UPS

Let’s dig into the relative performance of United Parcel Service (NYSE:UPS) and its peers as we unravel the now-completed Q2 air freight and logistics earnings season. The growth of e-commerce and global trade continues to drive demand for expedited shipping services, presenting opportunities for air freight companies. The industry continues to invest in advanced technologies such as automated sorting systems and real-time tracking solutions to enhance operational efficiency. Despite the advantages of speed and global reach, air freight and logistics companies are still at the whim of economic cycles. Consumer spending, for example, can greatly impact the demand for these companies’ offerings while fuel costs can influence profit margins. The 4 air freight and logistics stocks we track reported a very strong Q2. As a group, revenues beat analysts’ consensus estimates by 10%. While some air freight and logistics stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 3.4% since the latest earnings results. Trademarking its recognizable UPS Brown color, UPS (NYSE:UPS) offers package delivery, supply chain management, and freight forwarding services. United Parcel Service reported revenues of $22.83 billion, up 7.6% year on year. This print exceeded analysts’ expectations by 4.4%. Overall, it was a very strong quarter for the company with full-year EPS and revenue guidance slightly topping analysts’ expectations. “I want to thank all UPSers for their extraordinary work over the past 18 months as we successfully completed our Amazon glide down and related network reconfiguration initiatives as designed,” said Carol Tomé, UPS chief executive officer. United Parcel Service delivered the slowest revenue growth of the whole group. Investor expectations, however, were likely higher than Wall Street’s published projections, leaving some wishing for even better results (analysts’ consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 7.8% since reporting and currently trades at $104.18. Is now the time to buy United Parcel Service? Access our full analysis of the earnings results here, it’s free. Expeditors (NYSE:EXPD) offers air and ocean freight as well as brokerage services. Expeditors reported revenues of $3.50 billion, up 32.1% year on year, outperforming analysts’ expectations by 18.6%. The business had a stunning quarter with a beat of analysts’ EPS estimates. Expeditors pulled off the biggest analyst estimate beat and fastest revenue growth among its peers. The market seems happy with the results as the stock is up 11.2% since reporting. It currently trades at $189.66. Is now the time to buy Expeditors? Access our full analysis of the earnings results here, it’s free. Sporting one of the largest air cargo fleets in the world, FedEx (NYSE:FDX) is a global provider of parcel and cargo delivery services. FedEx reported revenues of $25.01 billion, up 12.5% year on year, exceeding analysts’ expectations by 4.3%. Still, it was a mixed quarter as it posted full-year EPS guidance missing analysts’ expectations significantly. FedEx delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 3% since the results and currently trades at $327.77. Read our full analysis of FedEx’s results here. Engaging in contracts with tens of thousands of transportation companies, C.H. Robinson (NASDAQ:CHRW) offers freight transportation and logistics services. C.H. Robinson Worldwide reported revenues of $4.93 billion, up 19.3% year on year. This result topped analysts’ expectations by 12.7%. It was an exceptional quarter as it also produced a beat of analysts’ EPS estimates. The stock is down 13.9% since reporting and currently trades at $149.61. Read our full, actionable report on C.H. Robinson Worldwide here, it’s free. Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership. Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products. By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals. Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Growth Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

It has been about a month since the last earnings report for United Parcel Service (UPS). Shares have added about 1% in that time frame, underperforming the S&P 500. But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is UPS due for a pullback? