United Parcel Service (UPS) Q4 2025 Earnings
How Did UPS Stock React to Q4 2025 Earnings?
S&P 500 over the same 30 days: −1.37%.
Did UPS Beat Earnings? Q4 2025 Results
Yes. United Parcel Service reported Q4 2025 earnings of $2.38 a share on Jan 27, 2026, beating the $2.20 consensus estimate by 8.1%. Revenue was $24.5B against a $24.0B estimate.
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
What Was United Parcel Service's Outlook in Q4 2025?
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
| Metric | Q4 2025 | Q4 2024 | Year over year |
|---|---|---|---|
| Revenue | $24.5B | $25.2B | −3.0% |
| Operating Income | $2.6B | $3.0B | −13.8% |
| Net Income | $1.8B | $1.7B | +4.1% |
UPS Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.