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UPS (NYSE: UPS) lifts 2026 outlook after $22.8B second-quarter revenue

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(High)
Filing Sentiment
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

United Parcel Service, Inc. reported second-quarter 2026 consolidated revenue of $22.8 billion, GAAP operating profit of $930 million and GAAP diluted EPS of $0.71. On a non-GAAP basis, adjusted operating profit was $2.1 billion with a 9.2% margin, and adjusted diluted EPS was $1.76, reflecting year-over-year growth in revenue and adjusted profitability.

U.S. Domestic revenue rose to $14.93 billion, with a non-GAAP adjusted operating margin of 8.0%; International revenue reached $5.04 billion with a 12.4% operating margin; and Supply Chain Solutions revenue was $2.86 billion with a 10.2% margin. Results included after-tax transformation charges of $891 million, mainly from workforce reductions under the Driver Choice Program. UPS raised its 2026 outlook to about $91.2 billion in consolidated revenue, non-GAAP adjusted operating profit of roughly $8.65 billion, and non-GAAP adjusted diluted EPS of about $7.22, and continues to target $3.0 billion in 2026 capital expenditures and around $5.4 billion in dividends.

Positive

  • Non-GAAP adjusted operating profit rose to $2.1B in Q2 2026 from $1.876B in Q2 2025.
  • UPS raised 2026 guidance to about $91.2B revenue, $8.65B non-GAAP operating profit and $7.22 non-GAAP EPS.

Negative

  • Q2 2026 GAAP net income declined to $604M from $1.283B a year earlier, reflecting large transformation charges.
  • Q2 2026 GAAP diluted EPS fell to $0.71 from $1.51, before non-GAAP adjustments.

Insights

Analyzing...

Item 2.02 Results of Operations and Financial Condition Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Q2 2026 Consolidated Revenue $22.8 billion Second quarter 2026 consolidated revenues
Q2 2026 Operating Profit (GAAP) $930 million Second quarter 2026 consolidated operating profit
Q2 2026 Non-GAAP Adjusted Operating Profit $2.1 billion Second quarter 2026 consolidated non-GAAP adjusted operating profit
Q2 2026 Diluted EPS (GAAP) $0.71 Second quarter 2026 diluted earnings per share
Q2 2026 Non-GAAP Adjusted Diluted EPS $1.76 Second quarter 2026 non-GAAP adjusted diluted EPS
After-tax Transformation Charges Q2 2026 $891 million After-tax transformation charges, or $1.05 per diluted share, in Q2 2026
2026 Revenue Outlook $91.2 billion Full-year 2026 consolidated revenue guidance
2026 Non-GAAP Adjusted Operating Profit Target $8.65 billion Full-year 2026 non-GAAP adjusted operating profit guidance
Free Cash Flow H1 2026 $1.573 billion Free cash flow for the six months ended June 30, 2026
Non-GAAP adjusted operating profit financial
"Consolidated operating margin of 4.1%; Non-GAAP Adj. Consolidated Operating Margin of 9.2%"
Driver Choice Program financial
"costs associated with workforce reduction initiatives from our recently completed Driver Choice Program"
Network Reconfiguration and Efficiency Reimagined financial
"Network Reconfiguration and Efficiency Reimagined: Our Network of the Future initiative is intended"
income tax valuation allowance financial
"Reflects the partial reversal of an income tax valuation allowance in 2025"
free cash flow financial
"Free Cash Flow (Non-GAAP measure) | $ | 1,573 | | $ | 742"
Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.
Consolidated revenue $22.8 billion year-over-year increase in consolidated revenue
Non-GAAP adjusted operating profit $2.1 billion up from $1.876 billion in Q2 2025
Non-GAAP adjusted diluted EPS $1.76 up from $1.55 in Q2 2025
GAAP diluted EPS $0.71 down from $1.51 in Q2 2025 due to transformation charges
Guidance

For full-year 2026, UPS guides to approximately $91.2 billion in consolidated revenue, about $8.65 billion in non-GAAP adjusted operating profit, and around $7.22 in non-GAAP adjusted diluted EPS, with expected capital expenditures of about $3.0 billion and dividends of around $5.4 billion.

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FAQ

What were UPS (UPS) consolidated revenue and earnings in Q2 2026?
UPS reported Q2 2026 revenue of $22.8 billion, GAAP operating profit of $930 million and GAAP diluted EPS of $0.71. On a non-GAAP basis, adjusted operating profit was $2.1 billion and adjusted diluted EPS was $1.76.

How did UPS (UPS) non-GAAP results in Q2 2026 compare year over year?
Non-GAAP adjusted operating profit increased to $2.1 billion in Q2 2026 from $1.876 billion in Q2 2025. Non-GAAP adjusted diluted EPS rose to $1.76 from $1.55, and the adjusted operating margin expanded to 9.2% from 8.8%.

What 2026 financial guidance did UPS (UPS) provide?
For full-year 2026, UPS now targets about $91.2 billion in consolidated revenue, non-GAAP adjusted operating profit of about $8.65 billion, and non-GAAP adjusted diluted EPS of about $7.22. It also expects capital expenditures near $3.0 billion and dividends around $5.4 billion.

How did UPS (UPS) business segments perform in Q2 2026?
U.S. Domestic revenue was $14.93 billion with a non-GAAP adjusted operating margin of 8.0%. International revenue reached $5.04 billion with a 12.4% margin. Supply Chain Solutions delivered $2.86 billion in revenue and a 10.2% operating margin, both on a GAAP and non-GAAP basis.

What was UPS (UPS) free cash flow for the first half of 2026?
For the six months ended June 30, 2026, UPS generated free cash flow of $1.573 billion. This reflected cash from operating activities of $3.083 billion, capital expenditures of $1.724 billion, and additional effects from property disposals and other investing activities.
0001090727falseJuly 28, 202600010907272026-07-282026-07-280001090727exch:XNYS2026-07-282026-07-280001090727exch:XNYSups:SeniorNotes1Due2028Member2026-07-282026-07-280001090727exch:XNYSups:SeniorNotes1.500Due2032Member2026-07-282026-07-28

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): July 28, 2026

g795027a09.jpg
United Parcel Service, Inc.
(Exact name of registrant as specified in its charter)
 
Delaware001-1545158-2480149
(State or other jurisdiction
of incorporation)		(Commission File Number)(IRS Employer
Identification No.)

      55 Glenlake Parkway, N.E., Atlanta, Georgia                30328
(Address of principal executive offices)                 (Zip Code)
Registrant’s telephone number, including area code (404) 828-6000
Not Applicable
(Former name or former address, if changed since last report)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of Each ClassTrading SymbolName of Each Exchange on Which Registered
Class B common stock, par value $0.01 per shareUPSNew York Stock Exchange
1% Senior Notes due 2028UPS28New York Stock Exchange
1.500% Senior Notes due 2032UPS32New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). Emerging growth company. ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐










Item 2.02 — Results of Operations and Financial Condition.
     
On July 28, 2026, United Parcel Service, Inc. (the “Company”) issued a press release containing information about the Company’s results of operations and financial condition for the quarter ended June 30, 2026. The Company also posted on its website at www.investors.ups.com financial statement schedules containing additional detail about the Company's results of operations and financial condition for the same period.

A copy of the press release is attached hereto as Exhibit 99.1. A copy of the financial statement schedules is attached hereto as Exhibit 99.2.

Item 9.01 — Financial Statements and Exhibits.

(d) Exhibits

99.1       Press release dated July 28, 2026
99.2       Financial statement schedules
104       The cover page from this Current Report on Form 8-K, formatted in Inline XBRL

The information contained in Items 2.02 and 9.01 shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934 (the "Exchange Act") or otherwise subject to the liabilities of that Section, nor shall it be deemed incorporated by reference in any filings under the Securities Act of 1933 or the Exchange Act, except as may be expressly set forth by reference in any such filing.



Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
UNITED PARCEL SERVICE, INC.
Date:
July 28, 2026
By:/s/ BRIAN DYKES
Brian Dykes
Executive Vice President and Chief Financial Officer



Exhibit 99.1

UPS RELEASES 2Q 2026 EARNINGS
Delivered Year-over-year Consolidated Revenue and Non-GAAP Adjusted* Operating Profit Growth; Expanded Non-GAAP Adjusted Operating Margin
•Consolidated Revenues of $22.8B
•Consolidated Operating Margin of 4.1%; Non-GAAP Adj. Consolidated Operating Margin of 9.2%
•Diluted EPS of $0.71; Non-GAAP Adj. Diluted EPS of $1.76
•Raises Full-year 2026 Consolidated Revenue Outlook to Approximately $91.2B and Non-GAAP Adj. Operating Profit Target to Approximately $8.65B
•Raises Full-year Non-GAAP Adj. Diluted EPS Guidance to Approximately $7.22

ATLANTA – July 28, 2026 – UPS (NYSE:UPS) today announced second-quarter 2026 consolidated revenues of $22.8 billion. Consolidated operating profit was $930 million; and non-GAAP adjusted consolidated operating profit was $2.1 billion. Diluted earnings per share were $0.71; and non-GAAP adjusted diluted earnings per share were $1.76.

For the second quarter of 2026, GAAP results included after-tax transformation charges of $891 million, or $1.05 per diluted share, consisting primarily of employee separation costs associated with workforce reduction initiatives from our recently completed Driver Choice Program.

“I want to thank all UPSers for their extraordinary work over the past 18 months as we successfully completed our Amazon glide down and related network reconfiguration initiatives as designed,” said Carol Tomé, UPS chief executive officer. “Our second-quarter results marked an expected and significant shift in our performance and we delivered both consolidated revenue and non-GAAP adjusted operating profit growth. We entered the second half of the year with strong momentum and are raising our full-year consolidated revenue, non-GAAP adjusted operating profit and non-GAAP adjusted diluted EPS guidance.”

U.S. Domestic Segment

2Q 2026
Non-GAAP
Adjusted
2Q 2026

2Q 2025
Non-GAAP
Adjusted
2Q 2025
Revenue
$14,930 M$14,083 M
Operating profit
$16 M$1,188 M$916 M$982 M

•Revenue increased 6.0%, driven by a 9.3% increase in revenue per piece.
•Operating margin was 0.1%; non-GAAP adjusted operating margin was 8.0%.


International Segment

2Q 2026
Non-GAAP
Adjusted
2Q 2026

2Q 2025
Non-GAAP
Adjusted
2Q 2025
Revenue
$5,044 M$4,485 M
Operating profit
$623 M$623 M$672 M$682 M

•Revenue increased 12.5%, driven by an 18.9% increase in revenue per piece.
•Operating margin on both a GAAP and non-GAAP adjusted basis was 12.4%.




Supply Chain Solutions1

2Q 2026
Non-GAAP
Adjusted
2Q 2026

2Q 2025
Non-GAAP
Adjusted
2Q 2025
Revenue
$2,860 M$2,653 M
Operating profit
$291 M$291 M$234 M$212 M
1 Consists of operating segments that do not meet the criteria of a reportable segment under ASC Topic 280 – Segment Reporting.

•Revenue increased 7.8%, primarily due to growth in forwarding and logistics, including healthcare.
•Operating margin on both a GAAP and non-GAAP adjusted basis was 10.2%.

2026 Outlook
The company provides certain guidance on a non-GAAP adjusted basis because it is not possible to predict or provide a reconciliation reflecting the impact of various potential future events, including the impact of pension adjustments, certain strategic initiatives or other unanticipated events, which would be included in reported (GAAP) results and could be material.

For the full year 2026, the company is raising its guidance for consolidated revenue to approximately $91.2 billion, consolidated non-GAAP adjusted operating profit to approximately $8.65 billion, and non-GAAP adjusted diluted EPS to approximately $7.22.

The company also confirms expected capital expenditures of about $3.0 billion and dividend payments of around $5.4 billion, subject to board approval. The effective tax rate is still expected to be approximately 23.0%.

* “Non-GAAP Adjusted” or “Non-GAAP Adj.” amounts are non-GAAP adjusted financial measures. See the appendix to this release for a discussion of non-GAAP adjusted financial measures, including a reconciliation to the most closely correlated GAAP measure.


Contacts:
UPS Media Relations: 404-828-7123 or pr@ups.com
UPS Investor Relations: 404-828-6059 (option 4) or investor@ups.com

# # #


Conference Call Information
UPS CEO Carol Tomé and CFO Brian Dykes will discuss second-quarter results with investors and analysts during a conference call at 8:30 a.m. ET, July 28, 2026. That call will be open to others through a live Webcast. To access the Webcast, go to the UPS Investor Relations page and click on “Earnings Conference Call.” Additional financial information is included in the detailed financial schedules being posted on www.investors.ups.com under “Quarterly Earnings and Financials” and as furnished to the SEC as an exhibit to our Current Report on Form 8-K.

About UPS

UPS (NYSE: UPS) is one of the world’s largest companies, with 2025 revenue of $88.7 billion, and provides a broad range of integrated logistics solutions for customers in more than 200 countries and territories. Focused on its purpose statement, “Moving our world forward by delivering what matters,” the company’s approximately 460,000 employees embrace a strategy that is simply stated and powerfully executed: Customer First. People Led. Innovation Driven. UPS is committed to reducing its impact on the environment and supporting the communities we serve around the world. More information can be found at www.ups.com, about.ups.com and www.investors.ups.com.

Forward-Looking Statements
This release, our Annual Report on Form 10-K for the year ended December 31, 2025 and our other filings with the Securities and Exchange Commission contain and in the future may contain “forward-looking statements”. Statements other than those of current or historical fact, and all statements accompanied by terms such as “will,” “believe,” “project,” “expect,” “estimate,” “assume,” “intend,” “anticipate,” “target,” “plan,” and similar terms, are intended to be forward-looking statements.
From time to time, we also include written or oral forward-looking statements in other publicly disclosed materials. Forward-looking statements may relate to our intent, belief, forecasts of, or current expectations about our strategic direction, prospects, future results, or future events; they do not relate strictly to historical or current facts. Management believes that these forward-looking statements are reasonable as and when made. However, caution should be taken not to place undue reliance on any forward-looking statements because such statements speak only as of the date when made and the future, by its very nature, cannot be predicted with certainty.
Forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from our historical experience and our present expectations or anticipated results. These risks and uncertainties include, but are not limited to: changes in general economic conditions in the U.S. or internationally, including as a result of changes in the global trade policy, new or increased tariffs, government shutdowns, or geopolitical uncertainty, tensions and/or conflicts in or arising from various countries and regions, including the European Union, Ukraine, the Russian Federation, the Middle East and the Trans-Pacific region; significant competition on a local, regional, national and international basis; changes in our relationships with our significant customers; our ability to attract and retain qualified employees; strikes, work stoppages or slowdowns by our employees; increased or more complex physical or operational security requirements; a significant cybersecurity incident, or increased data protection regulations; our ability to maintain our brand image and corporate reputation; impacts from global climate change; interruptions in or impacts on our business from natural or man-made events or disasters including terrorist attacks, epidemics or pandemics; exposure to changing economic, political, regulatory and social developments in international and emerging markets; our ability to realize the anticipated benefits from acquisitions, dispositions, joint ventures or strategic alliances; the effects of changing prices of energy, including gasoline, diesel, jet fuel, other fuels and interruptions in supplies of these commodities; changes in exchange rates or interest rates; our ability to accurately forecast our future capital investment needs; increases in our expenses or funding obligations relating to employee health, retiree health and/or pension benefits; our ability to manage insurance and claims expenses; changes in business strategy, government regulations or economic or


market conditions that may result in impairments of our assets; potential additional U.S. or international tax liabilities; increasingly stringent regulations related to climate change; potential claims or litigation related to labor and employment, personal injury, property damage, business practices, environmental liability and other matters; and other risks discussed in our filings with the Securities and Exchange Commission from time to time, including our Annual Report on Form 10-K for the year ended December 31, 2025, and subsequently filed reports. You should consider the limitations on, and risks associated with, forward-looking statements and not unduly rely on the accuracy of predictions contained in such forward-looking statements. We do not undertake any obligation to update forward-looking statements to reflect events, circumstances, changes in expectations, or the occurrence of unanticipated events after the date of those statements, except as required by law.
The Company routinely posts important information, including news releases, announcements, materials provided or displayed at analyst or investor conferences, and other statements about its business and results of operations, that may be deemed material to investors on the Company’s Investors Relations website at www.investors.ups.com. The Company uses its website as a means of disclosing material, nonpublic information and for complying with the Company’s disclosure obligations under Regulation FD. Investors should monitor the Company’s Investor Relations website in addition to following the Company’s press releases, filings with the SEC, public conference calls and webcasts. We do not incorporate the contents of any website into this or any other report we file with the SEC.