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent catalysts for United Parcel Service, Inc. before we dive into how investors and analysts have reacted as of late. Quarterly adjusted earnings of $1.76 per share increased 13.5% year over year. The figure beat the Zacks Consensus Estimate of $1.65 by 6.7%. Revenues rose 7.6% to $22.83 billion and surpassed the consensus estimate of $21.75 billion by 5%. Growth across all three segments supported the top line, while International revenue per piece climbed 18.9%. U.S. Domestic Package revenues increased 6% year over year to $14.93 billion, driven by a 9.3% improvement in revenue per piece. Average daily package volume declined to 16 million from 16.6 million a year earlier, indicating that pricing more than offset lower shipment activity.Adjusted operating profit advanced 21% year over year to $1.19 billion. The adjusted operating margin expanded 100 basis points to 8%, even as adjusted cost per piece increased 8% to $13.09. The margin improvement reflects progress from UPS’ network reconfiguration and efficiency initiatives. International Package revenues increased 12.5% year over year to $5.04 billion. The segment delivered the strongest revenue growth among UPS’ operating businesses, aided by the sharp increase in revenue per piece.Adjusted operating profit declined 8.7% year over year to $623 million. The adjusted operating margin contracted to 12.4% from 15.2% in the prior-year quarter, showing that higher revenue did not translate into operating profit growth as segment expenses increased. Supply Chain Solutions revenues rose 7.8% year over year to $2.86 billion. The improvement was primarily driven by growth in forwarding and logistics operations, including the healthcare business.Adjusted operating profit increased 37.3% year over year to $291 million. The adjusted operating margin expanded 220 basis points to 10.2%, reflecting stronger operating leverage and making Supply Chain Solutions the company’s most improved segment on a profitability basis. Consolidated adjusted operating profit rose 12% year over year to $2.10 billion. The adjusted operating margin increased to 9.2% from 8.8%, supported by profit growth in the U.S. Domestic Package and Supply Chain Solutions businesses.On a GAAP basis, operating profit fell to $930 million from $1.82 billion, while diluted earnings declined to 71 cents per share from $1.51. Results included $1.17 billion of pretax transformation strategy costs, primarily related to employee separation expenses associated with the Driver Choice Program. UPS generated approximately $1.2 billion of benefits from its network reconfiguration and Efficiency Reimagined initiatives during the first six months of 2026. Management expects these programs to deliver approximately $3 billion of benefits for the full year.The company completed its planned Amazon volume reduction and related network changes during the period. UPS has reduced its operational workforce and closed daily operations at certain facilities as it aligns network capacity with its changing shipment mix. The broader initiatives are expected to conclude by 2027. Cash provided by operating activities increased to $3.08 billion in the first six months of 2026 from $2.67 billion a year earlier. Capital expenditures declined to $1.72 billion from $2 billion.Free cash flow more than doubled to $1.57 billion from $742 million. The improvement gives UPS greater flexibility to fund network investments, meet financial obligations and return capital to shareholders. Management raised its full-year consolidated revenue outlook to approximately $91.2 billion from the prior view of $89.7 billion. UPS also lifted its adjusted operating profit target to approximately $8.65 billion and adjusted earnings guidance to approximately $7.22 per share. Capital expenditures are still projected at roughly $3 billion. Dividend payments are expected to total around $5.4 billion, subject to board approval, while the effective tax rate is projected to be approximately 23%. It turns out, estimates revision have trended downward during the past month. The consensus estimate has shifted -6.4% due to these changes. Currently, UPS has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for value investors. Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, UPS has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report United Parcel Service, Inc. (UPS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in Hammond Power Solutions Inc.? Here are five stocks we like better. Record sales and stronger adjusted profitability: Second-quarter sales rose 44.7% year over year to C$324.8 million, while adjusted EBITDA increased to C$53.2 million, or 16.4% of sales. Growth reflected higher shipments, improved pricing, custom-product mix and operating leverage. U.S. data-center demand drove growth: Combined U.S. and Mexico sales increased 73%, with data centers now representing more than 30% of revenue. Backlog remained elevated—nearly double the prior-year level—even after declining sequentially as expanded facilities converted more orders into shipments. AEG acquisition broadens the portfolio: Hammond completed its acquisition of AEG Power Solutions on June 29, adding power-quality, power-conversion and critical-power products such as UPS systems, battery chargers and rectifiers. AEG is expected to contribute a full quarter of results in the third quarter as Hammond focuses on integration and further capacity expansion. Hammond Power Solutions (TSE:HPS.A) reported record second-quarter sales as expanded manufacturing capacity supported higher shipments, particularly into U.S. data center and critical-infrastructure markets, while the company also