United Parcel Service (NYSE:UPS) Announces Quarterly Earnings Results, Beats Expectations By $0.10 EPS

Key Points

• UPS beat quarterly expectations: Adjusted EPS came in at $1.76 versus the $1.66 consensus, while revenue reached approximately $22.83 billion, above the $21.86 billion estimate.
• FY 2026 guidance was set at $7.22 EPS and approximately $91.2 billion in revenue, ahead of Wall Street expectations and suggesting improved demand and profitability.
• Despite the adjusted earnings beat, GAAP EPS was only $0.71 due largely to $891 million in after-tax transformation charges. Shares traded down 1.7%, while UPS maintained its $1.64 quarterly dividend, representing a 5.8% yield.

United Parcel Service (NYSE:UPS - Get Free Report) posted its quarterly earnings results on Tuesday. The transportation company reported $1.76 EPS for the quarter, topping analysts' consensus estimates of $1.66 by $0.10, FiscalAI reports. The business 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 35.95% and a net margin of 5.94%. United Parcel Service updated its FY 2026 guidance to 7.220-7.220 EPS.

United Parcel Service Trading Down 1.7%

Shares of UPS stock opened at $112.85 on Tuesday. The stock has a market cap of $95.92 billion, a P/E ratio of 18.26, a price-to-earnings-growth ratio of 1.83 and a beta of 1.05. United Parcel Service has a 1 year low of $82.00 and a 1 year high of $122.41. The company has a current ratio of 1.21, a quick ratio of 1.21 and a debt-to-equity ratio of 1.50. The stock has a 50 day simple moving average of $108.62 and a 200 day simple moving average of $106.71.

United Parcel Service Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Thursday, June 4th. Investors of record on Monday, May 18th were paid a $1.64 dividend. This represents a $6.56 annualized dividend and a dividend yield of 5.8%. The ex-dividend date was Monday, May 18th. United Parcel Service's payout ratio is 106.15%.

More United Parcel Service News

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

• Positive Sentiment: UPS reported second-quarter adjusted earnings of $1.76 per diluted share, exceeding the $1.66 analyst consensus, while revenue of approximately $22.8 billion surpassed the $21.86 billion estimate. UPS beats earnings expectations, raises full-year guidance
• Positive Sentiment: The company raised or reaffirmed its FY 2026 outlook above Wall Street expectations, projecting EPS of $7.22 versus consensus of $7.12 and revenue of $91.2 billion versus $90.0 billion. The guidance suggests management expects continued improvement in demand and profitability. UPS Releases 2Q 2026 Earnings
• Positive Sentiment: Adjusted consolidated operating profit reached approximately $2.1 billion, indicating stronger underlying performance than the headline GAAP figures suggest. The results may support the view that the worst of UPS’s recent operating downturn is passing. The Worst Should Be Over for UPS Stock
• Negative Sentiment: GAAP diluted EPS was only $0.71, compared with $1.76 on an adjusted basis. Results included approximately $891 million in after-tax transformation charges, primarily related to employee costs, while GAAP operating profit was $930 million. These charges could pressure near-term sentiment despite the adjusted earnings beat. UPS Releases 2Q 2026 Earnings

Hedge Funds Weigh In On United Parcel Service

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

Analyst Ratings Changes

A number of analysts have recently issued reports on UPS shares. Stephens raised United Parcel Service to a "strong-buy" rating in a research report on Wednesday, July 8th. UBS Group decreased their target price on United Parcel Service from $125.00 to $123.00 and set a "buy" rating on the stock in a report on Wednesday, April 29th. Susquehanna increased their price target on United Parcel Service from $116.00 to $118.00 and gave the company a "neutral" rating in a research note on Wednesday, April 29th. Citigroup raised their price target on United Parcel Service from $127.00 to $132.00 and gave the company a "buy" rating in a report on Thursday, July 9th. Finally, Citizens Jmp assumed coverage on shares of United Parcel Service in a research report on Wednesday, July 15th. They set a "market perform" rating for the company. Two equities research analysts have rated the stock with a Strong Buy rating, seven have given a Buy rating, twelve have given a Hold rating and three have given a Sell rating to the company. According to MarketBeat.com, the stock has an average rating of "Hold" and an average price target of $111.50.

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.

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