UPS Stock Jumps After Best Quarter in Years — Is the Worst Over?

TLDR

• UPS posted Q2 EPS of $1.76, beating the $1.66 estimate, on revenue of $22.8 billion vs. $21.84 billion expected
• Revenue grew 7.7% year-over-year from $21.2 billion in Q2 2025
• UPS raised full-year 2026 adjusted EPS guidance to ~$7.22 and revenue outlook to ~$91.2 billion
• The stock rose around 1.8% in premarket trading following the report
• CEO Carol Tomé said the quarter marked “an expected and significant shift” in performance

UPS stock jumped roughly 1.8% in premarket trading Tuesday after the company posted a stronger-than-expected second quarter, with the stock trading at around $114.50.

United Parcel Service, Inc., UPS

Q2 adjusted EPS came in at $1.76, topping the Wall Street estimate of $1.66. Revenue hit $22.8 billion, well above the consensus of $21.84 billion.

A year ago, UPS posted EPS of $1.55 on revenue of $21.2 billion. That puts this quarter’s revenue growth at 7.7% year-over-year.

$UPS Q2’26 EARNINGS HIGHLIGHTS

🔹 Revenue: $22.8B (Est. $21.81B) 🟢
🔹 Adj. EPS: $1.76 (Est. $1.66) 🟢; +14% YoY
🔹 Adj. Oper Margin: 9.2%; +40 bps YoY
🔸 Successfully completed Amazon glide down

Raises FY26 Guide:
🔹 Adj. EPS: ~$7.22 (Est. $7.11) 🟢
🔹 Revenue: ~$91.2B (Est.…

— Wall St Engine (@wallstengine) July 28, 2026

CEO Carol Tomé credited UPS employees for their work over the past 18 months as the company completed its Amazon volume reduction and network overhaul. She said the results marked “an expected and significant shift” in performance.

Coming into Tuesday, UPS stock was up about 14% this year at just under $113 a share. That’s still well off the post-COVID highs above $210.

The U.S. Domestic segment brought in $14.93 billion in revenue, up 6.0% year-over-year. Revenue per piece rose 9.3%.

The International segment did even better, with revenue up 12.5% to $5.04 billion. Revenue per piece jumped 18.9%, with an operating margin of 12.4%.

Supply Chain Solutions revenue rose 7.8% to $2.86 billion, driven by growth in forwarding and logistics.

Full-Year Guidance Gets a Lift

UPS raised its full-year 2026 adjusted EPS guidance to approximately $7.22, above the analyst consensus of $7.13.

The revenue outlook was bumped to approximately $91.2 billion, up from prior guidance of $89.7 billion and above the consensus of $90.38 billion.

Adjusted operating profit guidance was raised to approximately $8.65 billion, compared to the prior target of roughly $8.6 billion.

Consolidated adjusted operating profit for the quarter reached $2.1 billion, with an adjusted operating margin of 9.2%.

It’s been a rough few years. Annual revenue peaked above $100 billion in 2022 and fell to $88.7 billion in 2025. The Amazon wind-down added pressure on top of wage inflation and a softer parcel market.

What Analysts Are Saying

Bernstein analyst David Vernon had previewed the quarter as “solid,” saying UPS should be at or near the end of its major headwinds.

Vernon sees “upward pressure” on earnings estimates heading into 2027. He rates UPS a Buy with a $133 price target.

Wall Street currently projects operating profit to grow to $10 billion by 2028, a level not seen since 2023.

UPS stock is currently trading at roughly 15 times forward earnings, down from about 17 times five years ago.

The company said full-year adjusted operating profit is now expected to reach approximately $8.65 billion.

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