completed its acquisition of AEG Power Solutions shortly after the quarter ended. Chief Executive Officer Adrian Thomas said the company generated sales of C$324.8 million during the second quarter of 2026 and improved profitability as it converted more backlog into revenue. He said investments in manufacturing capacity enabled the company to ship more product, improve customer responsiveness and meet delivery schedules. → Microsoft Just Flipped the AI Spending Narrative Overnight “We shipped more product than ever before, improved our responsiveness to customers, and converted more backlog into revenue,” Thomas said. “These are exactly the outcomes we were expecting when we decided to make our capacity investments.” Chief Financial Officer Richard Vollering said second-quarter sales rose 44.7% from C$224.4 million a year earlier. Growth was led by the U.S. market, supported by higher data-center shipments, improved price realization and modest improvement in industrial markets. → 2 Unique Space ETFs That Could Upend the Industry Combined sales in the U.S. and Mexico increased 73% year over year. Demand was particularly strong for custom products used in data centers and other critical-infrastructure projects, while output from the company’s expanded Mexico facility continued to increase. Canada was a weaker market, with sales declining 23.7% from the prior-year period. Vollering attributed the decline to the timing of larger projects, softer market conditions and more competitive pricing. India sales were slightly below the prior-year level due to normal project timing. → MarketBeat Week in Review – 07/27- 07/31 Data centers now account for more than 30% of Hammond Power Solutions’ revenue, Vollering said, exceeding the level discussed on prior calls. Thomas added that data-center projects tend to involve larger order values because they require significant numbers of transformers. Despite the rising importance of data centers, management emphasized that the company remains diversified across commercial and industrial construction, mining, oil and gas, utilities, infrastructure, renewables and OEM markets. Backlog declined 6.9% from the first quarter as increased production allowed the company to convert orders into sales. However, backlog remained 96.9% higher than a year earlier, driven largely by larger project orders, including data-center projects. Thomas said quotation activity remained strong and broadly consistent with activity at the end of 2025. While data centers remain an important source of demand, he said the company continues to see activity across a broad range of sectors in North America, especially in the U.S. The company said its Mont 4 manufacturing facility is fully ramped, while Mont 3 is improving and ramping quickly but is not yet operating at full capacity. Thomas said the company has made incremental investments in both facilities beyond original projections, helping it move beyond what had previously been described as roughly C$1.2 billion of capacity. Management is continuing to assess additional manufacturing capacity options, including footprint expansion, equipment additions, shop-floor process improvements and efforts to relieve production bottlenecks. Thomas said such smaller expansions are generally measured in the tens of millions of dollars rather than C$50 million to C$100 million projects. Gross margin was 31.5% in the second quarter, up from 30.1% in the first quarter but below 32.7% in the second quarter of 2025. Vollering said the sequential improvement reflected price realization, a greater proportion of custom sales, improved factory overhead absorption and stronger operating leverage as volumes rose. Adjusted EBITDA increased to C$53.2 million, or 16.4% of sales, from C$33.4 million, or 14.9% of sales, a year earlier. The gain reflected higher volumes, stronger gross margin and improved operating leverage. Reported net earnings, however, fell to C$9.4 million from C$13.4 million in the prior-year quarter. Vollering said reported results included acquisition-related costs tied to AEG Power Solutions, foreign-exchange losses and higher share-based compensation expense. Adjusted earnings per share rose to C$2.76 from C$1.72 a year earlier. Management said pricing actions and operational improvements have helped offset tariff and input-cost pressures. Vollering said pricing and costs have now stabilized and that he does not anticipate additional pricing changes in that area. The company’s net debt totaled C$36 million at quarter-end, increasing from the first quarter due primarily to higher working-capital needs associated with the higher sales level, particularly in June. Working capital as a percentage of sales declined from the first quarter, according to management. Hammond Power Solutions closed its acquisition of AEG Power Solutions on June 29. The second-quarter results included transaction costs but no revenue or operating costs from AEG, Vollering said. The third quarter is expected to include a