UPS beats earnings expectations, raises full-year guidance - CNBC

What the report says

CNBC reported that United Parcel Service topped analysts’ expectations for the second quarter and increased its full-year 2026 outlook, even as the company warned that U.S. revenue in the third quarter is likely to be flat. UPS shares finished the day down about 6% after the report Tuesday.

For the quarter ended June 30, UPS posted revenue of $22.8 billion and adjusted earnings of $1.76 per share, above LSEG-polled expectations of $21.81 billion in revenue and $1.66 per share. Net income fell to $604 million, or 71 cents per share, from $1.28 billion, or $1.51 per share, a year earlier. On an adjusted basis, profit was $1.5 billion.

The company raised its 2026 guidance to consolidated revenue of $91.2 billion and adjusted diluted earnings of about $7.22 per share. CEO Carol Tomé told CNBC and analysts that UPS has moved past disruptions tied to its transformation plan, including a driver buyout program and a planned reduction in Amazon-related volume. Executives said the Amazon “glide-down” removed about 2 million packages a day and cut roughly $4.5 billion in related expenses so far.

UPS is trying to reshape its network around higher-return shipments, automation and growth areas such as healthcare logistics. CNBC reported that domestic revenue rose 6% in the quarter, international revenue increased 12.5%, and supply chain solutions revenue grew 7.8%. The company said healthcare revenue exceeded $3 billion for a second straight quarter, while its network reconfiguration program has produced about $1.2 billion in benefits toward a $3 billion year-end goal.