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Sentiment · FY2026 Q2
UPS reported Q1 consolidated revenue of $21.2B with adjusted EPS of $1.07 as the Amazon volume glide-down neared completion and transitional cost pressures from driver buyouts and network reconfiguration weighed on margins. FY2026 guidance was reaffirmed at approximately $89.7B revenue and 9.6% operating margin, with premium mix shift driving revenue quality as revenue per piece grew 6.5%. Healthcare revenue hit a record quarter and Supply Chain Solutions doubled profitability, though international trade lane disruptions continued and the broader margin recovery was still back-half loaded.
Cost Pressure | Margin | Demand | Competitive Dynamics | Trade Tariffs | Capex Investment | Pricing | Macroeconomic | |
|---|---|---|---|---|---|---|---|---|
| 2024Q4 | 2 | 4 | 5 | 8 | 1 | 2 | ||
| 2025Q1 | 5 | 3 | 4 | 2 | 1 | 2 | ||
| 2025Q2 | 4 | 3 | 5 | 2 | 3 | 2 | ||
| 2025Q3 | 8 | 4 | 3 | 1 | 3 | 1 | 1 | 1 |
| 2025Q4 | 7 | 5 | 3 | 2 | 1 | 3 | 1 | 1 |
| 2026Q1 | 5 | 7 | 3 | 4 | 4 | 1 | 2 | 2 |
| '24Q4 | '25Q1 | '25Q2 | '25Q3 | '25Q4 | '26Q1 | |
|---|---|---|---|---|---|---|
| Cost Pressure | 2 | 5 | 4 | 8 | 7 | 5 |
| Margin | 4 | 3 | 3 | 4 | 5 | 7 |
| Demand | 5 | 4 | 5 | 3 | 3 | 3 |
| Competitive Dynamics | 8 | 2 | 1 | 2 | 4 | |
| Trade Tariffs | 2 | 3 | 3 | 1 | 4 | |
| Capex Investment | 1 | 2 | 1 | 3 | 1 | |
| Pricing | 2 | 1 | 1 | 1 | 2 | |
| Macroeconomic | 2 | 1 | 1 | 2 |
| Quarter | Revenue | Rev YoY | EPS | EPS YoY | Op margin | Net margin | FCF |
|---|---|---|---|---|---|---|---|
| FY2024 Q4 | $25.24B | +1.5% | $2.02 | +8.0% | 11.8% | 6.8% | $2.22B |
| FY2025 Q1 | $21.55B | -0.5% | $1.40 | +7.7% | 7.7% | 5.5% | $1.44B |
| FY2025 Q2 | $21.22B | -2.5% | $1.51 | -7.9% | 8.6% | 6.0% | $-775M |
| FY2025 Q3 | $21.41B | -3.6% | $1.55 | -13.9% | 8.4% | 6.1% | $1.51B |
| FY2025 Q4 | $24.48B | -3.0% | $2.10 | +4.0% | 10.5% | 7.3% | $2.59B |
| FY2026 Q1 | $21.20B | -1.6% | $1.02 | -27.1% | 6.0% | 4.1% | $1.19B |
| FY2026 Q2 | $22.83B | +7.6% | $0.71 | -53.0% | 4.1% | 2.6% | $166M |
Management’s own words, often on a non-GAAP, constant-currency, or adjusted basis — so these can differ from the GAAP figures above (e.g. constant-currency revenue growth excludes currency swings).
| Analyst | Firm | Questions (Challenge)Percentage of questions scored as challenging — where the analyst pushed back, pressed for specifics, or questioned management's assumptions. |
|---|---|---|
| Ken Hoexter | Bank of America | 7 (29%) |
| Chris Wetherbee | Wells Fargo | 7 (14%) |
| Jordan Alliger | Goldman Sachs |
| Bruce Chan | Stifel | 7 (0%) |
| Scott Group | Wolfe Research | 6 (17%) |
| Brian Ossenbeck | JPMorgan | 6 (17%) |
| Ariel Rosa | Citigroup | 6 (17%) |
| David Vernon | Bernstein | 6 (17%) |
| Tom Wadewitz | UBS | 6 (17%) |
| Ravi Shanker | Morgan Stanley | 6 (33%) |
| Firm | Analysts | Questions (Challenge)Percentage of questions scored as challenging — where the analyst pushed back, pressed for specifics, or questioned management's assumptions. |
|---|---|---|
| Citigroup | 2 | 8 (13%) |
| Wells Fargo | 2 | 8 (13%) |
| Wolfe Research | 2 | 7 (14%) |
| Bank of America | 1 | 7 (29%) |
| Bernstein | 2 | 7 (29%) |
| Goldman Sachs | 1 | 7 (0%) |
| Stifel | 1 | 7 (0%) |
| Morgan Stanley | 1 | 6 (33%) |
What UPS and other companies said about each other on FY2026 Q1 earnings calls — extracted verbatim from public transcripts. Mentions from the newest quarter are a Pro feature.
“we still expect revenue to be up high single digits, which includes revenue from our Andlauer acquisition”
UPS's Andlauer acquisition contributes to expected high-single-digit Supply Chain Solutions revenue growth, reinforcing UPS's push into premium healthcare logistics.
“we shifted a portion of our Ground Saver volume back to the USPS for last mile delivery.”
UPS is outsourcing a portion of its Ground Saver last-mile delivery to USPS, tendering roughly 977,000 pieces per day in Q1 and ramping toward ~1.5 million, to improve delivery density and lower cost per piece.
“at the end of the first quarter, Amazon made up 8.8% of our total revenue. That's down from, it was north of 13%, not very long ago.”
UPS's deliberate Amazon glidedown has cut Amazon to 8.8% of revenue from over 13%, though UPS expects Amazon revenue to grow each quarter and plans to keep the higher-value returns relationship.
| Company | Score | Trend | Rev YoY |
|---|---|---|---|
UPS United Parcel Service | 3 | -1.6% | |
| CHRW C.H. Robinson | 4 | -0.8% | |
| EXPD Expeditors International | 7 | +4.4% | |
| FDX FedEx | 9 | +8.3% | |
| JBHT J.B. Hunt | 7 | +4.6% |