full quarter of AEG results, remaining closing costs and associated debt. Thomas said the acquisition expands the company beyond transformers by adding power-quality, power-conversion and critical-power technologies, including UPS systems, battery chargers and rectifiers. AEG also brings a service business and a global installed base. Vollering said AEG generated close to C$326 million of revenue in 2025 and is tracking near that level in 2026, although its first-half results were affected by its Middle East business. He said the business is typically more weighted toward the second half of the year. Management said AEG’s power-conversion capabilities, including systems up to 800 volts and 1,500 volts DC, could strengthen Hammond Power Solutions’ ability to address evolving data-center power architectures over time. Thomas said the company continues to see substantial quotation activity for more traditional transformer architectures, including deliveries extending into 2027. Looking ahead, management said its priorities include converting backlog into shipments, maintaining operational discipline, improving working-capital performance, integrating AEG and continuing to evaluate manufacturing capacity opportunities. Hammond Power Solutions Inc is engaged in designing and manufacturing of custom electrical magnetics, cast resin, custom liquid filled distribution and power transformers and standard electrical transformers, serving the electrical and electronic industries. The company has manufacturing plants in Canada, the United States, Mexico and India. The company operates in various geographical markets including Canada, the United States, Mexico, and India in which it derives majority revenue in the United States and Mexico. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Hammond Power Solutions Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

SummaryView Transcript While the freight market shows resilience, UPS earnings paint a different picture, raising questions about Amazon’s impact and the carrier’s restructuring. Meanwhile, truck OEMs like PACCAR are reporting strong performance, indicating robust demand and favorable pricing ahead. Christopher Versace breaks down the Q2 earnings season in logistics and transportation. UPS stock sold off after the parcel giant declined to guide its domestic business meaningfully higher for the second half of the year — a notable omission given resilient consumer demand and robust freight volumes across the broader market. Chris Frusciante, portfolio manager at TheStreet Pro and chief investment officer at Tematica, said the company’s restrained outlook stands out as a red flag relative to what the rest of the industry is reporting. The Amazon overhang remains the central concern. Amazon’s earlier announcement that it is moving into business freight and delivery through its Flex service has raised fresh questions about UPS’s long-term volume trajectory. UPS attempted to frame its second-quarter results by arguing that, excluding volumes it intentionally ceded to the market, it actually grew. Frusciante was unimpressed. “If UPS is saying, oh, on an adjusted basis, if we strip this out, strip that out, you know, oh, we would have done this, that’s not really what happened,” he said. “And I think that’s kind of trying to, as some might say, put lipstick on a pig.” While UPS stumbles through what Frusciante described as a prolonged restructuring — punctuated by divestitures including the sale of brokerage unit Coyote — the broader trucking sector is telling a different story. Old Dominion reported an operating ratio of 70, and Werner Enterprises CEO Derek Leathers characterized the freight cycle as being in the third inning, citing a tight driver market as a natural cap on capacity growth. PACCAR stood out as the clearest bright spot. The Kenworth and Peterbilt parent reported 105,000 heavy trucks delivered in the first half of the year and guided for 145,000 in the second half — a roughly 38% sequential increase. Frusciante said filling order slots and incremental pricing power prompted him to raise his price target on PACCAR shares. “Tight capacity, demand, pricing, better margins, better earnings potentially in the second half of the year,” he said, summarizing the bull case. The 2027 EPA engine mandate is shaping OEM strategy heading into next year. PACCAR signaled it plans to continue selling current engines through 2026 and gradually phase in compliant 2027 powertrains to avoid a sharp pre-order cliff. Frusciante noted the timing of PACCAR’s annual model reveal — whether early or late in the first quarter — will determine how long 2026 engines remain available. Rising capital expenditures at carriers including Werner and TFI point to a mix of fleet replacement and pre-buy activity ahead of the mandate. On the carrier side, the tight driver market is constraining capacity expansion and supporting rates. Veteran drivers at well-run fleets typically receive new equipment first, with one trucking