UPS Lifts FY26 Outlook, Despite Weak Q2 Profit

(RTTNews) - Logistics major United Parcel Service Inc. (UPS) reported Tuesday shaply lower profit in its second quarter, hurt by transformation charges, despite higher revenues. Further, the firm lifted fiscal 2026 outlook.

In pre-market activity, the shares were gaining around 2.05 percent, trading at $115.20.

Carol Tomé, UPS chief executive officer, stated, "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."

Looking ahead for fiscal 2026, the company now expects adjusted earnings per share of around $7.22, adjusted operating profit of around $8.65 billion and consolidated revenues of around 91.2 billion.

The company previously said it expects adjusted operating margin of approximately 9.6 percent and consolidated revenue of approximately $89.7 billion.

UPS is still planning capital expenditures of about $3.0 billion and dividend payments of around $5.4 billion, subject to board approval.

In the second quarter, net earnings were $604 million, down from $1.28 billion a year ago. Earnings per share plunged to $0.71 from $1.51 a year ago.

The latest results included after-tax transformation charges of $891 million, or $1.05 per share, consisting primarily of employee separation costs associated with workforce reduction initiatives from recently completed Driver Choice Program.

Adjusted earnings were $1.50 billion or $1.76 per share for the period, compared to $1.31 billion or $1.55 per share a year ago.

The company's revenue for the period rose 7.6 percent to $22.834 billion from $21.221 billion last year.

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