UPS (UPS) Q2 2026 earnings

Combined Package Service On Tuesday, it announced second-quarter earnings results that beat Wall Street expectations and raised its full-year outlook, but said it expects domestic third-quarter revenue to be flat.

Shares of the delivery giant fell nearly 8% in early trading.

Here’s how the company performed in the second quarter compared to Wall Street expectations, according to a survey of analysts conducted by LSEG:

• Earnings per share: Adjusted $1.76, expected $1.66
• Revenues: 22.8 billion dollars, while the expectation was 21.81 billion dollars

For the quarter ended June 30, UPS reported net income of $604 million, or 71 cents per share, down significantly from $1.28 billion, or $1.51 per share, in the year-ago period. Taking into account one-time items, the company reported profit of $1.5 billion, or $1.76 per share.

The company also raised its forecast for full-year 2026; It currently expects consolidated revenue of $91.2 billion and adjusted diluted EPS of approximately $7.22 per share.

This is “the fourth quarter in a row where we’ve delivered results that exceed our expectations,” CEO Carol Tomé said on a call with analysts Tuesday.

“Going forward, our No. 1 priority is to continue moving the right packages and the right mix of volumes through our network,” he added.

Company executives said in the call that they expect domestic average daily volume to decline in the mid-single digits in the third quarter due to seasonal decline and the impact of the slowdown in the company’s operations. Amazon. UPS also expects revenue to remain flat year over year.

“If you ignore Amazon and the volume we deliberately brought to market, we actually grew our volume in the second quarter,” Tomé said.

UPS is in the midst of a turnaround strategy aimed at positioning the company for long-term, sustainable growth. The company is focused on improving automation in its networks and tapping into growing markets, including healthcare logistics.

Health care generated more than $3 billion in revenue for the second consecutive quarter, Tomé said on a call with analysts.

“We are the only carrier offering end-to-end solutions for complex healthcare with our own assets, providing complete control, visibility and best-in-class service,” he said.

In the second quarter, UPS reported a 6% increase in domestic revenue, driven by an increase in revenue per item and a 12.5% ​​increase in international revenue. Supply chain solutions revenue increased 7.8%, driven in part by growth in healthcare logistics.

The company added that it has received approximately $1.2 billion in program benefits from the network restructuring program, and that figure is expected to reach $3 billion by the end of the year.

In a call with analysts, Tomé said the company has successfully completed its journey with Amazon, eliminating approximately 2 million pieces of “low-end Amazon volume” per day and eliminating approximately $4.5 billion in related expenses so far.

“We now have a leaner, more automated and more agile network that will provide operating benefits as volume increases,” he said.

He added that the company is also investing in radio frequency identification and artificial intelligence to improve tracking capabilities, calling it “the most significant package visibility advancement in a decade.”

Tomé said UPS was “seeing momentum” in the China-to-U.S. lane, which returned to year-on-year growth starting in May.

“As we enter the second half of the year, we have gained momentum despite external factors such as war and fuel price volatility that could impact our results,” he said.