UPS beat second-quarter earnings expectations and raised its full-year guidance on July 28, signaling strong momentum as the package delivery giant completes its strategic pivot away from Amazon. The company reported consolidated revenues of $22.8 billion, surpassing analyst estimates of approximately $21.84 billion, with non-GAAP adjusted earnings per share of $1.76, ahead of the consensus forecast of $1.66.
CEO Carol Tomé described the results as marking “an expected and significant shift in our performance” after the company successfully completed its Amazon volume reduction and network reconfiguration initiatives. For the full year 2026, UPS raised its consolidated revenue outlook to approximately $91.2 billion, non-GAAP adjusted operating profit guidance to approximately $8.65 billion, and non-GAAP adjusted diluted EPS guidance to approximately $7.22.
The earnings beat reflects the payoff from UPS’s transformation strategy, which accelerated after the company reached an agreement in 2025 to reduce Amazon volumes by more than 50 percent by mid-2026. In the first half of 2026, UPS achieved approximately $1.2 billion in program benefits from its network reconfiguration and efficiency initiatives, with expectations for approximately $3 billion in full-year 2026 benefits.
UPS’s domestic segment revenue grew 6.0 percent year-over-year to $14.9 billion, driven by a 9.3 percent increase in revenue per piece—a key metric showing the company’s ability to generate higher margins from remaining customers. The international segment posted even stronger performance, with revenue climbing 12.5 percent to $5.0 billion, buoyed by an 18.9 percent increase in revenue per piece. Supply Chain Solutions revenue rose 7.8 percent to $2.9 billion, reflecting growth in forwarding and logistics, including healthcare services.
The results mark a turning point after UPS endured significant headwinds in 2025 and early 2026. In January, the company announced plans to cut up to 30,000 operational positions in 2026 as part of its broader transformation, following the elimination of approximately 48,000 jobs in 2025. While these workforce reductions reflect the lower Amazon volume, the company has emphasized that the shift positions it to serve more profitable customer segments and improve overall profitability. The non-GAAP adjusted operating margin for the quarter reached 9.2 percent, demonstrating the efficiency gains from the reconfigured network.
Wall Street has watched UPS closely as a bellwether for economic health and logistics demand. The guidance raise suggests management confidence that the worst of the Amazon transition is behind the company and that its cost-reduction initiatives are delivering measurable results. The company also confirmed expected capital expenditures of about $3.0 billion and dividend payments of around $5.4 billion for the full year, subject to board approval.
Sources
- UPS Investor Relations — Q2 2026 earnings announcement with consolidated revenue, EPS, and full-year guidance figures
- UPS Press Release — CEO Carol Tomé’s statement on performance shift and Amazon glide-down completion
- AlphaStreet — Pre-earnings analyst consensus estimates for Q2 2026 EPS and revenue
- SeekingAlpha — Details on Amazon volume reduction agreement and network reconfiguration cost savings targets
- The Hill — 2026 job cut plans tied to Amazon partnership reduction