operator on the panel noting a goal of keeping average fleet age below two years. That discipline, combined with incremental demand, is expected to support margin improvement across the sector in the back half of 2025. UPS declined to guide domestic volumes meaningfully higher for H2, unsettling Wall Street despite resilient consumer freight demand and Amazon competitive pressure. PACCAR guided for 145,000 heavy truck deliveries in H2, up from 105,000 in H1, prompting Frusciante to raise his price target on the stock. The 2027 EPA engine mandate is driving a pre-buy cycle; PACCAR plans to smooth production by gradually phasing in compliant engines rather than abruptly cutting off 2026 models. Speaker 1 [0:00] Welcome back to FreightWaves Today. It is earnings season. We’re on a roll, not just the railroads. We have OEM earnings. We’ve got big transport earnings. And the person to break it down for us is Chris Frusciante. He is the portfolio manager at TheStreet Pro. He’s the chief investment officer at Tematica. Chris, welcome to FreightWaves Today. Second, by the way— Speaker 2 [0:24] Nice to be back, fellas. Speaker 1 [0:26] Welcome back. Thank you. Speaker 2 [0:29] Thanks for having me back. Speaker 1 [0:30] Let’s talk earnings. UPS has reported. Their stock sold off. I think some of it was guidance. Obviously, the Amazon story has been overhanging their stock. What’s your general sense of UPS right now? Speaker 2 [0:43] Well, UPS to me has been a tough one to contemplate owning as an investor. Having said that, I get packages all the time, you know, but from an investor, you know, we have to always assess a few things. One is the competitive landscape. Clearly Amazon, not only on the retail side, but the Flex that it announced earlier this year by moving into business freight and delivery, that’s raised a lot of questions. And when we talked about UPS’s earnings, they didn’t really guide the back half of the year higher for the domestic business, which is kind of counterintuitive if you think about it, given what we’re seeing in terms of the consumer being resilient, the lead-up to the holiday shopping season, and just overall demand for freight. So it’s a bit of a puzzle to me. Speaker 1 [1:36] And it’s just, I guess, so much— it’s just, it’s hard right now knowing all the different impacts, the regulatory environment, container flows are really robust compared to where they’ve been. I think our data actually channel checks say that the consumer is doing quite well. At least the freight part of the consumer supply chain is doing quite well. But it looks like this Amazon story with UPS, it feels like that’s the biggest factor. Chris, am I reading that incorrectly? Speaker 2 [2:03] Yeah, I think that’s right. I mean, you have to remember too that UPS has kind of been a restructuring story. And, you know, a lot of folks are still waiting for the payoff in that to the extent that it is taking longer than expected or these other competitive challenges that we’re talking about are going to take it— make it even longer to show progress that people are hoping to see. I think that’s really what’s weighing on the shares and really the company’s business. To me, it’s very much a wait and see. But at the same time, given the seasonal dynamics, especially in the consumer freight delivery business or consumer package delivery business, to the extent that Amazon is taking more share out of UPS, Flip it around, UPS is not exactly guiding for a much stronger second half of the year compared to the first half. That’s a little worrisome to me. Speaker 1 [2:57] Yeah, it is interesting. We do a lot of channel checks, not only on the show, but certainly on the show. Consumer, the freight market, at least the channel checks that we’ve gotten, the interviews have all talked about how robust it is. But it was like a UPS story. I think you talked about the fact that it is a sort of, I wouldn’t call it a turnaround, but a restructuring post-Amazon. As well as when Carol has come in and divested a lot of their businesses, Coyote, which we’ll hear from RXO in a couple of weeks about how they’re performing. I guess that is next week. Oh my gosh, I can’t believe we’re the last week of July. Speaker 3 [3:32] We have a guest from RXO tomorrow too. Speaker 1 [3:34] Yeah, we have a lot of guests. Speaker 3 [3:36] Yeah, I agree, Chris, with what you said regarding— I think they tried to do damage control by saying if you ignore Amazon and the volume we intentionally made available to the market, we actually grew our volume in the second quarter. But then just the 3rd quarter outlook felt so weak that it felt like a little bit of a— Speaker 1 [3:53] Was that weakness just by Wall Street’s expectations because everybody else had been so robust, Chris? Or was this a weakness that they actually felt across their network? Speaker 2 [4:01] I think it’s a little bit of both. And the point about blah, blah, blah, but the reality is that you can talk about underlying strength, but