UPS (UPS) investor relations material

Executive summary

• Achieved Q2 2026 consolidated revenue of $22.8B, up 7.6% year-over-year, with non-GAAP adjusted operating profit of $2.1B, and margin expansion across all segments.

• Transformation initiatives, including Amazon glide down and network reconfiguration, eliminated 2 million pieces/day of lower-quality volume, yielding $1.2B in benefits in H1 2026 and targeting $3B for the full year.

• Deployed RFID and AI technologies across U.S. operations, enhancing efficiency, visibility, and customer experience.

• All business segments contributed to growth, with U.S. Domestic operating profit up over 20% year-over-year.

• Non-GAAP adjusted diluted EPS rose to $1.76, while GAAP diluted EPS was $0.71, reflecting significant transformation charges.

Financial highlights

• Q2 2026 consolidated revenue was $22.8B, up 7.6% year-over-year; non-GAAP adjusted operating profit was $2.1B, and GAAP operating profit was $930M.

• Non-GAAP adjusted operating margin improved to 9.2% from 8.8% year-over-year; diluted EPS was $1.76.

• U.S. Domestic segment revenue grew 6% to $14.9B; operating profit rose 21% to $1.2B; margin at 8%.

• International segment revenue was $5.04B, up 12.5% year-over-year; operating margin 12.4%.

• Supply Chain Solutions revenue was $2.9B, up 7.8%; operating profit $291M, margin 10.2%.

Outlook and guidance

• Raised full-year 2026 consolidated revenue outlook to ~$91.2B and non-GAAP adjusted operating profit to ~$8.65B.

• Diluted EPS guidance lifted to ~$7.22.

• U.S. Domestic full-year revenue expected at ~$60B, operating margin ~7.5%; back half margin ~8.8%.

• International and Supply Chain Solutions segments forecast mid-single to high-single digit revenue growth and operating margins of 10–14%.

• Free cash flow expected at ~$5.5B; $5.4B in dividends planned for 2026; capital expenditures at ~$3B.