United Parcel Service, Inc. (NYSE:UPS) reported fourth-quarter 2025 results on Tuesday, posting revenue of $24.5 billion and operating profit of $2.6 billion. Non-GAAP adjusted operating profit totaled $2.9 billion.
Shares were trading higher following the release as the company topped Wall Street expectations and issued full-year 2026 guidance.
Earnings And Key Items
Diluted GAAP earnings per share were $2.10, while non-GAAP adjusted diluted EPS was $2.38. The company said results “outperformed our financial expectations in the fourth quarter.”
United Parcel Service reported adjusted EPS of $2.38, beating the $2.20 estimate, while revenue of $24.500 billion topped the $24.003 billion estimate.
GAAP results for the quarter included total charges of $238 million, or 28 cents per diluted share. These included a $137 million after-tax non-cash charge related to the write-off of the MD-11 aircraft fleet and $101 million of after-tax transformation charges. UPS accelerated its fleet modernization plans, completing the retirement of its MD-11 fleet during the fourth quarter.
UPS declared a first-quarter 2026 dividend of $1.64 per share, payable March 5, 2026, to shareowners of record on February 17, 2026. The company also said it returned $6.4 billion to shareholders during 2025 through dividends and share repurchases.
Segment Performance
In U.S. Domestic, revenue totaled $16.756 billion, down from $17.312 billion a year earlier. UPS said revenue declined 3.2%, “primarily driven by an expected decline in volume,” while revenue per piece increased 8.3%. Operating margin was 8.5%, with a non-GAAP adjusted operating margin of 10.2%.
International revenue rose to $5.045 billion from $4.923 billion, driven by a 7.1% increase in revenue per piece. Operating margin was 17.5%, and non-GAAP adjusted operating margin was 18.0%.
Supply Chain Solutions revenue declined to $2.678 billion from $3.066 billion. UPS said revenue fell 12.7%, “primarily due to a decline in volume in the Mail Innovations business.” Operating margin was 9.8%, with a non-GAAP adjusted operating margin of 10.3%.
Full-Year Results
For full-year 2025, UPS reported revenue of $88.7 billion, operating profit of $7.9 billion, and non-GAAP adjusted operating profit of $8.7 billion. Operating margin was 8.9%, and non-GAAP adjusted operating margin was 9.8%.
GAAP diluted EPS totaled $6.56, while non-GAAP adjusted diluted EPS was $7.16. Cash from operations totaled $8.5 billion, and non-GAAP adjusted free cash flow was $5.5 billion.
CEO Carol Tomé said, “2025 was a year of considerable progress for UPS as we took action to strengthen our revenue quality and build a more agile network. Looking ahead, upon completion of the Amazon glide-down, 2026 will be an inflection point in the execution of our strategy to deliver growth and sustained margin expansion.”
Outlook
For 2026, UPS forecasts revenue of about $89.7 billion, above the $87.938 billion analyst estimate, and a non-GAAP adjusted operating margin of about 9.6%.
The company said it plans capital expenditures of about $3.0 billion and expects dividend payments of around $5.4 billion, subject to board approval, with an effective tax rate of approximately 23.0%.
In its forward-looking statements, UPS cited risks including “new or increased tariffs” and “increasingly stringent regulations related to climate change,” among other factors.
UPS Price Action: United Parcel Service shares were up 2.70% at $109.86 during premarket trading on Tuesday, according to Benzinga Pro data.
Photo by MikeDotta via Shutterstock
