Q2 2026 United Parcel Service Inc Earnings Call Transcript
Key Points
- United Parcel Service Inc (UPS) successfully executed its Amazon glide down and network reconfiguration plan, eliminating approximately 2 million pieces per day of lower-quality Amazon volume and removing $4.5 billion of related expenses.
- The company reported a 7.6% increase in consolidated revenue to $22.8 billion and a 12% increase in consolidated operating profit to $2.1 billion for the second quarter of 2026.
- UPS has invested in RFID and AI technologies, enhancing package visibility and network efficiency, which is expected to drive future growth and customer retention.
- The company achieved significant growth in its healthcare logistics segment, generating over $3 billion in revenue for the second consecutive quarter.
- UPS raised its full-year 2026 consolidated revenue outlook to approximately $91.2 billion and increased its operating profit expectation to approximately $8.65 billion, reflecting strong business momentum.
- The second quarter saw a decline in total US average daily volume by 3.3% compared to the previous year, primarily due to the planned Amazon glide down.
- International segment operating profit decreased by $59 million year over year, with a 120-basis-point negative impact from fuel costs.
- The company faced challenges from fuel price volatility, which, despite being covered by surcharge mechanisms, resulted in modest net impact on consolidated operating profit.
- UPS's International average daily volume declined by 5.8%, led by domestic declines in Europe, and export volume decreased by 4.2% year over year.
- The company is still navigating complex trade environments and supply chain disruptions, which could impact future performance.
Good morning. My name is Matthew, and I'll be your facilitator today. I'd like to welcome everyone to the UPS second-quarter 2026 earnings conference call. (Operator Instructions)
It is now my pleasure to turn the floor over to your host, Mr. PJ Guido, Investor Relations Officer. Sir, the floor is yours.
Good morning, and welcome to the UPS second-quarter 2026 earnings call. Joining me today are Carol Tomé, our CEO; Brian Dykes, our CFO; and a few additional members of our executive leadership team.
Before we begin, I want to remind you that some of the comments we'll make today are forward-looking statements and address our expectations for the future performance or operating results of our company. These statements are subject to risks and uncertainties, which are described in our 2025 Form 10-K and other reports we file with or furnish to the Securities and Exchange Commission. These reports, when filed, are available on the UPS Investor Relations website and from the SEC.
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