UPS Lifts 2026 Outlook on Q2 Revenue and Non-GAAP Profit Gains

summarizeSummary

UPS posted Q2 2026 revenue of $22.8B (+7.6% YoY) and non-GAAP adjusted diluted EPS of $1.76, beating expectations and raising full-year guidance across revenue, operating profit, and EPS.

check_boxKey Events · Earnings and Guidance · UPS

• Q2 Revenue and Non-GAAP Profit Growth

  Consolidated revenue rose 7.6% to $22.8B, while non-GAAP adjusted operating profit climbed 12% to $2.1B. Non-GAAP adjusted diluted EPS reached $1.76, up from $1.55 a year ago.

• Full-Year Guidance Raised

  Reflecting strong second-half momentum, UPS raised its 2026 outlook: revenue to ~$91.2B, non-GAAP adjusted operating profit to ~$8.65B, and non-GAAP adjusted diluted EPS to ~$7.22.

• Transformation Charges Weigh on GAAP Results

  GAAP results included $1.2B in after-tax transformation charges ($1.05 per share), primarily from the Driver Choice Program workforce reductions, causing GAAP diluted EPS to fall to $0.71 from $1.51.

• U.S. Domestic Segment Pricing Strength

  U.S. Domestic revenue increased 6.0% on a 9.3% increase in revenue per piece, offsetting a 3.3% volume decline. Non-GAAP adjusted operating margin expanded to 8.0% from 7.0%.

auto_awesomeAnalysis · UPS · Energy & Transportation

A strong second quarter saw consolidated revenue climb 7.6% to $22.8 billion and non-GAAP adjusted operating profit rise 12% to $2.1 billion, fueled by pricing improvements across all segments. Management responded by raising full-year guidance for revenue, non-GAAP adjusted operating profit, and non-GAAP adjusted diluted EPS, signaling confidence in the second half. While GAAP results were pressured by $1.2 billion in transformation charges tied to the Driver Choice Program, the underlying business momentum and upgraded outlook are the key takeaways for investors.