relative to what Wall Street is looking for, it’s the overall numbers that really matter most. So if UPS is saying, oh, on an adjusted basis, if we strip this out, strip that out, you know, oh, we would have done this, that’s not really what happened. And I think that’s kind of trying to, as some might say, put lipstick on a pig. Not exactly what you want to hear. But again, you know, the outlook wasn’t quite as robust as Wall Street was looking for. I will say, that a lot of what we’re seeing in the larger stock market today is companies that are even putting up good numbers, maybe falling short of some of those whisper expectations that the market might have had given the run-up in the overall stock market from earlier this year, certainly off the April lows. And I think to the extent that companies are not able to deliver not only a beat for the quarter they’re reporting, but a raise That is weighing on shares. And I think we’re seeing some of that play out in the shares of UPS. Speaker 1 [5:11] Well, the market got so elevated. And even the transportation, the truckers, have one of the best— up until really the last month or so, best performing sector, one of the best performing sectors. I mean, truckers specifically, which we haven’t been able to say that in a long time, just how strong things are. Speaker 3 [5:29] Well, even ARK Best, after their report of the OR that we talked about at 70, their stock fell. Speaker 1 [5:34] You mean Old Dominion? Speaker 3 [5:35] Oh, I’m sorry. Speaker 1 [5:35] Old Dominion. Speaker 4 [5:36] Although we are going to talk about ARK Best. Speaker 1 [5:39] Old Dominion, Chris, 70OR. I mean, everyone in transportation and trucking looks good. Old Dominion looks best. They did look best. Speaker 2 [5:49] Well, I mean, so I have to be honest, I haven’t dug deep into that report. What I can say is this, is that we are seeing demand from the rails be very strong. We are seeing tight capacity utilization for the truck fleets. And there are some very specific reasons for that, both demand side and supply side. But at the same time, we’re also seeing, and this is something that we touched on the last time I was on, we are seeing OEMs and owner operators open up their wallets for replacing, you know, heavy trucks. You take a look at what PACCAR said the other day, you know, 105,000 heavy trucks in the first half of the year, 145,000 expected for the second half. of the year. That’s a big jump. So I do think that while we are talking about areas of, you know, some call it frustration, other areas where companies may not be achieving what was expected, there are others, and I would put PACCAR in this camp, that the outlook continues to look very favorable into the back half of the year. Speaker 1 [6:59] So Chris, I get, you know, I want to bring my dad in. He’s bought more trucks than all of us combined. PACCAR is Kenworth, Peterbilt is really the portfolio there. What in this market— whom do you think of the OEMs that has the best product lineup? Does PACCAR have the right product lineup for this market? Or do you think that Daimler or Volvo are better positioned, or International? Speaker 4 [7:30] I think they’re all positioned pretty well for this type of market. But, you know, PACCAR has been pretty innovative in a lot of their products, you know, especially having Peterbilt, which a lot of truckers think is probably one of the better driver-type trucks in the market. Kenworth has been pretty innovative in a lot of their fuel economy. Speaker 2 [7:52] Yeah. Speaker 4 [7:53] But PACCAR is a very strong company. You know, they bring a lot to the industry and they’ve helped redefine this industry Quite a bit over the last probably 30, 40 years. That doesn’t mean Freightliner and Volvo are very strong too, though. Speaker 1 [8:10] You mean that they are very strong? Speaker 4 [8:11] They are very strong. Speaker 1 [8:12] Chris, any thoughts on that? Speaker 2 [8:14] You know, I’m just going to say what he said, pretty much. Speaker 1 [8:18] Well, our audience, especially on X, has an opinion on what they call plastic trucks. And they’re really knocking the Freightliner trucks because they like the whole They like to go old. The old Peterbilt is the deal. I’m personally— I think Mack has got the best looking truck on the road. But nobody asked my opinion on which truck to get. Speaker 2 [8:37] And yet nobody’s mentioning a name from the past known as Western Star. Speaker 1 [8:41] Yeah. Speaker 4 [8:42] Yeah. Speaker 1 [8:44] So it is— I mean, it is interesting just how all of the OEMs are coming in with real strong guides. How much of this, Chris, is the pre-buy, or how much of it is— Are you getting a sense that this is replacement or expansion? Speaker 2 [8:58] I think it’s a little bit of both, obviously. You know, the pre-buy is something that we’re gonna be talking about over the next several months, you know, and PACCAR, I thought, had an interesting comment about the way— how the way they’re gonna attempt to