United Parcel Service Inc (NYSE:UPS) reported fourth-quarter revenue and earnings above Wall Street expectations on Tuesday, buoyed by strong international performance even as domestic package demand softened. The logistics giant posted revenue of $24.5 billion for the quarter, topping analysts' estimate of $24 billion, despite a 3% year-over-year decline.
UPS announced it will eliminate an additional 30,000 operational jobs as it winds down its partnership with Amazon. The cuts come on the back of 48,000 eliminated jobs in 2025.
United Parcel Service (UPS) came out with quarterly earnings of $2.38 per share, beating the Zacks Consensus Estimate of $2.22 per share. This compares to earnings of $2.75 per share a year ago.
UPS trades on a 30% discount to the S&P 500 on a price-to-earnings basis with a dividend of roughly 6%.
United Parcel Service posted higher profit in the fourth quarter despite a charge tied to the retirement of one of its aircraft fleets, and as the company guided for higher revenue in the coming year.
United Parcel Service forecast higher 2026 revenue on Tuesday, as it continues to reduce low-margin deliveries for its biggest customer, Amazon, and shifts toward higher-paying shipments.
In the most recent trading session, United Parcel Service (UPS) closed at $107.98, indicating a -1.21% shift from the previous trading day.
Besides Wall Street's top-and-bottom-line estimates for UPS (UPS), review projections for some of its key metrics to gain a deeper understanding of how the company might have fared during the quarter ended December 2025.
United Parcel Service (UPS) reached $108.48 at the closing of the latest trading day, reflecting a +1.82% change compared to its last close.
United Parcel Service eyes a Q4 earnings beat despite weak volumes, but near-term headwinds may cloud its recovery story.
United Parcel Service remains resilient despite softer demand, leveraging strategic B2B focus, pricing power, and operational efficiencies. UPS's valuation is attractive, with a current P/E of 16.52x and a target price range of $113–$149, supported by robust fundamentals. Strong liquidity, prudent debt management, and contractual pricing mechanisms underpin UPS's dividend sustainability and operational stability.
UPS trades at a discount with a 6.1% yield and strong buybacks, but volume and margin headwinds linger.