United Parcel Service, Inc. remains a Strong Buy as it executes a strategic turnaround focused on profitability and operational efficiency. UPS is successfully managing the Amazon volume glide-down, shifting toward higher-margin B2B and Healthcare shipments, and expanding automation. 2026 is positioned as an inflection point, with cost savings, capex reductions, and a targeted $20B in annual healthcare revenue driving upside.
UPS also slashed a whopping 48,000 jobs last year, including 34,000 operational roles and 14,000 in management.
United Parcel Service tops Q4 earnings and revenue estimates despite year-over-year declines, and issues upbeat 2026 sales guidance above expectations.
UPS aims to cut up to 30,000 operational jobs by 2026 as part of major transformation strategy to optimize network operations and boost productivity.
UPS is no longer optimizing for dominance by volume. And it's by design.
While the top- and bottom-line numbers for UPS (UPS) give a sense of how the business performed in the quarter ended December 2025, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.
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.