United Parcel Service, Inc. · NYSE:UPS
United Parcel Service — Q2 2026 Earnings Presentation
28 slides from United Parcel Service's earnings presentation, Jul 28, 2026
Slide 1: 2Q26 Earnings Call
2Q26 Earnings Call July 28, 2026 1
Slide 2: UPS Speakers
UPS Speakers CAROL B. TOMÉ BRIAN DYKES PJ GUIDO Chief Executive Officer Chief Financial Officer Investor Relations Officer 2 © 2026 United Parcel Service of America, Inc. UPS, the UPS brandmark, and the color dark brown tone are trademarks of United Parcel Service of America, Inc. All rights reserve
Slide 3: Forward-Looking Statements and Non-GAAP Reconciliations
Forward-Looking Statements and Non-GAAP Reconciliations Forward-Looking Statements alliances; the effects of changing prices of energy, including gasoline, diesel, jet fuel, other fuels and interruptions in supplies of these commodities; changes in This presentation and our filings with the Securiti
Slide 4: Diluted EPS
Diluted EPS 2Q26 2Q25 $1.05 $1.76 $0.08 $1.55 $1.51 -$0.02 -$0.02 $0.71 2Q26 EPS Transformation 2Q26 Non-GAAP 2Q25 EPS Loss on Divestiture Transformation Reversal of Income 2Q25 Non-GAAP Strategy Adj. EPS* Strategy Tax Allowance Adj. EPS* Costs** Costs** *Non-GAAP adjusted financial measure. See App
Slide 5: Carol B. Tomé, Chief Executive Officer
CAROL B. TOMÉ Chief Executive Officer © 2026 United Parcel Service of America, Inc. UPS, the UPS brandmark, and the color dark brown tone are trademarks of United Parcel Service of America, Inc. All rights reserved. 5
Slide 6: Thank You UPSers for All You Do
THANK YOU UPSERS FOR ALL YOU DO © 2026 United Parcel Service of America, Inc. UPS, the UPS brandmark, and the color dark brown tone are trademarks of United Parcel Service of America, Inc. All rights reserved. 6
Slide 7: 2Q financial results demonstrate successful execution of key initiatives
Our 2Q financial results demonstrate the successful execution of key initiatives and HEADLINE the strength of our underlying business 2Q26 Consolidated Results “All three segments contributed to our 2Q26 2Q25 Change Y/Y strong second-quarter revenue Revenue ($ Ms) $22,834 $21,221 7.6% performance. A
Slide 8: RFID + AI is the intersection of the physical and digital worlds
RFID + AI is the intersection of the physical and digital worlds Driving greater efficiency, reliability, visibility and a premium customer experience • Moving from a scanning to a sensing network, eliminating hundreds of millions of manual scans every year • Expanding RFID internationally • Enablin
Slide 9: Next phase of our strategy is straightforward
HEADLINE Next phase of our strategy is straightforward Focused on premium volume growth SMB and Digital Access Program (DAP) • SMB ADV +4.3% Y/Y • DAP revenue $1B+ for third consecutive quarter Healthcare • Generated $3B+ revenue for second consecutive quarter • Added 27 temperature-controlled cross
Slide 10: Full-year 2026 Consolidated Guidance
Entering the second half of the year with momentum Given our strong 1H performance, we are increasing our full-year 2026 outlook Full-year 2026 Consolidated Guidance Revenue ~$91.2B Non-GAAP adj. operating profit* ~$8.65B Non-GAAP adj. diluted EPS* ~$7.22 *Non-GAAP adjusted financial measure. See Ap
Slide 11: Brian Dykes, Chief Financial Officer
BRIAN DYKES Chief Financial Officer © 2026 United Parcel Service of America, Inc. UPS, the UPS brandmark, and the color dark brown tone are trademarks of United Parcel Service of America, Inc. All rights reserved. 11
Slide 12: U.S. Domestic: Focused on revenue quality and premium parts of the market
U.S. U.S. Domestic Domestic Focused on revenue quality and premium parts of the market SMB ADV up 4.3% Y/Y, with growth from nearly all industries, led by high tech and healthcare ADV Change (-3.3% Y/Y) SMB % of Total Volume (Y/Y) 34.5% 34.5% 16,553 16,002 -18 -33 32.8% -500 32.0% 31.2% 31.2% ADV in
Slide 13: U.S. Domestic: Generated $14.9B in revenue, up 6.0% Y/Y
U.S. Domestic Generated $14.9B in revenue, an increase of 6.0% Y/Y Driven by strong RPP growth Revenue Change (+6.0% Y/Y) $1.2B $0.1B $14.9B $14.1B -$0.5B Revenue per piece (RPP) increased 9.3% Y/Y: • Over half of RPP growth driven by healthy base rates and customer mix improvements • Fuel contribut