try and smooth out the pre-build into 2027. We’ll see how that happens. But at the same time, if we listen to, you know, rising CapEx levels from some of the logistic companies, Werner, for example, TFI, you know, it speaks to them them, you know, replacing existing capacity potentially for ones that are, you know, more fuel efficient and obviously ahead of that mandate. So again, I think it’s a little bit of both. Speaker 3 [9:38] So I did think I read that as well, and I thought that was a really interesting comment, the way they talked about to dig into the EPA mandate a little bit more, that they’re going to continue selling their current engines through 2026 and then gradually phase in the compliant 2027 engines because they don’t want to have that pre-order cliff. Speaker 1 [9:52] Are they allowed to sell if they have a ’26 engine in stock? Are they allowed to sell it into ’27, or do they have to actually Do they have to actually have the 27 engines when that goes into effect? Speaker 2 [10:03] Yeah, my understanding is that the cutoff point is when they— or historically it’s been when they introduce the new model year. And I think PACCAR tends to have, in particular PACCAR tends to have an annual event where they reveal the new model. And I think that’s when it is. The question is, is that early in the first quarter, late in the first quarter, or do they push it even to a little bit later in order to accommodate maintaining the 2026 engine for a little further. Speaker 1 [10:33] Now, what are you expecting beyond obviously the emissions? Any cool technology that the OEMs are talking about, or is this going to be a year that the drivers themselves are going to be a little disappointed in their product rollout? Speaker 2 [10:43] I think primarily the drivers from an industry order, industry delivery mechanism is going to be more influenced by that EPA mandate than anything else. I’m sure we’ll see some incremental new features, but I haven’t seen anything that is Jumping out at me that says, “Wow, this this is cool. Speaker 1 [11:05] This is the new toy, right? Speaker 2 [11:07] Right, right. That this is cool. This is the must have. This is what’s gonna you know if this was the iPhone, we’d be talking about oh what’s gonna drive the upgrade cycle. I I haven’t seen anything out there that jumps at me to that degree. Speaker 1 [11:20] Although Chris, much like the OEMs, Apple’s gotten criticized because their release feels like much of the same. In fact, Steve Jobs’ daughter is a great. tweet a couple of years ago where she’s like, this is exactly— like, all the features are the same. Dad, when you look at OEMs rolling out things, obviously, you’ve got the new engines. But is there anything that you got really excited about? Like, what was that like when they would do new features? What were the things that you were looking for? Was it more fuel economy? Obviously, it’s important. Total cost of ownership. Was there anything that you’re like, whoa, that would be amazing? Speaker 4 [11:53] Well, total cost of ownership is probably the number one. Speaker 1 [11:57] Yeah. Speaker 4 [11:57] Because you have to be able to afford it. Number 2 is, you know, when you’ve got a truck that gets better fuel economy or a truck that basically has a better ride for the driver, better safety. I mean, there’s a blend of things that you’re looking for when you buy a truck. Speaker 1 [12:13] Very different than consumers buy cars. I’m a pilot, and if you’ve looked at a Cessna 172 from 1960, it looks the same. And so the joke is, Seston’s going to release the same thing. If they upgrade the upholstery in the airplane, that’s an innovation for Tesla. Speaker 2 [12:29] So— Speaker 3 [12:30] I’m sorry. Speaker 1 [12:30] Go ahead, Chris. Speaker 2 [12:31] I was going to say it’s all about those creature comforts. The one thing I didn’t hear your dad mention is kind of the setup for the driver in the back. I think to the extent that there can be some incremental room or other creature comforts, I think that’s a plus. Speaker 4 [12:44] Yeah, for sure. Speaker 3 [12:45] So did anything else stand out in PACCAR’s earnings to you, Chris, that we haven’t touched on? Speaker 2 [12:50] Just the fact that production levels are poised to go higher, that The build level, if you look at it, the slots are really filling up for the balance of this year. And I think that bodes well for some incremental pricing, which in my opinion, you know, when we tie it together with rising volumes and better pricing, that’s great for margins in the back half of the year. That and the reason I talk about this is we took our price target up on PACCAR shares because of that incremental profit expectation in the back half of the year. So I am very bullish on those shares. Speaker 1 [13:28] Chris, Derek Leathers, the CEO of Werner, talked about how tight the driver market is, how difficult it is to find qualified drivers that can meet the standards. And that’s really putting a cap on capacity