Reconciliation of GAAP and Non-GAAP Adjusted Financial Measures

We supplement the reporting of our financial information determined under generally accepted accounting principles ("GAAP") with certain non-GAAP adjusted financial measures. Management views and evaluates business performance on both a GAAP basis and by excluding costs and benefits associated with these non-GAAP adjusted financial measures. As a result, we believe the presentation of these non-GAAP adjusted financial measures better enables users of our financial information to view and evaluate underlying business performance from the same perspective as management.

Non-GAAP adjusted financial measures should be considered in addition to, and not as an alternative for, our reported results prepared in accordance with GAAP. Our non-GAAP adjusted financial measures do not represent a comprehensive basis of accounting and therefore may not be comparable to similarly titled measures reported by other companies.

Forward-Looking Non-GAAP Adjusted Financial Measures

From time to time when presenting forward-looking non-GAAP adjusted financial measures, we are unable to provide quantitative reconciliations to the most closely correlated GAAP measure due to the uncertainty in the timing, amount or nature of any adjustments, which could be material in any period.
Transformation Strategy Costs

We exclude the impact of charges related to initiatives within our transformation strategy. Our transformation strategy initiatives have spanned several years and are designed to fundamentally change the spans and layers of our organization structure, processes, technologies and the composition of our business portfolio.

Various circumstances precipitated these initiatives, including identification and prioritization of certain investments, developments and changes in competitive landscapes, inflationary pressures, consumer behaviors, and other factors including post-COVID normalization and volume diversions attributed to our 2023 labor negotiations.

Our transformation strategy has included the following initiatives:

Transformation 2.0: We reduced spans and layers of management, reviewed and refined our business portfolio and invested in certain technologies to reduce costs, increase visibility and reduce reliance on legacy systems. Costs associated with Transformation 2.0 consisted primarily of compensation and benefit costs related to reductions in our workforce and fees paid to third-party consultants. This initiative was completed in 2025.

Fit to Serve: We undertook our Fit to Serve initiative to right-size our business to create a more efficient operating model that was more responsive to market dynamics through a workforce reduction, primarily within management. This initiative was completed in 2025.

Network Reconfiguration and Efficiency Reimagined: Our Network of the Future initiative is intended to enhance the efficiency of our network through automation and operational sort consolidation in our U.S. Domestic Package network. In connection with our strategic execution of planned volume declines from our largest customer, we began our Network Reconfiguration initiative, which is an expansion of Network of the Future, and has led, and will continue to lead, to further reductions in our facilities, vehicles, aircraft and workforce, as well as an end-to-end process redesign. We launched our Efficiency Reimagined  initiatives to undertake the end-to-end process redesign effort which will align our organizational processes to the network


reconfiguration and enhance our business performance and profitability beyond ordinary ongoing efforts.

Through these initiatives we have reduced our operational workforce and closed certain daily operations at leased and owned buildings. In the first six months of 2026, we achieved approximately $1.2 billion of program benefits from these initiatives. We expect to achieve approximately $3 billion in full year 2026 benefits from these initiatives.

As a part of these initiatives, we expect non-GAAP adjusted operating expense to exclude between $1.3 and $1.5 billion in cost during the full year 2026, primarily related to employee separation costs and third-party consulting fees, of which $1.1 billion is related to the Driver Choice Program. As of June 30, 2026 we had incurred costs to date of $1.8 billion, including $1.2 billion in 2026, as a part of these initiatives. These initiatives are expected to conclude by 2027.

We do not consider the related costs to be ordinary because each program involves separate and distinct activities that span multiple periods, and such costs are not expected to drive incremental revenue. These initiatives exceed ordinary, ongoing efforts to enhance our business performance and profitability.

Goodwill and Asset Impairments

We exclude the impact of goodwill and certain asset impairment charges. We do not consider these charges when evaluating the operating performance of our business units, making decisions to allocate resources or in determining incentive compensation awards.

Net Gains and Losses Related to Divestitures

We exclude the impact of gains or losses related to the business divestitures. We do not consider these gains or losses to be a component of our ongoing operations, nor do we consider their impact when evaluating the operating performance of our business units, making decisions to allocate resources or in determining incentive compensation awards.

Reversal of Income Tax Valuation Allowance

We previously recorded non-GAAP adjustments for transactions that resulted in capital loss deferred tax assets not expected to be realized. As a result of property sales during 2025, these capital losses were fully realized within that year. We supplement our presentation with non-GAAP adjusted financial measures that exclude the impact of the reversals of the valuation allowances against these deferred tax assets as we believe such treatment is consistent with how the valuation allowance was initially established.

Non-GAAP Adjusted Cost per Piece

We evaluate the efficiency of our operations using various metrics, including non-GAAP adjusted cost per piece. Non-GAAP adjusted cost per piece in any period is calculated as non-GAAP adjusted operating expenses divided by total volume. Because non-GAAP adjusted operating expenses exclude costs or charges that we do not consider a part of underlying business performance when monitoring and evaluating the operating performance of our business units, making decisions to allocate resources or in determining incentive compensation awards, we believe this is the appropriate metric on which to base reviews and evaluations of the efficiency of our operational performance.



Free Cash Flow

We calculate free cash flow as cash flows from operating activities less capital expenditures, proceeds from disposals of property, plant and equipment, and plus or minus the net changes in other investing activities. We believe free cash flow is an important indicator of how much cash is generated by our ongoing business operations and we use this as a measure of incremental cash available to invest in our business, meet our debt obligations and return cash to shareowners.




United Parcel Service, Inc.
Reconciliation of GAAP and Non-GAAP Adjusted Measures
(unaudited)
Three Months Ended
June 30,
(amounts in millions)2026202520262025
Operating Profit (GAAP)$930 $1,822 Operating Margin (GAAP)4.1 %8.6 %
Transformation Strategy Costs:Transformation Strategy Costs:
Transformation 2.0— (3)Transformation 2.0— %— %
Fit to Serve— 9 Fit to Serve— %— %
Network Reconfiguration and Efficiency Reimagined1,172 68 Network Reconfiguration and Efficiency Reimagined5.1 %0.3 %
Total Transformation Strategy Costs1,172 74 Total Transformation Strategy Costs5.1 %0.3 %
Loss (Gain) on Divestiture (1)
— (20)
Loss (Gain) on Divestiture (1)
— %(0.1)%
Non-GAAP Adjusted Operating Profit$2,102 $1,876 Non-GAAP Adjusted Operating Margin9.2 %8.8 %
(1) Reflects pre-tax gain of $20 million on the divestiture of a business within Supply Chain Solutions in 2025.


United Parcel Service, Inc.
Reconciliation of GAAP and Non-GAAP Adjusted Measures
(unaudited)
Three Months Ended
June 30,
(amounts in millions)2026202520262025
Income Before Income Taxes (GAAP)$761 $1,662 Income Tax Expense (GAAP)$157 $379 
Transformation Strategy Costs:Transformation Strategy Costs:
Transformation 2.0— (3)Transformation 2.0— (1)
Fit to Serve— 9 Fit to Serve— 2 
Network Reconfiguration and Efficiency Reimagined1,172 68 Network Reconfiguration and Efficiency Reimagined281 16 
Total Transformation Strategy Costs1,172 74 Total Transformation Strategy Costs281 17 
Loss (Gain) on Divestiture (1)
— (20)
Loss (Gain) on Divestiture (1)
— (5)
Reversal of Income Tax Valuation Allowance (2)
13
Non-GAAP Adjusted Income Before Income Taxes$1,933 $1,716 Non-GAAP Adjusted Income Tax Expense$438 $404 
(1) Reflects pre-tax gain of $20 million on the divestiture of a business within Supply Chain Solutions in 2025.
(2) Reflects the partial reversal of an income tax valuation allowance in 2025.