Slide 14: U.S. Domestic: Delivered $1.2B in non-GAAP adj. operating profit
U.S. Domestic HEADLINE Delivered $1.2B in non-GAAP adj. operating profit*, up 21.0% Y/Y More than double the non-GAAP adj. operating profit* delivered in 1Q26 • Total non-GAAP adj. operating expense* increased 4.9% Y/Y 2Q26 U.S. Domestic Results • More than half of the increase came 2Q26 2Q25 Change
Slide 15: International: Returned to Y/Y volume growth on the China-to-US lane
International Returned to Y/Y volume growth on the China-to-US lane Total Asia* Monthly ADV (Y/Y) Total Europe Monthly ADV (Y/Y) 30.0% 15.0% 20.0% 10.0% 5.0% 10.0% 0.0% 0.0% -5.0% -10.0% -10.0% -20.0% -15.0% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov
Slide 16: International: Increased revenue 12.5% Y/Y
International HEADLINE Increased revenue 12.5% Y/Y, driven by strong revenue-per-piece growth • Improvement in geographic mix as trade 2Q26 International Results lanes began to rebalance, particularly in 2Q26 2Q25 Change Y/Y Asia Revenue ($ Ms) $5,044 $4,485 12.5% • Revenue per piece increased 18.9%
Slide 17: Supply Chain Solutions: Second quarter of strong operating profit growth
Supply Chain Solutions HEADLINE Second quarter in a row of strong non-GAAP adj. operating profit growth Y/Y • Forwarding revenue up 8.1% Y/Y, driven by higher rates in International Air Freight 2Q26 Supply Chain Solutions Results • Logistics revenue up 4.3% Y/Y, driven by 2Q26 2Q25 Change Y/Y strong
Slide 18: Strong YTD cash flow and liquidity
Strong YTD cash flow and liquidity • $3.1B in cash from operations • Free cash flow of $1.6B, including one-time payments made in 2Q26 for the Driver Choice Program • $4.7B in cash on the balance sheet and no outstanding commercial paper • Dividends paid of $2.7B 18
Slide 19: Increasing our full-year 2026 outlook
Given our strong first-half results, we are increasing our full-year 2026 outlook • Revenue ~$91.2B • Non-GAAP adj. operating profit* ~$8.65B • Non-GAAP adj. diluted EPS* ~$7.22 Full Year 2026 Consolidated Guidance • Capital expenditures ~$3.0B • Pension contribution $1.3B • Free cash flow* includin
Slide 20: Questions & Answers
Questions & Answers 20
Slide 21: Appendix
Appendix 21
Slide 22: Reconciliation of GAAP and Non-GAAP Financial Measures
Reconciliation of GAAP and Non-GAAP Financial Measures Reconciliation of GAAP and Non-GAAP Adjusted Financial Measures As a part of these initiatives, we expect non-GAAP adjusted operating expense to exclude between $1.3 and $1.5 billion We supplement the reporting of our financial information deter
Slide 23: Reconciliations
Reconciliations © 2026 United Parcel Service of America, Inc. UPS, the UPS brandmark, and the color dark brown tone are trademarks of United Parcel Service of America, Inc. All rights reserved. 23
Slide 24: Reconciliations
Reconciliations © 2026 United Parcel Service of America, Inc. UPS, the UPS brandmark, and the color dark brown tone are trademarks of United Parcel Service of America, Inc. All rights reserved. 24
Slide 25: Reconciliations
Reconciliations © 2026 United Parcel Service of America, Inc. UPS, the UPS brandmark, and the color dark brown tone are trademarks of United Parcel Service of America, Inc. All rights reserved. 25
Slide 26: Reconciliations
Reconciliations © 2026 United Parcel Service of America, Inc. UPS, the UPS brandmark, and the color dark brown tone are trademarks of United Parcel Service of America, Inc. All rights reserved. 26
Slide 27: Reconciliations
Reconciliations © 2026 United Parcel Service of America, Inc. UPS, the UPS brandmark, and the color dark brown tone are trademarks of United Parcel Service of America, Inc. All rights reserved. 27
Slide 28: Reconciliations
Reconciliations © 2026 United Parcel Service of America, Inc. UPS, the UPS brandmark, and the color dark brown tone are trademarks of United Parcel Service of America, Inc. All rights reserved. 28
United Parcel Service — Q2 2026 Earnings Presentation on 6ix