UPS delivered better-than-expected earnings and an optimistic revenue forecast for 2026. The company is moving away from low-margin Amazon deliveries toward more profitable shipments.
Results:
Adj. EPS: $2.38
Revenue: $24.5B
Net Income: $1.79B
UPS outperformed expectations and completed the retirement of its MD-11 aircraft fleet as part of its modernization strategy. pic.twitter.com/HROb2axVLo
— EarningsTime (@Earnings_Time) January 27, 2026
The package delivery giant posted fourth-quarter profit of $1.79 billion, or $2.10 per share. That compares to $1.72 billion, or $2.01 per share, in the same period last year.
The quarter included $238 million in charges. The largest hit came from a $137 million write-off related to retiring the MD-11 aircraft fleet.
United Parcel Service, Inc., UPS
UPS completed the MD-11 retirement during the fourth quarter. The decision followed a November crash of a 34-year-old MD-11 cargo plane that killed at least 12 people.
After removing one-time costs like the fleet write-off and roughly $100 million in restructuring charges, adjusted earnings hit $2.38 per share. Wall Street analysts had expected $2.20 per share.
Revenue fell 3.2% to $24.48 billion from $25.3 billion a year earlier. The figure still topped analyst estimates of $24.01 billion.
The revenue decline reflects UPS’s deliberate strategy to reduce volumes from Amazon. The e-commerce giant was once the company’s largest customer.
CEO Carol Tomé called 2026 “an inflection point” as the Amazon transition wraps up. The company expects this shift to drive growth and margin expansion going forward.
UPS cut its workforce by approximately 48,000 positions last year. About 14,000 of those cuts were management roles.
The company closed daily operations at 93 leased and owned buildings. Automation has allowed UPS to operate with fewer facilities.
UPS expects 2026 revenue of approximately $89.7 billion. That beats the $88.05 billion analysts projected.
The company forecasts an adjusted operating margin of 9.6% for 2026. Capital expenditures are planned at around $3 billion.
UPS intends to pay approximately $5.4 billion in dividends, subject to board approval. The company will continue reviewing volume changes to identify more buildings for closure.
Shares rose 3.7% to $111.00 in premarket trading Tuesday. Rival FedEx gained about 1% during the same period.
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