UPS: We entered the second half of the year with strong momentum

UPS has announced second-quarter 2026 consolidated revenues of $22.8 billion. Consolidated operating profit was $930 million; and non-GAAP adjusted consolidated operating profit was $2.1 billion. Diluted earnings per share were $0.71; and non-GAAP adjusted diluted earnings per share were $1.76.

For the second quarter of 2026, GAAP results included after-tax transformation charges of $891 million, or $1.05 per diluted share, consisting primarily of employee separation costs associated with workforce reduction initiatives from our recently completed Driver Choice Program.

“I want to thank all UPSers for their extraordinary work over the past 18 months as we successfully completed our Amazon glide down and related network reconfiguration initiatives as designed,” said Carol Tomé, UPS chief executive officer. “Our second-quarter results marked an expected and significant shift in our performance and we delivered both consolidated revenue and non-GAAP adjusted operating profit growth. We entered the second half of the year with strong momentum and are raising our full-year consolidated revenue, non-GAAP adjusted operating profit and non-GAAP adjusted diluted EPS guidance.”

U.S. Domestic Segment

•  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 Segment

• 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%.

Supply Chain Solutions¹

¹ Consists of operating segments that do not meet the criteria of a reportable segment under ASC Topic 280 – Segment Reporting.

• Revenue increased 7.8%, primarily due to growth in forwarding and logistics, including healthcare.
• Operating margin on both a GAAP and non-GAAP adjusted basis was 10.2%.

2026 Outlook

The company provides certain guidance on a non-GAAP adjusted basis because it is not possible to predict or provide a reconciliation reflecting the impact of various potential future events, including the impact of pension adjustments, certain strategic initiatives or other unanticipated events, which would be included in reported (GAAP) results and could be material.

For the full year 2026, the company is raising its guidance for consolidated revenue to approximately $91.2 billion, consolidated non-GAAP adjusted operating profit to approximately $8.65 billion, and non-GAAP adjusted diluted EPS to approximately $7.22.

The company also confirms expected capital expenditures of about $3.0 billion and dividend payments of around $5.4 billion, subject to board approval. The effective tax rate is still expected to be approximately 23.0%.

_{* “Non-GAAP Adjusted” or “Non-GAAP Adj.” amounts are non-GAAP adjusted financial measures. See the appendix to this release for a discussion of non-GAAP adjusted financial measures, including a reconciliation to the most closely correlated GAAP measure.}