United Parcel Service (UPS) announced strong second-quarter 2026 results, surpassing analyst expectations for both revenue and earnings per share. The company reported $22.8 billion in consolidated revenue, exceeding the estimated $21.81 billion, and adjusted earnings per share of $1.76, above the $1.66 analyst consensus. This marks a 7.7% year-over-year revenue growth from $21.2 billion in Q2 last year. The U.S. Domestic segment contributed $14.93 billion in revenue, a 6.0% increase, with revenue per piece rising by 9.3%. Consolidated adjusted operating profit for the quarter reached $2.1 billion, with an adjusted operating margin of 9.2%, demonstrating a notable improvement.
Following these impressive results, UPS raised its full-year 2026 financial guidance. The consolidated revenue forecast was increased to approximately $91.2 billion, up from the previous $89.7 billion and above the consensus estimate of $90.38 billion. The consolidated non-GAAP adjusted operating profit guidance was also elevated to approximately $8.65 billion, an increase from the prior target of roughly $8.6 billion. Additionally, the non-GAAP adjusted diluted EPS guidance was raised to approximately $7.22, surpassing the analyst consensus of $7.13.
UPS CEO Carol Tomé attributed the improved performance to the successful completion of the company's "Amazon glide down" and related network reconfiguration initiatives over the past 18 months. She noted that these efforts marked a "significant shift" in performance, allowing UPS to enter the second half of the year with strong momentum. The company's turnaround plan, which includes increasing automation and exploring new markets like healthcare logistics, is designed for long-term sustainable growth. Wall Street analysts, such as Bernstein's David Vernon, view the quarter as solid and anticipate "upward pressure" on earnings estimates for 2027, with predictions of operating profit reaching $10 billion by 2028.
For the full year 2026, UPS also confirmed expected capital expenditures of about $3.0 billion and dividend payments of approximately $5.4 billion, subject to board approval. The effective tax rate is expected to remain around 23.0%. The company's GAAP results for Q2 2026 included after-tax transformation charges of $891 million, or $1.05 per diluted share, primarily linked to employee separation costs from workforce reduction initiatives, and anticipates non-GAAP adjusted operating expense to exclude between $1.3 billion and $1.5 billion in costs for the full year related to these initiatives.
