United Parcel Service, Inc.
UPS.US Full Coverage
Last updated:
Volume
52W avg
Day Range
52W High
52W Low
Market Cap
Div Yield
Forward P/E
P/B
Headlines
FY2026 Q1
UPS’s Q1 underscores the progress of its network reset, with the Amazon volume glide‑down slated to finish in June and U.S. small‑business volume reaching a record 34.5% share, signaling a shift to higher‑margin revenue. The quarter generated $21.2 billion in revenue and a 6.2% adjusted operating margin, weighed down by roughly $350 million of planned short‑term costs, while the company stays on track for its $3 billion 2026 cost‑out target and guided Q2 U.S. Domestic margin to 7.5%‑8.5%.
Adj. Consolidated Operating Margin
6.2%
-200 bps
Adjusted Diluted EPS
$1.07
-28.2%
U.S. Domestic Adj. Operating Margin
4.0%
-300 bps
Q2 Adj. U.S. Domestic Op. Margin Guidance
7.5% - 8.5%
Introduced
U.S. SMB Volume Penetration
34.5%
+330 bps
What We're Watching
Strategic
Realization of H2 Margin Inflection
📅
Next Quarter / H2 2026
What to Monitor
Q2 U.S. Domestic margin performance relative to the 7.5%-8.5% guided range, and any revisions to management's commentary about the back half of the year representing a "considerably different" performance level.
Why It Matters
This is the most critical proof point for the company's entire network transformation strategy. Meeting or exceeding the Q2 margin guide is essential to validate that the Q1 costs were truly temporary and that the business is on track for structural margin expansion in the second half.
Risk
Impact of Macro Headwinds on Premium Volume
📅
Next Quarter / Ongoing
What to Monitor
Commentary on demand trends in premium segments (SMB, B2B, Healthcare) and whether management observes any volume softness or trade-down attributable to low consumer confidence or high fuel prices.
Why It Matters
Management cited these external risks as the main reason for not raising full-year guidance. Any materialization of these headwinds could pressure high-margin volumes, undermining the positive mix shift and putting the reaffirmed 9.6% consolidated margin target at risk.
Operational
Realized Cost Efficiencies from Transformation
📅
Ongoing
What to Monitor
Updates on U.S. cost per piece (CPP) trends, particularly the spread versus revenue per piece (RPP), and any new metrics on hub productivity or progress towards the 30,000 operational position reduction goal.
Why It Matters
The ability to translate strategic actions like automation and the driver buyout into tangible, sustained productivity gains is crucial for achieving the targeted 50-100 basis point positive spread between RPP and CPP and delivering long-term margin expansion.
Opportunity
Healthcare Segment Growth and Margin Contribution
📅
Ongoing
What to Monitor
The growth rate of the global healthcare portfolio and any commentary on its profitability profile, especially in high-value areas like direct-to-consumer pharma (e.g., GLP-1 drugs).
Why It Matters
Healthcare is a key pillar of the company's strategy to grow in "premium" markets. Sustained, high-margin growth in this segment is essential to offset volume declines elsewhere and prove the viability of the "better not bigger" strategy.
Strategic
International Margin Trajectory and Trade Lane Recovery
📅
Next Quarter / H2 2026
What to Monitor
The Q2 International adjusted operating margin relative to the 13-14% guided range. Commentary on the normalization of the China-to-U.S. trade lane and any observed disruption from the elimination of de minimis in Europe.
Why It Matters
The International segment is a crucial profit contributor. Validating that the Q1 outperformance signals a sustainable recovery in profitable trade lanes—and not just a temporary anomaly—is key to underwriting the long-term goal of "high teens" margins for the segment.
