UPS lifts 2026 outlook after Q2 beat

United Parcel Service (UPS) reported results for the quarter ended June 30, 2026 that topped earnings and revenue expectations. Consolidated revenue came in at about $22.8 billion, while adjusted earnings per share were $1.76. Management highlighted that the quarter marked a significant shift in performance, with both consolidated revenue and non-GAAP adjusted operating profit returning to growth.

Within the business, U.S. domestic revenue grew 6%, supported by higher pricing. Revenue per piece in the U.S. domestic segment rose 9.3%, reflecting a focus on more profitable shipments. The company reported an adjusted operating margin of 8% in its U.S. domestic segment and 12.4% in its international segment for the quarter.

Building on the stronger quarterly performance, UPS raised its 2026 consolidated revenue guidance to about $91.2 billion, compared with a prior forecast of $89.7 billion. The new outlook is also above the $90.4 billion average of analyst estimates cited in the raw results. At the same time, the company increased its full-year adjusted diluted earnings-per-share guidance to approximately $7.22 for 2026.

Management stated that UPS entered the second half of the year with strong momentum and is also raising guidance for non-GAAP adjusted operating profit. The improved forecasts reflect confidence in the company’s pricing, mix, and cost actions as it executes on its strategic priorities.

UPS said it has completed its planned reduction of Amazon (AMZN) volumes, often referred to as the Amazon (AMZN) glide down. This step is part of a broader network reconfiguration aimed at shifting away from lower-margin e-commerce volume toward more profitable package flows. The company emphasized that this mix shift is supporting higher revenue per piece and margin improvement.

The ongoing network reconfiguration has already generated roughly $1.2 billion of program benefits year-to-date. UPS reiterated that it remains on track to achieve $3 billion in cost savings by 2026 through these initiatives. Management framed the cost savings and volume mix changes as key drivers behind the enhanced outlook for revenue, profit, and earnings per share.