United Parcel Service NYSE:UPS, a global package-delivery and logistics company, rose in Tuesday after raising its annual revenue and adjusted-profit forecasts. UPS now expects 2026 revenue of approximately $91.2 billion, compared with its previous projection of $89.7 billion, and forecasts adjusted earnings of $7.22 per share. The improved outlook followed second-quarter results that exceeded analysts' expectations despite the company's planned reduction in lower-margin Amazon deliveries.
Quarterly revenue reached $22.83 billion, compared with the $21.81 billion expected by analysts. Adjusted earnings were $1.76 per share, exceeding the $1.66 consensus, while adjusted operating profit totaled $2.10 billion. UPS reported an 8% adjusted operating margin in its U.S. domestic business and a 12.4% margin in its international segment. Management said its planned Amazon volume glide down had been completed after Amazon represented 8.8% of UPS business during the first quarter, down from more than 13% previously.
UPS has been closing facilities and eliminating jobs as it works toward approximately $3 billion in savings during 2026. Management is attempting to improve the profitability of its delivery network while balancing lower package volumes, fuel surcharges and potential inflation in fuel costs. UPS exceeded the quarterly revenue estimate by approximately $1.02 billion while raising its annual forecast by $1.5 billion, suggesting the company expects recent operating improvements to extend beyond a single quarter. Investors may continue assessing whether reducing Amazon exposure can produce more durable margins without weakening UPS's overall network economics.