United Parcel Service Inc - Class B
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −1.37%.
Did UPS Beat Earnings? Q4 2025 Results
United Parcel Service closed out Q4 2025 with a stronger-than-expected earnings performance, posting adjusted diluted EPS of $2.38 against a consensus estimate of $2.20, an 8.18% beat, even as the company's deliberate strategic retreat from its largest customer continued to weigh on the top line. Consolidated revenue of $24.48 billion edged 1.79% above analyst expectations but still marked a 3.0% decline from the year-ago period, with U.S. Domestic Package volume losses tied to the ongoing Amazon volume reduction more than offsetting an 8.3% gain in revenue per piece. The quarter was also shaped by the complete retirement of UPS's MD-11 aircraft fleet, which triggered a $182 million pre-tax impairment charge and contributed to GAAP diluted EPS of $2.10. Cost discipline remained central to the story, as the company's Network Reconfiguration and Efficiency Reimagined programs, which included <a href="https://247wallst.com/investing/2025/12/22/one-shipping-leader-grew-revenue-13-9-while-its-rival-cut-48000-jobs/">cutting nearly 48,000 positions</a>, delivered roughly $3.50 billion in savings for the full year. Looking ahead, UPS guided for 2026 revenue of approximately $89.70 billion, with CEO Carol Tomé calling the year an inflection point as the Amazon glide-down concludes.
- Revenue per piece grew 8.3% in U.S. Domestic segment, reflecting revenue quality strategy
- International revenue per piece increased 7.1%
- Consolidated revenue per piece grew 8.6% to $14.60
- Network Reconfiguration and Efficiency Reimagined programs delivered approximately $3.5 billion in year-over-year cost savings in 2025
- Operational workforce reduced by approximately 48,000 positions and 93 facilities closed
- Best-in-class peak season service for the eighth consecutive year
- Purchased transportation costs declined 22.2% in Q4
“I want to thank UPSers across the globe for their tireless commitment to serving our customers as we delivered best-in-class service during peak for the eighth year in a row and outperformed our financial expectations in the fourth quarter.”
United Parcel Service CEO, on the earnings call
Forward Guidance & Outlook
For full year 2026, UPS expects consolidated revenue of approximately $89.7 billion and non-GAAP adjusted operating margin of approximately 9.6%. Capital expenditures are planned at about $3.0 billion, with dividend payments of around $5.4 billion (subject to board approval). The effective tax rate is expected to be approximately 23.0%. The company expects approximately $3 billion in savings from its Network Reconfiguration and Efficiency Reimagined programs in 2026. CEO Carol Tomé described 2026 as an 'inflection point' following the completion of the Amazon volume glide-down, positioning UPS for growth and sustained margin expansion.
UPS YoY Financials
UPS Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.