United Parcel Service (NYSE:UPS) Announces Earnings Results, Beats Expectations By $0.18 EPS

United Parcel Service (NYSE:UPS) released its quarterly earnings data on Tuesday. The transportation company reported $2.38 earnings per share for the quarter, topping analysts’ consensus estimates of $2.20 by $0.18, Zacks reports. United Parcel Service had a net margin of 6.15% and a return on equity of 40.07%. The firm had revenue of $24.50 billion for the quarter, compared to analyst estimates of $23.91 billion. During the same quarter in the prior year, the business earned $2.75 earnings per share. The business’s quarterly revenue was down 3.2% compared to the same quarter last year.

Here are the key takeaways from United Parcel Service’s conference call:

• UPS reported better-than-expected results for Q4 and full-year 2025 with consolidated Q4 revenue of $24.5B, Q4 operating margin of 11.8%, and full-year revenue of $88.7B with a 9.8% operating margin.
• Management accelerated its network reconfiguration and Amazon glide down (reduced Amazon volume by ~1M pieces/day in 2025 and plans another ~1M in 2026), saying they delivered $3.5B of savings in 2025 and are targeting an additional $3B of glide-down savings.
• Near-term margin pressure is expected in 1H26 as UPS completes the Amazon glide down, transitions GroundSaver last‑mile delivery to the USPS, and absorbs costs from the MD-11 retirement and lease replacements; full-year 2026 guidance calls for consolidated revenue of ~$89.7B, operating margin ~9.6%, and EPS roughly flat to 2025.
• UPS took a $137M after‑tax write-off for the MD‑11 fleet in Q4, grounded the aircraft, and plans to replace capacity with ~18 Boeing 767 deliveries over ~15 months (expecting lower lease expense as new aircraft enter service).
• UPS highlighted growth in strategic, higher‑value businesses — global healthcare revenue of $11.2B, Digital Access Program revenue of $4.1B with SMB penetration at 31.8%, and UPS Digital/adjacent services growing ~24% year‑over‑year — supporting the company’s shift to higher-margin mix.

United Parcel Service Price Performance

UPS traded up $3.79 during trading on Tuesday, hitting $110.76. 4,975,756 shares of the stock traded hands, compared to its average volume of 5,086,374. United Parcel Service has a twelve month low of $82.00 and a twelve month high of $136.99. The company has a debt-to-equity ratio of 1.50, a current ratio of 1.30 and a quick ratio of 1.30. The business has a 50 day moving average price of $100.72 and a 200 day moving average price of $93.36. The company has a market cap of $93.97 billion, a price-to-earnings ratio of 17.07, a PEG ratio of 2.33 and a beta of 1.11.

United Parcel Service Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, December 4th. Investors of record on Monday, November 17th were paid a $1.64 dividend. This represents a $6.56 dividend on an annualized basis and a yield of 5.9%. The ex-dividend date of this dividend was Monday, November 17th. United Parcel Service’s dividend payout ratio (DPR) is 101.39%.

Institutional Investors Weigh In On United Parcel Service

Several hedge funds have recently modified their holdings of the company. Brighton Jones LLC raised its holdings in shares of United Parcel Service by 63.8% during the fourth quarter. Brighton Jones LLC now owns 12,126 shares of the transportation company’s stock valued at $1,529,000 after purchasing an additional 4,723 shares during the period. Sivia Capital Partners LLC acquired a new stake in United Parcel Service in the 2nd quarter valued at $277,000. Triumph Capital Management acquired a new position in United Parcel Service during the third quarter worth $396,000. Legacy Advisors LLC acquired a new position in shares of United Parcel Service during the third quarter valued at about $414,000. Finally, Quadcap Wealth Management LLC lifted its position in United Parcel Service by 10.2% in the 3rd quarter. Quadcap Wealth Management LLC now owns 5,083 shares of the transportation company’s stock valued at $425,000 after acquiring an additional 470 shares in the last quarter. Institutional investors and hedge funds own 60.26% of the company’s stock.

Analyst Upgrades and Downgrades

A number of research analysts recently issued reports on UPS shares. Weiss Ratings reiterated a “sell (d+)” rating on shares of United Parcel Service in a report on Wednesday, January 21st. Sanford C. Bernstein upped their price target on United Parcel Service from $122.00 to $125.00 and gave the stock an “outperform” rating in a report on Friday, January 9th. Wall Street Zen raised United Parcel Service from a “sell” rating to a “hold” rating in a report on Saturday, November 1st. Citigroup raised their target price on shares of United Parcel Service from $120.00 to $126.00 and gave the stock a “buy” rating in a report on Thursday, January 8th. Finally, Susquehanna lifted their price target on United Parcel Service from $105.00 to $115.00 and gave the company a “neutral” rating in a report on Tuesday, January 20th. One analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating, fifteen have assigned a Hold rating and four have issued a Sell rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of “Hold” and a consensus target price of $111.84.

More United Parcel Service News

Here are the key news stories impacting United Parcel Service this week:

• Positive Sentiment: Q4 results: UPS posted adjusted EPS of $2.38 (beat $2.22 consensus) and revenue of $24.5B (beat ~$23.9B), driven by higher revenue per package and international strength — evidence of improving business quality. UPS Q4 earnings and call
• Positive Sentiment: 2026 guidance raised: UPS guided to roughly $89.7B in 2026 revenue (above consensus ~$87.9B), signaling the company expects growth next year as it shifts mix toward higher‑margin shipments. UPS forecasts higher 2026 revenue
• Positive Sentiment: Solid cash returns & valuation: Analysts and commentaries point to a ~6% dividend yield and a P/E discount to the S&P 500 — making UPS relatively attractive for income and value investors if operational recovery continues. MarketWatch on UPS valuation and dividend
• Positive Sentiment: Analyst tone: Evercore ISI recently raised its price target (to $113) citing cost initiatives and expecting EPS support from these moves — a sign some sell‑side analysts are becoming incrementally constructive. Evercore ISI note
• Neutral Sentiment: GAAP vs. adjusted: GAAP EPS was impacted by charges (aircraft retirement, other items); adjusted EPS beat consensus. Investors should watch how one‑time charges versus sustainable margin gains evolve. BusinessWire press release
• Negative Sentiment: Workforce reductions: UPS said it will cut an additional ~30,000 operational jobs as it continues winding down low‑margin volume from Amazon (on top of ~48,000 cuts in 2025). The scale of cuts underscores execution risk, potential service disruption, and reliance on returns from cost reductions. UPS to cut additional 30,000 jobs

About United Parcel Service

United Parcel Service (NYSE: UPS) is a global package delivery and supply chain management company that provides a broad range of transportation, logistics and e-commerce services. Its core business centers on small-package delivery and last-mile distribution for business and individual customers, supported by a network of ground transportation, air cargo operations (UPS Airlines) and sorting facilities. In addition to parcel delivery, UPS offers freight transportation, contract logistics, warehousing, customs brokerage and reverse-logistics solutions designed to support domestic and international commerce.

The company traces its roots to 1907 when it began as a small messenger service in the United States and later evolved into the United Parcel Service.