UPS · 10-Q · 2026Q2

UNITED PARCEL SERVICE INC

Filed 2026-08-05 · Other · View original filing on EDGAR

Ranked Events

• Customer DynamicsImportance 84 · Surprise 100
  UPS completed the planned reduction of volume from its largest customer, cutting that customer's volume by more than 50% from 2024 levels. The reduction affected residential, commercial, air and ground shipments, with…
• Market Demand TrendsImportance 77 · Surprise 82
  UPS reduced volume from its largest customer by more than 50% from 2024 levels, completing the planned reduction during the second quarter of 2026. Global small package average daily volume declined 3.7% in the quarter…
• Interest Rate and Refinancing ExposureImportance 74 · Surprise 58
  UPS had $24.484 billion of total debt outstanding as of June 30, 2026 and no outstanding balances under its U.S. or European commercial paper programs. Average commercial-paper interest rates declined to 3.48% in the…
• Outstanding IndebtednessImportance 69 · Surprise 50
  UPS reported $24.484 billion of total debt outstanding at June 30, 2026, compared with $24.740 billion at June 30, 2025. The company made $85 million of debt-principal repayments in the first six months of 2026 and…
• Operating Cash Flow TrendsImportance 54 · Surprise 40
  Net cash from operating activities rose to $3.083 billion for the six months ended June 30, 2026, compared with $2.666 billion in the same period of 2025. Approximately $200 million of the increase resulted from the…
• Operating Expense TrendsImportance 54 · Surprise 40
  Consolidated operating expenses increased 12.9% to $21.904 billion in the second quarter and 6.5% to $41.839 billion in the first half of 2026. Purchased transportation rose $665 million in the quarter and $699 million…
• Trade Policy and TariffsImportance 53 · Surprise 60
  In February 2026, the U.S. Supreme Court invalidated certain tariffs imposed under the International Emergency Economic Powers Act (IEEPA). UPS filed for refunds and received U.S. Customs and Border Protection approval…
• Headcount / RestructuringImportance 52 · Surprise 42
  UPS is executing Network Reconfiguration and Efficiency Reimagined to automate and consolidate the U.S. Domestic Package network, redesign processes, and reduce facilities, vehicles, aircraft, and workforce. In the…
• Operating Margin DriversImportance 52 · Surprise 56
  Consolidated operating profit declined $892 million, or 49.0%, in the second quarter and $1.291 billion, or 37.0%, in the first half of 2026. Consolidated operating margin fell 450 basis points year over year to 4.1%…
• Revenue Performance and MixImportance 48 · Surprise 40
  Second-quarter 2026 revenue increased 7.6% year over year to $22.834 billion, while first-half revenue increased 3.0% to $44.036 billion. Average daily package volume decreased 3.7% in the quarter and 5.7% year to…
• Middle East Conflict ImpactImportance 46 · Surprise 42
  The Middle East conflict increased fuel, charter, aircraft, and network-disruption costs during the second quarter and first half of 2026. Domestic fuel surcharge revenue increased approximately $575 million in the…
• Capital Return ProgramImportance 42 · Surprise 14
  UPS paid $2.708 billion in dividends during the six months ended June 30, 2026, compared with $2.697 billion in the prior-year period. The company declared dividends of $3.28 per share for the six-month period and paid…
• Supply Chain ConstraintsImportance 40 · Surprise 42
  UPS experienced air-capacity constraints after permanently grounding and retiring its MD-11 fleet in the fourth quarter of 2025. The company used third-party leased aircraft and charter capacity to address the…
• Healthcare Logistics GrowthImportance 40 · Surprise 42
  UPS expanded healthcare logistics through the integration of Andlauer Healthcare Group (AHG) and investments in temperature-controlled cross-dock facilities. Healthcare logistics revenue increased $232 million in the…
• Liquidity and Cash PositionImportance 38 · Surprise 40
  As of June 30, 2026, UPS held $4.7 billion in cash, cash equivalents and marketable securities, including approximately $2.0 billion held by foreign subsidiaries. Net cash from operating activities increased $417…
• Product Launch and TransitionImportance 34 · Surprise 42
  UPS continued outsourcing last-mile delivery of a portion of its Ground Saver product to the United States Postal Service. The transition reduced UPS direct labor and stops but generated higher USPS fees and caused…
• Interest Rate PressureImportance 30 · Surprise 40
  Interest expense increased $34 million in the second quarter of 2026 and $78 million year to date, representing year-over-year increases of 14.3% and 17.0%, respectively. The increase was primarily caused by higher…
• Capital Expenditure ProgramImportance 30 · Surprise 40
  UPS reduced six-month 2026 capital expenditures by approximately 14% year over year, primarily because lower package volume reduced vehicle spending and aircraft deliveries under finance lease arrangements reduced…
• Geographic Market CommentaryImportance 29 · Surprise 32
  International Package volume weakness was concentrated primarily in Europe, the Middle East and Africa (EMEA). EMEA domestic standard shipments and intra-regional export movements declined, while U.S.-destination…
• Distribution ChannelsImportance 26 · Surprise 24
  UPS continued expanding indirect and digital access for SMB customers through its Digital Access Program (DAP). SMBs leveraging DAP generated continued volume growth in the U.S. Domestic Package network despite broader…

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