United Parcel Service, Inc.
Reconciliation of GAAP and Non-GAAP Adjusted Measures
(unaudited)
Three Months Ended
June 30,
(amounts in millions)2026202520262025
Net Income (GAAP)$604 $1,283 Diluted Earnings Per Share (GAAP)$0.71 $1.51 
Transformation Strategy Costs:Transformation Strategy Costs:
Transformation 2.0— (2)Transformation 2.0— — 
Fit to Serve— 7 Fit to Serve— 0.01 
Network Reconfiguration and Efficiency Reimagined891 52 Network Reconfiguration and Efficiency Reimagined1.050.07
Total Transformation Strategy Costs891 57 Total Transformation Strategy Costs1.05 0.08 
Loss (Gain) on Divestiture (1)
— (15)
Loss (Gain) on Divestiture (1)
— (0.02)
Reversal of Income Tax Valuation Allowance (2)
— (13)
Reversal of Income Tax Valuation Allowance (2)
— (0.02)
Non-GAAP Adjusted Net Income$1,495 $1,312 Non-GAAP Adjusted Diluted Earnings Per Share$1.76 $1.55 
(1) Reflects pre-tax gain of $20 million on the divestiture of a business within Supply Chain Solutions in 2025.
(2) Reflects the partial reversal of an income tax valuation allowance in 2025.



United Parcel Service, Inc.
Reconciliation of GAAP and Non-GAAP Adjusted Measures by Segment
(unaudited)

Three Months Ended
June 30,
202620252026202520262025
U.S. Domestic PackageOperating Expenses% ChangeOperating Profit% ChangeOperating Margin
GAAP$14,914 $13,167 13.3 %$16 $916 (98.3)%0.1 %6.5 %
Adjusted for:
Transformation Strategy Costs(1,172)(66)1,172 66 7.9 %0.5 %
Non-GAAP Adjusted Measure$13,742 $13,101 4.9 %$1,188 $982 21.0 %8.0 %7.0 %
202620252026202520262025
International PackageOperating Expenses% ChangeOperating Profit% ChangeOperating Margin
GAAP$4,421 $3,813 15.9 %$623 $672 (7.3)%12.4 %15.0 %
Adjusted for:
Transformation Strategy Costs— (10)— 10 — %0.2 %
Non-GAAP Adjusted Measure$4,421 $3,803 16.3 %$623 $682 (8.7)%12.4 %15.2 %
202620252026202520262025
Supply Chain SolutionsOperating Expenses% ChangeOperating Profit% ChangeOperating Margin
GAAP$2,569 $2,419 6.2 %$291 $234 24.4 %10.2 %8.8 %
Adjusted for:
Transformation Strategy Costs— 2 — (2)— %(0.1)%
Loss (Gain) on Divestiture— 20 — (20)— %(0.7)%
Non-GAAP Adjusted Measure$2,569 $2,441 5.2 %$291 $212 37.3 %10.2 %8.0 %


United Parcel Service, Inc.
Reconciliation of GAAP and Non-GAAP Adjusted Measures
(unaudited)
Six Months Ended
June 30,
(amounts in millions)2026202520262025
Operating Profit (GAAP)$2,197 $3,488 Operating Margin (GAAP)5.0 %8.2 %
Transformation Strategy Costs:Transformation Strategy Costs:
Transformation 2.0 — 13 Transformation 2.0 — %— %
Fit to Serve— 28 Fit to Serve— %0.1 %
Network Reconfiguration and Efficiency Reimagined1,227 91 Network Reconfiguration and Efficiency Reimagined2.8 %0.2 %
Total Transformation Strategy Costs1,227 132 Total Transformation Strategy Costs2.8 %0.3 %
Loss (Gain) on Divestiture (1)
— 19 
Loss (Gain) on Divestiture (1)
— %— %
Non-GAAP Adjusted Operating Profit$3,424 $3,639 Non-GAAP Adjusted Operating Margin7.8 %8.5 %
(1) Reflects a pre-tax net loss of $19 million on the divestiture of a business within Supply Chain Solutions in 2025.


United Parcel Service, Inc.
Reconciliation of GAAP and Non-GAAP Adjusted Measures
(unaudited)
Six Months Ended
June 30,
(amounts in millions)2026202520262025
Other Income (Expense) (GAAP)$(312)$(303)Income Before Income Taxes (GAAP)$1,885 $3,185 
Goodwill and Asset Impairment Charges (2)
— 19 Transformation Strategy Costs:
Transformation 2.0 — 13 
Non-GAAP Adjusted Other Income (Expense)$(312)$(284)
Fit to Serve— 28 
Network Reconfiguration and Efficiency Reimagined1,227 91 
Total Transformation Strategy Costs1,227 132 
Loss (Gain) on Divestiture (1)
— 19 
Goodwill and Asset Impairment Charges (2)
— 19 
Non-GAAP Adjusted Income Before Income Taxes$3,112 $3,355 
(1) Reflects a pre-tax net loss of $19 million on the divestiture of a business within Supply Chain Solutions in 2025.
(2) Reflects the write-down of an equity investment in 2025.


















United Parcel Service, Inc.
Reconciliation of GAAP and Non-GAAP Adjusted Measures
(unaudited)
Six Months Ended
June 30,
(amounts in millions)20262025
Income Tax Expense (GAAP)$417 $715 
Transformation Strategy Costs:
Transformation 2.0— 3 
Fit to Serve— 6 
Network Reconfiguration and Efficiency Reimagined294 22 
Total Transformation Strategy Costs294 31 
Loss (Gain) on Divestiture (1)
— 4 
Reversal of Income Tax Valuation Allowance (3)
— 23 
Non-GAAP Adjusted Income Tax Expense$711 $773 
(1) Reflects a pre-tax net loss of $19 million on the divestiture of a business within Supply Chain Solutions in 2025.
(3) Reflects the partial reversal of an income tax valuation allowance in 2025.


United Parcel Service, Inc.
Reconciliation of GAAP and Non-GAAP Adjusted Measures
(unaudited)
Six Months Ended
June 30,
(amounts in millions)2026202520262025
Net Income (GAAP)$1,468 $2,470 Diluted Earnings Per Share (GAAP)$1.73 $2.91 
Transformation Strategy Costs:Transformation Strategy Costs:
Transformation 2.0 — 10 Transformation 2.0 — 0.01 
Fit to Serve— 22 Fit to Serve— 0.03 
Network Reconfiguration and Efficiency Reimagined933 69 Network Reconfiguration and Efficiency Reimagined1.09 0.08 
Total Transformation Strategy Costs933 101 Total Transformation Strategy Costs1.09 0.12 
Loss (Gain) on Divestiture (1)
— 15 
Loss (Gain) on Divestiture (1)
— 0.02 
Goodwill and Asset Impairment Charges (2)
— 19 
Goodwill and Asset Impairment Charges (2)
— 0.02 
Reversal of Income Tax Valuation Allowance (3)
— (23)
Reversal of Income Tax Valuation Allowance (3)
— (0.03)
Non-GAAP Adjusted Net Income$2,401 $2,582 Non-GAAP Adjusted Diluted Earnings Per Share$2.82 $3.04 
(1) Reflects a pre-tax net loss of $19 million on the divestiture of a business within Supply Chain Solutions in 2025.
(2) Reflects the write-down of an equity investment in 2025.
(3) Reflects the partial reversal of an income tax valuation allowance in 2025.



