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UPS Raises 2026 Revenue Outlook; Sees Flat Quarterly Domestic Revenue Amid Amazon Glide Down Impact
United Parcel Service (UPS) lifted its full-year revenue outlook on Tuesday after delivering second-quarter results above Wall Street's estimates, although the company expects domestic revenue in the ongoing period to be flat reflecting the impact of gliding down its operations with Amazon.com (AMZN).The package delivery giant now anticipates revenue of about $91.2 billion for 2026, up from its previous projection of $89.7 billion. The current consensus on FactSet is for $90.43 billion. Adjusted earnings are pegged at roughly $7.22 per share for the current year, compared with the Street's view for $7.10."Given our strong first half results, which exceeded our expectations, we are increasing our full-year 2026 outlook," Chief Financial Officer Brian Dykes said during an earnings call, according to a FactSet transcript.For the third quarter, UPS expects revenue in its US domestic segment to be flat on an annual basis, reflecting a "seasonal decline, as well as the impact of this year's Amazon glide down," according to Dykes. The division's average daily volume is forecast to decline by mid-single-digits, the CFO added. In the previous quarter, the business saw a 6% increase in revenue to $14.93 billion.In January, UPS announced plans to slash its workforce by up to 30,000 positions related to a planned reduction in Amazon's deliveries in its network. The glide down and related network reconfiguration efforts also included the reduction of about 80% of UPS drivers through voluntary buyouts in the second quarter, Dykes said on the Tuesday call."We are seeing significant value from these efforts as well as from our broader network reconfiguration and efficiency reimagined initiatives," according to Dykes. "As a result, we still expect to deliver approximately $3 billion in related benefits in 2026."Shares of the parcel delivery company dropped 4% in Tuesday trade, although the stock has gained about 9% so far this year.UPS reported adjusted EPS of $1.76 for the quarter ended June, up from $1.55 the year before, topping the average analyst estimate of $1.66. Revenue improved 7.6% to $22.83 billion, surpassing the Street's view for $21.86 billion."Our second-quarter results marked an expected and significant shift in our performance and we delivered both consolidated revenue and non-GAAP adjusted operating profit growth," Chief Executive Carol Tome said in the earnings release.Revenue in the international segment advanced 13% to $5.04 billion, while supply chain solutions grew 7.8% to $2.86 billion.Last month, rival FedEx (FDX) issued a downbeat calendar-year earnings outlook for 2026, even though it recorded an unexpected annual increase in its fiscal fourth-quarter bottom line.Price: $107.35, Change: $-5.60, Percent Change: -4.96%
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