UPS Filings — United Parcel Service, Inc - FilingSpy
UPS
United Parcel Service, Inc
A global package delivery and logistics company moving parcels across the globe, UPS handles time-definite air and ground shipping plus healthcare logistics that keep temperature-sensitive medicines moving through its cold chain. Its U.S. Domestic Package segment offers Ground Saver for lightweight residential shipments, while Supply Chain Solutions covers forwarding, customs brokerage, and digital logistics. Hundreds of thousands of people work for the company worldwide, with most U.S. employees unionized under a Teamsters agreement.
UPS Q2 2026 operating profit fell 49% to $930M as $1.1B in Driver Choice Program separation costs overwhelmed a 7.6% revenue increase.
A $1.1 billion charge for a voluntary driver separation program cut in half. rose 7.6% to $22.8 billion, driven by higher fuel surcharges and pricing, but contracted to 4.1% and fell 53% to $0.71. The quarter marks the cost of reshaping the workforce ahead of the final Amazon volume cut.
Key takeaways
fell 49% to $930M and contracted 4.5 points to 4.1%, driven by $1.1B in employee separation costs from the Driver Choice Program, a voluntary separation initiative.
rose 7.6% to $22.8B, with U.S. Domestic Package up 6.0% on a 9.3% increase in revenue per piece from fuel surcharges and pricing actions, while average daily package volume fell 3.3% from planned largest-customer reductions.
International Package grew 12.5% as revenue per piece rose 18.9% from fuel surcharges and favorable trade lane shifts, though volume declined 5.8% led by EMEA.
Section summaries
Management's Discussion and Analysis
Q2 2026 revenue rose 7.6% to $22.8B, but operating profit fell 49% to $930M on $1.1B in Driver Choice Program separation costs.
⌄
Consolidated grew 7.6% to $22.8B, driven by higher fuel surcharges, revenue quality actions, and the AHG acquisition, partially offset by a 3.7% decline in average daily package volume.
Supply Chain Solutions rose 7.8%, with healthcare logistics growth from the acquisition offsetting a $186M decline in .
fell 53% to $0.71 and dropped 52.9% to $604M; was $859M, up 146.8% from a low base of $348M in Q2 2025.
The company expects ~$3B in full-year 2026 benefits from and initiatives and plans ~$3.0B in .
What changed
Q1 2026 flagged U.S. Domestic volume against the ~8.0% Q1 drop as the >50% largest-customer cut approached its June 2026 deadline: Q2 volume fell 3.3%, a shallower decline than Q1's 8.0%, suggesting the planned reduction is nearing completion.
Q1 2026 flagged Q2 after the 6.0% Q1 level: margin fell further to 4.1%, but the decline was driven by the $1.1B Driver Choice Program charge rather than the operating cost pressures that dominated Q1.
Q1 2026 flagged International Package after the 6.0% Q1 volume decline on China-to-U.S. lanes: Q2 volume fell 5.8% and per piece rose 18.9%, but the filing does not break out International separately for the quarter.
The $1.1B Driver Choice Program separation cost is a new development not flagged in prior filings, representing a workforce that did not appear in the Q1 2026 or FY 2025 narratives.
What to watch
Q3 2026 U.S. Domestic Package volume and per piece after the >50% largest-customer cut is completed, to see whether pricing gains hold without the offsetting volume drag.
Q3 2026 excluding the Driver Choice Program charge, to assess whether the underlying cost structure improves toward the ~$3B in 2026 savings.
Full-year 2026 against the $4.8B 2025 result as is planned at ~$3.0B and separation costs land.
International Package in Q3 2026 after the 18.9% -per-piece increase in Q2, to see whether trade lane shifts continue to support pricing.
dropped 49% to $930M, with contracting 450 to 4.1%, primarily due to $1.1B in employee separation costs from the Driver Choice Program.
U.S. Domestic Package increased 6.0% on a 9.3% rise in revenue per piece, while volume fell 3.3% due to planned reductions from the largest customer and lower-yielding e-commerce actions.
International Package grew 12.5%, with revenue per piece up 18.9% from fuel surcharges and favorable trade lane shifts, while volume declined 5.8% led by EMEA.
Supply Chain Solutions rose 7.8%, with healthcare logistics growth from the AHG acquisition offsetting a $186M decline in .
The company expects ~$3B in full-year 2026 benefits from and initiatives and plans ~$3.0B in .
Quantitative and Qualitative Disclosures About Market Risk
There have been no material changes in market risk from the information provided in "Item 7A. Quantitative and Qualitative Disclosures About Market Risk" in our Form 10-K. 49 Table of Contents
⌄
There have been no material changes in market risk from the information provided in "Item 7A. Quantitative and Qualitative Disclosures About Market Risk" in our Form 10-K.
49
Table of Contents
For a discussion of material legal proceedings affecting the Company, see note 10 to the unaudited, consolidated financial statements included in this report.
⌄
For a discussion of material legal proceedings affecting the Company, see note 10 to the unaudited, consolidated financial statements included in this report.
There have been no material changes to the risk factors described in Part 1, Item 1A in our Annual Report on Form 10-K for the year ended December 31, 2025. The occurrence of any of the risks described therein could materially affect us, including impacting our business, financi…
⌄
There have been no material changes to the risk factors described in Part 1, Item 1A in our Annual Report on Form 10-K for the year ended December 31, 2025. The occurrence of any of the risks described therein could materially affect us, including impacting our business, financial condition, results of operations, stock price or credit rating, as well as our reputation. These risks are not the only ones we face. We could also be materially adversely affected by other events, factors or uncertainties that are unknown to us, or that we do not currently consider to be material.
51
Table of Contents