United Parcel Service, Inc.
Reconciliation of GAAP and Non-GAAP Adjusted Measures by Segment
(unaudited)
Six Months Ended
June 30,
202620252026202520262025
U.S. Domestic PackageOperating Expenses% ChangeOperating Profit% ChangeOperating Margin
GAAP$28,524 $26,648 7.0 %$531 $1,895 (72.0)%1.8 %6.6 %
Adjusted for:
Transformation Strategy Costs(1,222)(98)1,222 98 4.2 %0.4 %
Non-GAAP Adjusted Measure$27,302 $26,550 2.8 %$1,753 $1,993 (12.0)%6.0 %7.0 %
202620252026202520262025
International PackageOperating Expenses% ChangeOperating Profit% ChangeOperating Margin
GAAP$8,414 $7,545 11.5 %$1,170 $1,313 (10.9)%12.2 %14.8 %
Adjusted for:
Transformation Strategy Costs(4)(23)4 23 — %0.3 %
Non-GAAP Adjusted Measure$8,410 $7,522 11.8 %$1,174 $1,336 (12.1)%12.2 %15.1 %
202620252026202520262025
Supply Chain SolutionsOperating Expenses% ChangeOperating Profit% ChangeOperating Margin
GAAP$4,901 $5,086 (3.6)%$496 $280 77.1 %9.2 %5.2 %
Adjusted for:
Transformation Strategy Costs(1)(11)1 11 — %0.2 %
Loss (Gain) on Divestiture— (19)— 19 0.4 %
Non-GAAP Adjusted Measure$4,900 $5,056 (3.1)%$497 $310 60.3 %9.2 %5.8 %



United Parcel Service, Inc.
Reconciliation of Free Cash Flow (Non-GAAP measure)
(unaudited)
Six Months Ended
June 30,
(amounts in millions)20262025
Cash flows from operating activities$3,083 $2,666 
Capital expenditures(1,724)(1,999)
Proceeds from disposals of property, plant and equipment198 91 
Other investing activities16 (16)
Free Cash Flow (Non-GAAP measure)$1,573 $742 
















United Parcel Service, Inc.
Reconciliation of GAAP and Non-GAAP Adjusted Measures - U.S. Domestic Cost Per Piece
(unaudited)

Three Months Ended
June 30,
20262025% Change
Operating Days64 64 
Average Daily U.S. Domestic Package Volume (in thousands)16,002 16,553 
U.S. Domestic Package Cost Per Piece (GAAP)$14.23 $12.18 16.8 %
Transformation Strategy Costs(1.14)(0.06)
U.S. Domestic Package Non-GAAP Adjusted Cost Per Piece$13.09 $12.12 8.0 %

Note: Cost per piece excludes expense associated with cargo and other activity.


United Parcel Service, Inc.
Reconciliation of GAAP and Non-GAAP Adjusted Measures - U.S. Domestic Cost Per Piece
(unaudited)

Six Months Ended
June 30,
20262025% Change
Operating Days126 126 
Average Daily U.S. Domestic Package Volume (in thousands)16,020 16,991 
U.S. Domestic Package Cost Per Piece (GAAP)$13.82 $12.20 13.3 %
Transformation Strategy Costs(0.61)(0.05)
U.S. Domestic Package Non-GAAP Adjusted Cost Per Piece$13.21 $12.15 8.7 %

Note: Cost per piece excludes expense associated with cargo and other activity.


Exhibit 99.2
United Parcel Service, Inc.
Selected Financial Data - Second Quarter
(unaudited)
Three Months Ended
June 30,
20262025Change% Change
(amounts in millions, except per share data)
Statement of Income Data:
Revenue:
  U.S. Domestic Package$14,930 $14,083 $847 6.0 %
  International Package5,044 4,485 559 12.5 %
  Supply Chain Solutions2,860 2,653 207 7.8 %
  Total revenue22,834 21,221 1,613 7.6 %
Operating expenses:
  U.S. Domestic Package14,914 13,167 1,747 13.3 %
  International Package4,421 3,813 608 15.9 %
  Supply Chain Solutions2,569 2,419 150 6.2 %
  Total operating expenses21,904 19,399 2,505 12.9 %
Operating profit:
  U.S. Domestic Package16 916 (900)(98.3)%
  International Package623 672 (49)(7.3)%
  Supply Chain Solutions291 234 57 24.4 %
  Total operating profit930 1,822 (892)(49.0)%
Other income (expense):
 Other pension income (expense)66 38 28 73.7 %
  Investment income (expense) and other37 40 (3)(7.5)%
  Interest expense(272)(238)(34)14.3 %
  Total other income (expense)(169)(160)(9)5.6 %
Income before income taxes761 1,662 (901)(54.2)%
Income tax expense157 379 (222)(58.6)%
Net income$604 $1,283 $(679)(52.9)%
Net income as a percentage of revenue2.6 %6.0 %
Per share amounts:
  Basic earnings per share$0.71 $1.51 $(0.80)(53.0)%
  Diluted earnings per share$0.71 $1.51 $(0.80)(53.0)%
Weighted-average shares outstanding:
  Basic851 847 4 0.5 %
  Diluted851 847 4 0.5 %
Non-GAAP Adjusted Income Data (1):
Operating profit:
  U.S. Domestic Package $1,188 $982 $206 21.0 %
  International Package 623 682 (59)(8.7)%
  Supply Chain Solutions291 212 79 37.3 %
  Total operating profit 2,102 1,876 226 12.0 %
Total other income (expense)$(169)$(160)$(9)5.6 %
Income before income taxes $1,933 $1,716 $217 12.6 %
Net income $1,495 $1,312 $183 13.9 %
Basic earnings per share $1.76 $1.55 $0.21 13.5 %
Diluted earnings per share$1.76 $1.55 $0.21 13.5 %

(1) See Non-GAAP schedules for reconciliation of adjustments.
Certain amounts are calculated based on unrounded numbers.

United Parcel Service, Inc.
Selected Operating Data - Second Quarter
(unaudited)
Three Months Ended
June 30,
20262025Change% Change
Revenue (in millions):
U.S. Domestic Package:
   Next Day Air$2,578 $2,293 $285 12.4 %
   Deferred1,102 1,024 78 7.6 %
   Ground10,908 10,484 424 4.0 %
Cargo and Other342 282 60 21.3 %
      Total U.S. Domestic Package14,930 14,083 847 6.0 %
International Package:
   Domestic869 830 39 4.7 %
   Export3,962 3,484 478 13.7 %
   Cargo and Other213 171 42 24.6 %
      Total International Package5,044 4,485 559 12.5 %
Supply Chain Solutions:
   Forwarding791 732 59 8.1 %
Logistics1,540 1,476 64 4.3 %
   Other529 445 84 18.9 %
      Total Supply Chain Solutions2,860 2,653 207 7.8 %
Consolidated$22,834 $21,221 $1,613 7.6 %
Consolidated volume (in millions)1,217 1,263 (46)(3.6)%
Operating weekdays64 64 — 0.0 %
Average Daily Package Volume (in thousands):
U.S. Domestic Package:
   Next Day Air1,411 1,429 (18)(1.3)%
   Deferred792 825 (33)(4.0)%
   Ground13,799 14,299 (500)(3.5)%
      Total U.S. Domestic Package16,002 16,553 (551)(3.3)%
International Package:
   Domestic1,394 1,507 (113)(7.5)%
   Export1,610 1,681 (71)(4.2)%
      Total International Package3,004 3,188 (184)(5.8)%
Consolidated19,006 19,741 (735)(3.7)%
Average Revenue Per Piece:
U.S. Domestic Package:
   Next Day Air$28.55 $25.07 $3.48 13.9 %
   Deferred21.74 19.39 2.35 12.1 %
   Ground12.35 11.46 0.89 7.8 %
      Total U.S. Domestic Package14.24 13.03 1.21 9.3 %
International Package:
   Domestic9.74 8.61 1.13 13.1 %
   Export38.45 32.38 6.07 18.7 %
      Total International Package25.13 21.14 3.99 18.9 %
Consolidated$15.96 $14.34 $1.62 11.3 %
Certain amounts are calculated based on unrounded numbers.

