UNITED PARCEL SERVICE INC (UPS) Form 10-Q — Aug 5, 2026

$UPSForm 10-QFiled Aug 5, 2026, 3:48 PM ET0001628280-26-053249Original filing

UPS reported second quarter 2026 revenue of $22.8 billion, up 7.6% year over year, but operating profit fell 49.0% to $930 million and net income dropped 52.9% to $604 million, with diluted EPS of $0.71 versus $1.51 a year ago. Operating margin compressed 450 basis points to 4.1%. The profit decline was driven by $1,172 million of transformation strategy costs in the quarter, mostly about $1.1 billion of separation costs from the voluntary Driver Choice Program, plus higher USPS fees from outsourcing Ground Saver, elevated fuel costs tied to the Middle East conflict, and third-party aircraft lease expense following the MD-11 fleet retirement.

Key figures

Eps: 0.71
Revenue: 22834000000
Net Income: 604000000
Total Debt: $23,850 million long-term debt and finance leases plus $634 million current maturities as of June 30, 2026
Revenue Yoy: +7.6% Q2 YoY; +3.0% H1 YoY
Total Assets: 71267000000
Cash Position: 4653000000
Shares Outstanding: 101,432,177 Class A and 749,349,405 Class B shares at July 17, 2026
Capex h1 2026: $1,724 million
Dividends paid h1 2026: $2,708 million ($1.64/share quarterly)
Share buybacks h1 2026: $0 (vs $1.0 billion in H1 2025)
Avg revenue per piece q2: $15.96, up 11.3% YoY
Buildings closed h1 2026: 45 closed (44 permanently)
Operating margin q2 2026: 4.1% vs 8.6% prior year (-450 bps)
Operating profit q2 2026: $930 million vs $1,822 million prior year (-49.0%)
Avg daily package volume q2: 19,006 thousand, down 3.7% YoY
Operating cash flow h1 2026: $3,083 million
Ieepa tariff refunds approved: ~$500 million filed and CBP-approved; ~$200 million received; ~$300 million in accounts receivable
Driver choice separation costs: ~$1.1 billion in H1 2026
Louisville accident contingency: $104 million environmental remediation
Aircraft lease parent guarantees: ~$1.8 billion for five new aircraft leases
Expected fy2026 program benefits: ~$3 billion from Network Reconfiguration and Efficiency Reimagined
Fuel surcharge revenue increase q2: ~$575 million domestic; ~$429 million international
Expected fy2026 transformation costs: $1.3-$1.5 billion, of which $1.1 billion is Driver Choice Program
Non gaap adjusted diluted eps h1 2026: 2.82
Non gaap adjusted diluted eps q2 2026: 1.76
Transformation strategy costs q2 2026: $1,172 million ($1,227 million H1)

Price after filing

1 day: -4.2%7 days: -3.5%30 days: -3.9%

Close on the filing date to close N calendar days later (from $107.70). Historical, not a forecast.

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