per piece, and realized transformation benefits.

Amazon accounted for about 9% of UPS’s revenue in the quarter, down roughly 100 basis points from a year earlier and below a pandemic peak above 13%. UPS completed its planned Amazon volume reduction during the quarter, which prompted facility closures and network changes. These initiatives generated about $1.2 billion in program benefits through the first half of 2026, toward a $3.0 billion full-year cost-savings target. Management indicated that major restructuring tied to the Amazon glide down is largely complete.

The quarter’s GAAP results included $891 million in after-tax transformation charges, equal to $1.05 per diluted share, mainly for employee separation costs linked to the Driver Choice Program. These charges reduced GAAP consolidated operating profit to $930 million and GAAP diluted EPS to $0.71. GAAP net income was $604 million, down from about $1.28 billion a year earlier.

U.S. Domestic Package revenue rose about 6% year over year to $14.9 billion, with adjusted operating profit increasing nearly 21% to roughly $1.2 billion. The U.S. Domestic adjusted operating margin stood near 8.0%. Revenue per piece increased between 9.3% and 11%, while average daily package volumes declined to about 19 million from 19.7 million a year earlier and over 24 million five years ago. International revenue climbed about 12.5% to $5.0 billion, with an adjusted operating margin near 12.4%. Supply Chain Solutions revenue rose nearly 8% to $2.9 billion, with adjusted operating margin expanding to about 10.2% from 8.0% a year earlier. Management described the quarter as an inflection point, with completed network reconfiguration, higher revenue per piece, and early transformation benefits positioning the company for expanding operating margins and profit growth.

"We successfully completed our Amazon glide down and related network reconfiguration initiatives as designed," said CEO Carol Tomé.

The company’s strategic pivot away from lower-margin Amazon volumes toward higher-margin areas such as small and medium-sized businesses, healthcare logistics, and temperature-controlled shipments supports the improved outlook.