United Parcel Service, Inc.
Detail of Operating Expenses - Second Quarter
(unaudited)
Three Months Ended
June 30,
20262025Change% Change
(in millions)
Compensation and benefits$12,654 $11,626 $1,028 8.8 %
Repairs and maintenance789 755 34 4.5 %
Depreciation and amortization980 936 44 4.7 %
Purchased transportation3,187 2,522 665 26.4 %
Fuel1,697 1,058 639 60.4 %
Other occupancy557 544 13 2.4 %
Other expenses2,040 1,958 82 4.2 %
Total operating expenses$21,904 $19,399 $2,505 12.9 %
Certain amounts are calculated based on unrounded numbers.

United Parcel Service, Inc.
Selected Financial Data - Year to Date
(unaudited)
Six Months Ended
June 30,
20262025Change% Change
(amounts in millions, except per share data)
Statement of Income Data:
Revenue:
  U.S. Domestic Package$29,055 $28,543 $512 1.8 %
  International Package9,584 8,858 726 8.2 %
  Supply Chain Solutions5,397 5,366 31 0.6 %
  Total revenue44,036 42,767 1,269 3.0 %
Operating expenses:
  U.S. Domestic Package28,524 26,648 1,876 7.0 %
  International Package8,414 7,545 869 11.5 %
  Supply Chain Solutions4,901 5,086 (185)(3.6)%
  Total operating expenses41,839 39,279 2,560 6.5 %
Operating profit:
  U.S. Domestic Package531 1,895 (1,364)(72.0)%
  International Package1,170 1,313 (143)(10.9)%
  Supply Chain Solutions496 280 216 77.1 %
  Total operating profit2,197 3,488 (1,291)(37.0)%
Other income (expense):
 Other pension income (expense)133 75 58 77.3 %
  Investment income (expense) and other93 82 11 13.4 %
  Interest expense(538)(460)(78)17.0 %
  Total other income (expense)(312)(303)(9)3.0 %
Income before income taxes1,885 3,185 (1,300)(40.8)%
Income tax expense417 715 (298)(41.7)%
Net income$1,468 $2,470 $(1,002)(40.6)%
Net income as a percentage of revenue3.3 %5.8 %
Per share amounts:
  Basic earnings per share$1.73 $2.91 $(1.18)(40.5)%
  Diluted earnings per share$1.73 $2.91 $(1.18)(40.5)%
Weighted-average shares outstanding:
  Basic850 849 1 0.1 %
  Diluted851 849 2 0.2 %
Non-GAAP Adjusted Income Data (1):
Operating profit:
  U.S. Domestic Package $1,753 $1,993 $(240)(12.0)%
  International Package 1,174 1,336 (162)(12.1)%
  Supply Chain Solutions497 310 187 60.3 %
  Total operating profit 3,424 3,639 (215)(5.9)%
Total other income (expense)$(312)$(284)$(28)9.9 %
Income before income taxes $3,112 $3,355 $(243)(7.2)%
Net income $2,401 $2,582 $(181)(7.0)%
Basic earnings per share $2.82 $3.04 $(0.22)(7.2)%
Diluted earnings per share$2.82 $3.04 $(0.22)(7.2)%

(1) See Non-GAAP schedules for reconciliation of adjustments.
Certain amounts are calculated based on unrounded numbers.

United Parcel Service, Inc.
Selected Operating Data - Year to Date
(unaudited)
Six Months Ended
June 30,
20262025Change% Change
Revenue (in millions):
U.S. Domestic Package:
   Next Day Air$4,932 $4,654 $278 6.0 %
   Deferred2,147 2,073 74 3.6 %
   Ground21,346 21,193 153 0.7 %
Cargo and Other630 623 7 1.1 %
      Total U.S. Domestic Package29,055 28,543 512 1.8 %
International Package:
   Domestic1,704 1,601 103 6.4 %
   Export7,510 6,928 582 8.4 %
   Cargo and Other370 329 41 12.5 %
      Total International Package9,584 8,858 726 8.2 %
Supply Chain Solutions:
   Forwarding1,447 1,458 (11)(0.8)%
Logistics2,949 3,048 (99)(3.2)%
   Other1,001 860 141 16.4 %
      Total Supply Chain Solutions5,397 5,366 31 0.6 %
Consolidated$44,036 $42,767 $1,269 3.0 %
Consolidated volume (in millions)2,406 2,552 (146)(5.7)%
Operating weekdays126 126 — 0.0 %
Average Daily Package Volume (in thousands):
U.S. Domestic Package:
   Next Day Air1,389 1,474 (85)(5.8)%
   Deferred798 845 (47)(5.6)%
   Ground13,833 14,672 (839)(5.7)%
      Total U.S. Domestic Package16,020 16,991 (971)(5.7)%
International Package:
   Domestic1,432 1,541 (109)(7.1)%
   Export1,641 1,725 (84)(4.9)%
      Total International Package3,073 3,266 (193)(5.9)%
Consolidated19,093 20,257 (1,164)(5.7)%
Average Revenue Per Piece:
U.S. Domestic Package:
   Next Day Air$28.18 $25.06 $3.12 12.5 %
   Deferred21.35 19.47 1.88 9.7 %
   Ground12.25 11.46 0.79 6.9 %
      Total U.S. Domestic Package14.08 13.04 1.04 8.0 %
International Package:
   Domestic9.44 8.25 1.19 14.4 %
   Export36.32 31.87 4.45 14.0 %
      Total International Package23.80 20.73 3.07 14.8 %
Consolidated$15.65 $14.28 $1.37 9.6 %
Certain amounts are calculated based on unrounded numbers.

United Parcel Service, Inc.
Detail of Operating Expenses - Year to Date
(unaudited)
Six Months Ended
June 30,
20262025Change% Change
(in millions)
Compensation and benefits$24,199 $23,453 $746 3.2 %
Repairs and maintenance1,581 1,487 94 6.3 %
Depreciation and amortization1,965 1,848 117 6.3 %
Purchased transportation5,951 5,252 699 13.3 %
Fuel2,780 2,116 664 31.4 %
Other occupancy1,231 1,151 80 7.0 %
Other expenses4,132 3,972 160 4.0 %
Total operating expenses$41,839 $39,279 $2,560 6.5 %
Certain amounts are calculated based on unrounded numbers.

United Parcel Service, Inc.
Consolidated Balance Sheets
June 30, 2026 (unaudited) and December 31, 2025 (amounts in millions)

June 30,
2026		December 31,
2025
ASSETS
Current Assets:
Cash and cash equivalents$4,653 $5,887 
Accounts receivable, Net10,710 11,209 
Other current assets2,182 1,949 
 Total Current Assets17,545 19,045 
Property, Plant and Equipment, Net37,894 37,731 
Operating Lease Right-Of-Use Assets4,016 4,263 
Goodwill5,770 5,837 
Intangible Assets, Net3,954 4,021 
Deferred Income Tax Assets155 140 
Other Non-Current Assets1,933 2,053 
Total Assets $71,267 $73,090 
LIABILITIES AND SHAREOWNERS' EQUITY
Current Liabilities:
Current maturities of long-term debt and finance leases$634 $608 
Current maturities of operating leases729 763 
Accounts payable5,976 6,633 
Accrued wages and withholdings3,383 3,715 
Self-insurance reserves1,123 1,137 
Accrued group welfare and retirement plan contributions1,073 1,389 
Other current liabilities 1,963 1,375 
Total Current Liabilities14,881 15,620 
Long-Term Debt and Finance Leases23,850 23,519 
Non-Current Operating Leases3,460 3,700 
Pension and Postretirement Benefit Obligations6,341 6,567 
Deferred Income Tax Liabilities3,882 3,690 
Other Non-Current Liabilities3,754 3,739 
Shareowners' Equity:
Class A common stock1 1 
Class B common stock8 8 
Additional paid-in capital482 275 
Retained earnings18,830 20,151 
Accumulated other comprehensive loss(4,254)(4,208)
Deferred compensation obligations3 5 
Less: Treasury stock(3)(5)
Total Equity for Controlling Interests15,067 16,227 
Noncontrolling interests32 28 
Total Shareowners' Equity15,099 16,255 
Total Liabilities and Shareowners' Equity$71,267 $73,090 
Certain amounts are calculated based on unrounded numbers.

