United Parcel Service (UPS) Stock Jumps on Earnings Beat and Revenue Outlook

TLDR

• UPS forecasts 2026 revenue of $89.7 billion, up from $88.7 billion in 2025, beating analyst expectations of $88.05 billion
• Fourth-quarter profit reached $1.79 billion ($2.10 per share), up from $1.72 billion ($2.01 per share) year-over-year
• The company completed retirement of its MD-11 aircraft fleet during Q4, taking a $137 million write-off
• UPS reduced workforce by 48,000 jobs last year and closed 93 facilities as part of restructuring efforts
• Stock jumped 3.7% in premarket trading following the earnings announcement

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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.

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.

Strategic Shift Away from Amazon

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.

Looking Ahead to 2026

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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