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United Parcel Service (NYSE: UPS) has announced its fourth-quarter 2025 financial results, surpassing market expectations with a strong performance that highlights its strategic initiatives and sets the stage for an ambitious 2026. The company reported significant earnings per share (EPS) and revenue figures, reflecting its robust operational strategies and market adaptability.
 

UPS Reports Q4 2025 EPS Beat By $0.18

UPS has reported a commendable performance for the fourth quarter of 2025, exceeding Wall Street’s expectations. The company achieved a non-GAAP adjusted diluted earnings per share (EPS) of $2.38, which is $0.18 higher than the anticipated $2.20. This performance is a testament to UPS’s strategic execution and operational efficiency. The company’s consolidated revenues reached $24.5 billion, surpassing the expected $24.01 billion, marking a notable revenue beat.

The strong financial results were driven by a combination of strategic initiatives and market dynamics. UPS’s chief executive officer, Carol Tomé, emphasized the company’s commitment to delivering superior service during peak seasons, which played a crucial role in outperforming financial expectations. The U.S. Domestic Segment, despite a 3.2% revenue decline due to lower volumes, saw an 8.3% increase in revenue per piece, which contributed to the overall financial success.

Internationally, UPS experienced a 2.5% increase in revenue, propelled by a significant 7.1% rise in revenue per piece. The company’s ability to adapt to global market conditions and optimize its operations was evident in these results. The Supply Chain Solutions segment, however, faced challenges with a 12.7% revenue decline, primarily due to decreased volumes in the Mail Innovations business. Nonetheless, the segment maintained a stable operating margin, showcasing UPS’s effective cost management strategies.

UPS Forecasts Revenue Growth and Margin Expansion in 2026

Looking ahead to 2026, UPS has set a positive outlook, projecting consolidated revenue to reach approximately $89.7 billion. This forward guidance reflects the company’s confidence in its strategic initiatives and market positioning. UPS plans to continue its focus on enhancing operational efficiencies and expanding its service offerings to drive growth and profitability.

The company is also planning significant capital expenditures, estimated at around $3.0 billion, to support its growth initiatives and infrastructure improvements. Dividend payments are expected to be approximately $5.4 billion, subject to board approval, indicating UPS’s commitment to returning value to its shareholders.

UPS’s strategic focus for 2026 includes completing the Amazon glide-down, which is anticipated to be a pivotal point in executing its growth strategy. The company aims to achieve sustained margin expansion through its continued investment in technology and network optimization. Additionally, UPS expects an effective tax rate of approximately 23.0%, which aligns with its financial planning and operational strategies.

Overall, UPS’s fourth-quarter results and 2026 guidance reflect a well-rounded approach to growth and financial stability. The company’s strategic initiatives, combined with its commitment to operational excellence, position it well to navigate future market challenges and capitalize on emerging opportunities.

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