United Parcel Service, Inc.
Statements of Consolidated Cash Flows
(In millions, unaudited)

Six Months Ended
June 30,
20262025
Cash Flows From Operating Activities:
Net income$1,468 $2,470 
Adjustments to reconcile net income to net cash from operating activities:
 Depreciation and amortization 1,965 1,848 
 Pension and postretirement benefit expense 429 514 
 Pension and postretirement benefit contributions (581)(921)
 Self-insurance reserves 105 169 
 Deferred tax (benefit) expense
144 (84)
 Stock compensation expense
58 16 
 Other (gains) losses
90 64 
Changes in assets and liabilities, net of effects of business acquisitions:
 Accounts receivable 330 540 
 Other assets (272)(140)
 Accounts payable (302)(442)
 Accrued wages and withholdings (306)(447)
 Other liabilities (44)(909)
Other operating activities(1)(12)
 Net cash from operating activities 3,083 2,666 
Cash Flows From Investing Activities:
Capital expenditures(1,724)(1,999)
Proceeds from disposal of businesses, property, plant and equipment198 91 
Purchases of marketable securities— (90)
Sales and maturities of marketable securities— 205 
Acquisitions, net of cash acquired— (479)
Other investing activities16 (6)
Net cash used in investing activities
(1,510)(2,278)
Cash Flows From Financing Activities:
Proceeds from long-term borrowings— 4,153 
Repayments of long-term borrowings(85)(1,062)
Purchases of common stock— (1,000)
Issuances of common stock60 102 
Dividends(2,708)(2,697)
Other financing activities(24)(15)
Net cash used in financing activities(2,757)(519)
Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash(50)213 
Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash (1,234)82 
Cash, Cash Equivalents and Restricted Cash:
Beginning of period5,887 6,112 
End of period$4,653 $6,194 
Certain amounts are calculated based on unrounded numbers.

United Parcel Service, Inc.
Reconciliation of Free Cash Flow (Non-GAAP measure)
(In millions, unaudited)

Six Months Ended
June 30,
20262025
Cash flows from operating activities$3,083 $2,666 
Capital expenditures(1,724)(1,999)
Proceeds from disposals of property, plant and equipment198 91 
Other investing activities16 (16)
   Free Cash Flow (Non-GAAP measure)$1,573 $742 
Certain amounts are calculated based on unrounded numbers.

United Parcel Service, Inc.
Reconciliation of GAAP and Non-GAAP Adjusted Measures
(unaudited)
Three Months Ended
June 30,
(amounts in millions)2026202520262025
Operating Profit (GAAP)$930 $1,822 Operating Margin (GAAP)4.1 %8.6 %
Transformation Strategy Costs:Transformation Strategy Costs:
Transformation 2.0— (3)Transformation 2.0— — %
Fit to Serve— 9 Fit to Serve— %— %
Network Reconfiguration and Efficiency Reimagined1,172 68 Network Reconfiguration and Efficiency Reimagined5.1 %0.3 %
Total Transformation Strategy Costs1,172 74 Total Transformation Strategy Costs5.1 %0.3 %
Loss (Gain) on Divestiture (1)
— (20)
Loss (Gain) on Divestiture (1)
— %(0.1)%
Non-GAAP Adjusted Operating Profit$2,102 $1,876 Non-GAAP Adjusted Operating Margin9.2 %8.8 %
(1) Reflects pre-tax gain of $20 million on the divestiture of a business within Supply Chain Solutions in 2025.
Certain amounts are calculated based on unrounded numbers.

United Parcel Service, Inc.
Reconciliation of GAAP and Non-GAAP Adjusted Measures
(unaudited)
Three Months Ended
June 30,
(amounts in millions)2026202520262025
Income Before Income Taxes (GAAP)$761 $1,662 Income Tax Expense (GAAP)$157 $379 
Transformation Strategy Costs:Transformation Strategy Costs:
Transformation 2.0— (3)Transformation 2.0— (1)
Fit to Serve— 9 Fit to Serve— 2 
Network Reconfiguration and Efficiency Reimagined1,172 68 Network Reconfiguration and Efficiency Reimagined281 16 
Total Transformation Strategy Costs1,172 74 Total Transformation Strategy Costs281 17 
Loss (Gain) on Divestiture (1)
— (20)
Loss (Gain) on Divestiture (1)
— (5)
Reversal of Income Tax Valuation Allowance (2)
— 13 
Non-GAAP Adjusted Income Before Income Taxes$1,933 $1,716 Non-GAAP Adjusted Income Tax Expense$438 $404 
(1) Reflects pre-tax gain of $20 million on the divestiture of a business within Supply Chain Solutions in 2025.
(2) Reflects the partial reversal of an income tax valuation allowance in 2025.
Certain amounts are calculated based on unrounded numbers.

United Parcel Service, Inc.
Reconciliation of GAAP and Non-GAAP Adjusted Measures
(unaudited)
Three Months Ended
June 30,
(amounts in millions)2026202520262025
Net Income (GAAP)$604 $1,283 Diluted Earnings Per Share (GAAP)$0.71 $1.51 
Transformation Strategy Costs:Transformation Strategy Costs:
Transformation 2.0— (2)Transformation 2.0— — 
Fit to Serve— 7 Fit to Serve— 0.01
Network Reconfiguration and Efficiency Reimagined891 52 Network Reconfiguration and Efficiency Reimagined1.050.07
Total Transformation Strategy Costs891 57 Total Transformation Strategy Costs1.050.08
Loss (Gain) on Divestiture (1)
— (15)
Loss (Gain) on Divestiture (1)
— (0.02)
Reversal of Income Tax Valuation Allowance (2)
— (13)
Reversal of Income Tax Valuation Allowance (2)
— (0.02)
Non-GAAP Adjusted Net Income$1,495 $1,312 Non-GAAP Adjusted Diluted Earnings Per Share$1.76 $1.55 
(1) Reflects pre-tax gain of $20 million on the divestiture of a business within Supply Chain Solutions in 2025.
(2) Reflects the partial reversal of an income tax valuation allowance in 2025.
Certain amounts are calculated based on unrounded numbers.

United Parcel Service, Inc.
Reconciliation of GAAP and Non-GAAP Adjusted Measures by Segment
(unaudited)

Three Months Ended
June 30,
202620252026202520262025
U.S. Domestic PackageOperating Expenses% ChangeOperating Profit% ChangeOperating Margin
GAAP$14,914 $13,167 13.3 %$16 $916 (98.3)%0.1 %6.5 %
Adjusted for:
Transformation Strategy Costs(1,172)(66)1,172 66 7.9 %0.5 %
Non-GAAP Adjusted Measure$13,742 $13,101 4.9 %$1,188 $982 21.0 %8.0 %7.0 %
202620252026202520262025
International PackageOperating Expenses% ChangeOperating Profit% ChangeOperating Margin
GAAP$4,421 $3,813 15.9 %$623 $672 (7.3)%12.4 %15.0 %
Adjusted for:
Transformation Strategy Costs— (10)— 10 — %0.2 %
Non-GAAP Adjusted Measure$4,421 $3,803 16.3 %$623 $682 (8.7)%12.4 %15.2 %
202620252026202520262025
Supply Chain SolutionsOperating Expenses% ChangeOperating Profit% ChangeOperating Margin
GAAP$2,569 $2,419 6.2 %$291 $234 24.4 %10.2 %8.8 %
Adjusted for:
Transformation Strategy Costs— 2 — (2)— %(0.1)%
Loss (Gain) on Divestiture— 20 — (20)— %(0.7)%
Non-GAAP Adjusted Measure$2,569 $2,441 5.2 %$291 $212 37.3 %10.2 %8.0 %

Certain amounts are calculated based on unrounded numbers.

United Parcel Service, Inc.
Reconciliation of GAAP and Non-GAAP Adjusted Measures - U.S. Domestic Cost Per Piece
(unaudited)

Three Months Ended
June 30,
20262025% Change
Operating Days64 64 
Average Daily U.S. Domestic Package Volume (in thousands)16,002 16,553 
U.S. Domestic Package Cost Per Piece (GAAP)$14.23 $12.18 16.8 %
Transformation Strategy Costs(1.14)(0.06)
U.S. Domestic Package Non-GAAP Adjusted Cost Per Piece$13.09 $12.12 8.0 %

Note: Cost per piece excludes expense associated with cargo and other activity.
Certain amounts are calculated based on unrounded numbers.

