UPS beat Q2 revenue, adjusted EPS estimates, raises FY outlook

Overview

• US logistics giant's Q2 revenue rose, beating analyst expectations

• Adjusted EPS for Q2 beat analyst expectations

• Company raised full-year 2026 revenue and adjusted EPS guidance

Outlook

• UPS raises 2026 revenue outlook to about $91.2 bln

• Company expects 2026 non-GAAP adj operating profit about $8.65 bln

• UPS now sees 2026 non-GAAP adj diluted EPS at about $7.22

Result Drivers

• HIGHER REVENUE PER PIECE - Co said U.S. Domestic segment revenue rose 6.0% and International segment revenue rose 12.5%, both driven by increases in revenue per piece

• FORWARDING AND LOGISTICS GROWTH - Supply Chain Solutions revenue up 7.8%, primarily due to growth in forwarding and logistics, including healthcare

• NETWORK RECONFIGURATION INITIATIVES - Co said completion of Amazon glide down and network reconfiguration contributed to improved performance, per CEO Carol Tomé

Company press release: ID:nBwbMQ1jPa

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 15 "strong buy" or "buy", 12 "hold" and 4 "sell" or "strong sell"

• The average consensus recommendation for the courier, postal, air freight land-based logistics peer group is "buy"

• Wall Street's median 12-month price target for United Parcel Service Inc is $115.00, about 1.8% above its July 27 closing price of $112.95

• The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 14 three months ago

Reuters Recommended Reads

• July 27 - Canada's TFI International Q2 adjusted profit beats estimates on growth in all businesses

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• July 27 - Monaco's Costamare Q2 voyage revenue falls 4.8% on lower charter rates

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)