| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 77 | 18.6x | 17.8x | Top tier | |
Growth | 16 | -0.4% | 7.1% | Bottom tier | |
Quality | 68 | 12.0% | 4.5% | Top tier | |
Safety | 54 | 2.4x | 2.6x | Around median | |
Capital Return | 72 | 6.33% | 2.12% | Top tier | |
Momentum | 57 | 24.2% | 2.9% | Around median | |
Sentiment | 74 | 17 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
United Parcel Service operates an integrated global logistics network that generates revenue from three main segments: U.S. Domestic Package, International Package, and Supply Chain Solutions. Its model relies on air and ground package transportation, freight, warehousing, and healthcare logistics, alongside digital platforms such as DAP and services including Roadie and Happy Returns; the company is improving its revenue mix by focusing on small and medium-sized businesses, B2B customers, and healthcare rather than lower-yield volumes.
In fiscal Q2 2026, consolidated revenue increased 7.6% year over year to $22.8 billion, operating profit rose 12% to $2.1 billion, and diluted earnings per share reached $1.76. The consolidated operating margin expanded 40 basis points year over year and 300 basis points compared with fiscal Q1 2026 to 9.2%, although GAAP results included $891 million in after-tax transformation costs primarily related to workforce reductions under the Driver Choice program.
The U.S. Domestic business was the largest contributor in fiscal Q2 2026, with revenue of $14.9 billion, operating profit of $1.2 billion, and a margin of 8%, while the International segment recorded revenue of $5 billion, operating profit of $623 million, and a margin of 12.4%. The Supply Chain Solutions segment generated revenue of $2.9 billion, operating profit of $291 million, and a margin of 10.2%, up 220 basis points year over year; healthcare revenue also exceeded $3 billion for the second consecutive quarter, and global DAP revenue reached $1.4 billion.
The analyst consensus on UPS is neutral, with an average price target of $119 and a wide range between $76 and $132. The average target is below the 52-week range high of $122.41 and significantly above its low of $82, while the breadth of analyst targets reveals a fundamental divergence in assessing the impact of the network reconfiguration versus the risks of weak volumes, tariffs, and competition.
Figures in the text are as of 2026-09-02; the live price is shown at the top of the page.
Consolidated revenue increased 7.6% to $22.8 billion, operating profit rose 12% to $2.1 billion, and the operating margin reached 9.2%. The U.S. Domestic business was the primary driver, as its operating profit grew 21% to $1.2 billion and its margin expanded to 8%. Base pricing, an improved customer mix, and productivity following the network reconfiguration helped revenue per package grow 9.3% and exceed cost-per-package growth by 130 basis points.
UPS removed approximately 2 million packages per day of lower-quality Amazon volume and reduced expenses associated with the plan by approximately $4.5 billion over the 18-month implementation period through fiscal Q2 2026. Amazon still represented 9% of total revenue, down approximately 100 basis points from the prior year and below the level that exceeded 13% during the pandemic year referenced in the call. Management expects the comparison effect on volumes to continue during the first half of fiscal 2027, but believes the lower-cost network gives incremental packages better economics.
UPS generated more than $3 billion in healthcare revenue in fiscal Q2 2026, for the second consecutive quarter. The company added 27 temperature-controlled cross-dock facilities to move complex products between air and ground services while maintaining temperature, and said its cold chain business and revenue per kilogram are growing at double-digit rates. On August 24, 2026, it disclosed that investments in international, healthcare, and supply chain businesses would exceed $2 billion during the period from 2024 to 2028.
Automated analysis for informational purposes only — not investment advice.
Average daily volume from small and medium-sized businesses grew 4.3% in fiscal Q2 2026, and their share of domestic volume increased 250 basis points to 34.5%. Average daily B2B volume through DAP increased 34%, and global DAP revenue reached $1.4 billion, exceeding $1 billion for the third consecutive quarter. However, total domestic average daily volume remained down 3.3% due to the Amazon reduction and actions to shed other low-yield volumes.
All U.S. delivery facilities and package vehicles were fully enabled with RFID sensing technology by fiscal Q2 2026, and packages shipped from 5,500 UPS Stores also became enabled with this technology. The company uses data generated from billions of package movements within an artificial intelligence-powered digital twin to improve planning, routing, and execution according to network conditions. By the end of the quarter, 68.5% of domestic volume passed through automated facilities, and management estimates that the cost per package in those facilities is approximately 28% lower than in non-automated facilities.
Management expects consolidated revenue of approximately $91.2 billion, operating profit of approximately $8.65 billion, and diluted earnings per share of approximately $7.22 in fiscal 2026. The outlook includes U.S. Domestic revenue of approximately $60 billion and a margin of approximately 7.5%, with mid-single-digit international growth and an international margin in the mid-teens. The company also expects free cash flow of approximately $5.5 billion, capital expenditures of approximately $3 billion, and dividends of approximately $5.4 billion, subject to board approval.