United Parcel Service, Inc.
Reconciliation of GAAP and Non-GAAP Adjusted Measures
(unaudited)
Six Months Ended
June 30,
(amounts in millions)2026202520262025
Operating Profit (GAAP)$2,197 $3,488 Operating Margin (GAAP)5.0 %8.2 %
Transformation Strategy Costs:Transformation Strategy Costs:
Transformation 2.0 — 13 Transformation 2.0 — %— %
Fit to Serve— 28 Fit to Serve— %0.1 %
Network Reconfiguration and Efficiency Reimagined1,227 91 Network Reconfiguration and Efficiency Reimagined2.8 %0.2 %
Total Transformation Strategy Costs1,227 132 Total Transformation Strategy Costs2.8 %0.3 %
Loss (Gain) on Divestiture (1)
— 19 
Loss (Gain) on Divestiture (1)
— %— %
Non-GAAP Adjusted Operating Profit$3,424 $3,639 Non-GAAP Adjusted Operating Margin7.8 %8.5 %
(1) Reflects a pre-tax net loss of $19 million on the divestiture of a business within Supply Chain Solutions in 2025.
Certain amounts are calculated based on unrounded numbers.

United Parcel Service, Inc.
Reconciliation of GAAP and Non-GAAP Adjusted Measures
(unaudited)
Six Months Ended
June 30,
(amounts in millions)20262025(amounts in millions)20262025
Other Income (Expense) (GAAP)$(312)$(303)Income Before Income Taxes (GAAP)$1,885 $3,185 
Goodwill and Asset Impairment Charges (2)
— 19 Transformation Strategy Costs:
Transformation 2.0 — 13 
Non-GAAP Adjusted Other Income (Expense)$(312)$(284)
Fit to Serve— 28 
Network Reconfiguration and Efficiency Reimagined1,227 91 
Total Transformation Strategy Costs1,227 132 
Loss (Gain) on Divestiture (1)
— 19 
Goodwill and Asset Impairment Charges (2)
— 19 
Non-GAAP Adjusted Income Before Income Taxes$3,112 $3,355 
(1) Reflects a pre-tax net loss of $19 million on the divestiture of a business within Supply Chain Solutions in 2025.
(2) Reflects the write-down of an equity investment in 2025.
Certain amounts are calculated based on unrounded numbers.

United Parcel Service, Inc.
Reconciliation of GAAP and Non-GAAP Adjusted Measures
(unaudited)

Six Months Ended
June 30,
(amounts in millions)20262025
Income Tax Expense (GAAP)$417 $715 
Transformation Strategy Costs:
Transformation 2.0 — 3 
Fit to Serve— 6 
Network Reconfiguration and Efficiency Reimagined294 22 
Total Transformation Strategy Costs294 31 
Loss (Gain) on Divestiture (1)
— 4 
Reversal of Income Tax Valuation Allowance (3)
— 23 
Non-GAAP Adjusted Income Tax Expense$711 $773 
(1) Reflects a pre-tax net loss of $19 million on the divestiture of a business within Supply Chain Solutions in 2025.
(3) Reflects the partial reversal of an income tax valuation allowance in 2025.



Certain amounts are calculated based on unrounded numbers.

United Parcel Service, Inc.
Reconciliation of GAAP and Non-GAAP Adjusted Measures
(unaudited)

Six Months Ended
June 30,
(amounts in millions)2026202520262025
Net Income (GAAP)$1,468 $2,470 Diluted Earnings Per Share (GAAP)$1.73 $2.91 
Transformation Strategy Costs:Transformation Strategy Costs:
Transformation 2.0 — 10 Transformation 2.0 — 0.01 
Fit to Serve— 22 Fit to Serve— 0.03 
Network Reconfiguration and Efficiency Reimagined933 69 Network Reconfiguration and Efficiency Reimagined1.09 0.08 
Total Transformation Strategy Costs933 101 Total Transformation Strategy Costs1.09 0.12 
Loss (Gain) on Divestiture (1)
— 15 
Loss (Gain) on Divestiture (1)
— 0.02 
Goodwill and Asset Impairment Charges (2)
— 19 
Goodwill and Asset Impairment Charges (2)
— 0.02 
Reversal of Income Tax Valuation Allowance (3)
— (23)
Reversal of Income Tax Valuation Allowance (3)
— (0.03)
Non-GAAP Adjusted Net Income$2,401 $2,582 Non-GAAP Adjusted Diluted Earnings Per Share$2.82 $3.04 
(1) Reflects a pre-tax net loss of $19 million on the divestiture of a business within Supply Chain Solutions in 2025.
(2) Reflects the write-down of an equity investment in 2025.
(3) Reflects the partial reversal of an income tax valuation allowance in 2025.
Certain amounts are calculated based on unrounded numbers.

United Parcel Service, Inc.
Reconciliation of GAAP and Non-GAAP Adjusted Measures by Segment
(unaudited)
Six Months Ended
June 30,
202620252026202520262025
U.S. Domestic PackageOperating Expenses% ChangeOperating Profit% ChangeOperating Margin
GAAP$28,524 $26,648 7.0 %$531 $1,895 (72.0)%1.8 %6.6 %
Adjusted for:
Transformation Strategy Costs(1,222)(98)1,222 98 4.2 %0.4 %
Non-GAAP Adjusted Measure$27,302 $26,550 2.8 %$1,753 $1,993 (12.0)%6.0 %7.0 %
202620252026202520262025
International PackageOperating Expenses% ChangeOperating Profit% ChangeOperating Margin
GAAP$8,414 $7,545 11.5 %$1,170 $1,313 (10.9)%12.2 %14.8 %
Adjusted for:
Transformation Strategy Costs(4)(23)4 23 — %0.3 %
Non-GAAP Adjusted Measure$8,410 $7,522 11.8 %$1,174 $1,336 (12.1)%12.2 %15.1 %
202620252026202520262025
Supply Chain SolutionsOperating Expenses% ChangeOperating Profit% ChangeOperating Margin
GAAP$4,901 $5,086 (3.6)%$496 $280 77.1 %9.2 %5.2 %
Adjusted for:
Transformation Strategy Costs(1)(11)1 11 — %0.2 %
Loss (Gain) on Divestiture— (19)— 19 0.4 %
Non-GAAP Adjusted Measure$4,900 $5,056 (3.1)%$497 $310 60.3 %9.2 %5.8 %

Certain amounts are calculated based on unrounded numbers.

United Parcel Service, Inc.
Reconciliation of GAAP and Non-GAAP Adjusted Measures - U.S. Domestic Cost Per Piece
(unaudited)

Six Months Ended
June 30,
20262025% Change
Operating Days126 126 
Average Daily U.S. Domestic Package Volume (in thousands)16,020 16,991 
U.S. Domestic Package Cost Per Piece (GAAP)$13.82 $12.20 13.3 %
Transformation Strategy Costs(0.61)(0.05)
U.S. Domestic Package Non-GAAP Adjusted Cost Per Piece$13.21 $12.15 8.7 %

Note: Cost per piece excludes expense associated with cargo and other activity.
Certain amounts are calculated based on unrounded numbers.

United Parcel Service, Inc.
Aircraft Fleet - As of June 30, 2026
(unaudited)

DescriptionUPS Owned and/or OperatedCharters & Leases Operated by OthersOn OrderUnder Option
Boeing 757-20075 — — — 
Boeing 767-30094 — 13 — 
Boeing 767-300BCF6 — — — 
Boeing 767-300BDSF4 — — — 
Airbus A300-60052 — — — 
Boeing 747-400F11 — — — 
Boeing 747-400BCF2 — — — 
Boeing 747-8F30 — — — 
Other— 213 — — 
          Total274 213 13 — 

































Certain amounts are calculated based on unrounded numbers.

Source: View Original Filing on SEC EDGAR

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