UPS (UPS) reported earnings 30 days ago. What's next for the stock?
Verizon, Altria and United Parcel Service are among the companies with dividend yields that match or beat bonds and also boast solid earnings prospects.
UPS' $2B-plus global logistics investment targets faster, more reliable networks as trade uncertainty and supply chain disruptions persist.
UPS plans to invest a total of more than $2 billion into its international, healthcare and supply chain businesses between 2024 and 2028, an executive told CNBC in a report published Monday (Aug. 24).
UPS told CNBC exclusively that the company is investing more than $2 billion into its international, healthcare and supply chain businesses. The investments began in 2024 and continue through 2028, according to UPS, but haven't been previously quantified.
A package crossing into the United States used to depend on a person to review it, classify and catch any errors, slowing the process with days-long delays at the border. Sorting more packages faster is a warehouse problem.
UPS is targeting about $3 billion in 2026 network savings as stronger pricing, higher cash flow and cost cuts support margins despite weaker package volumes.
UPS remains a compelling value and income play, offering a 6.3% yield and trading at a forward P/E of 14.5. A strategic shift away from low-margin Amazon volume has improved operating margin, with Q2 2026 revenue up 7.6% and profit up 12% YoY. Automation and healthcare logistics expansion are driving higher margins, with 68.5% of U.S. volume now automated and healthcare revenue exceeding $3 billion for two quarters.
UPS raises its 2026 outlook after completing its Amazon volume reset, as pricing and premium growth support second-half margin expansion.
UPS remains a hold as restructuring and cost-cutting have yet to restore historical margins, despite Q2 top- and bottom-line beats. Q2 saw revenue of $22.8B and adjusted EPS of $1.76, but incremental revenue is not translating into meaningful profit growth. Shedding the Amazon contract and Driver Choice Program are positives, yet cost per piece inflation and weak margin leverage persist.
United Parcel Service NYSE: UPS raised its full-year 2026 outlook after reporting second-quarter revenue and operating-profit growth, citing the completion of its planned reduction of lower-yielding Amazon volume, network reconfiguration efforts and gains in higher-value shipping segments.
United Parcel Service beats Q2 earnings estimates as pricing, segment growth and network efficiencies lift revenues, margins and full-year guidance.