growth. And he thinks that we’re in the 3rd inning. Obviously, there’s 9 of those, which I think is promising for the cycle. Dad, when you’re hiring drivers, when you have a tight market, how much is new truck important? So that’s important to attract drivers. And do the new drivers get the new trucks or does it go to the more veteran drivers to retain them? Speaker 4 [13:58] Well, usually your veteran drivers get the new trucks first, you know, and new drivers come in, they get the older trucks. But you’ve got to have a fleet that’s relatively new anyway. We try to keep our average age below 2 years. Yeah. Yeah. Which basically meant you didn’t have hardly anything over 4 years old. But at the same time, Drivers always like getting the new equipment, especially a lot of the new technologies that were coming out. Speaker 1 [14:26] Yeah, for sure. Speaker 4 [14:26] Made their jobs a lot easier, a lot more comfortable in the process. Speaker 1 [14:30] Chris, any closing thoughts on earnings? TFI’s earnings, Old Dominion Art Gas? Speaker 3 [14:35] So many. Speaker 1 [14:35] I mean, like, it is the problem of this week is it just one after another after another. Speaker 2 [14:39] Well, that’s so— that’s a problem for some. For me, that’s great because you get to sit back, kind of connect the dots. And piece it all together for— and that helps kind of improve the outlook for the back half of the year, greater clarity in other words. So the one thing I would say just to touch on is as long as the industry remains— has tight capacity, excuse me, and we do see some incremental demand, I think that’s going to allow for more favorable pricing. And if you just take my comments for PACCAR and follow it through, tight capacity, demand, Pricing, better margins, better earnings potentially in the second half of the year. Speaker 1 [15:17] Well, it feels like we’re really in the third inning. Companies can improve. We’ll see how good Old Dominion can make that $70. Appreciate it, Chris. Thanks for joining us. Always great to get an update as we have earnings. The post Trucking Earnings: Why UPS Is Falling Behind in a Robust Market appeared first on FreightWaves.

Make better investment decisions with Simply Wall St's easy, visual tools that give you a competitive edge. United Parcel Service stock has risen 24.2% over the past year but is still down 32.9% over three years, and current valuation checks suggest the market may be pricing it below what its cash flows and earnings justify. The share price decline of 32.9% over three years leaves long term holders under water and raises the question of whether expectations have been marked down too far. Upcoming earnings and cash flow trends, including how UPS manages margins and pricing in the face of rising fuel surcharges and competition from Amazon Shipping, can support or undermine any case that the stock is priced for recovery. UPS screens as undervalued on both its Discounted Cash Flow (DCF) intrinsic value estimate and earnings multiples, yet its broader checks are mixed, with the company scoring 4 out of 6 on valuation. This points to some attractive signals but not a straightforward bargain. The issue now is whether United Parcel Service's current share price around US$105.53 offers enough upside relative to these valuation markers for investors who are weighing past share price declines against the present discount. Find out why United Parcel Service's 24.2% return over the last year is lagging behind its peers. The Discounted Cash Flow (DCF) model estimates what United Parcel Service is worth based on the cash it can return to shareholders over time. For UPS, the latest twelve month free cash flow sits at about $4.6b, and the model assumes these cash flows recover and grow from that base rather than shrink. On these cash flow projections, the DCF points to an estimated intrinsic value of about $182 per share compared with the current share price near $105. This implies the stock screens around 42.1% undervalued on this method. Recent focus on cost control and profitability, highlighted in previews of the upcoming Q2 2026 results, helps explain why cash flows are central to the case that United Parcel Service is priced below its calculated value. On this Discounted Cash Flow view, United Parcel Service stock currently looks undervalued relative to its projected cash generation. Our Discounted Cash Flow (DCF) analysis suggests United Parcel Service is undervalued by 42.1%. Track this in your watchlist or portfolio, or discover 49 more high quality undervalued stocks. Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for United Parcel Service. The P/E ratio is a useful way to think about what you are paying for each dollar of United Parcel Service earnings. On this yardstick, UPS trades at about 19.6x earnings, which is above the logistics industry average of roughly 15.5x but below the peer group average near 22.6x. A more tailored fair P/E for United Parcel Service, which factors in its size, margin profile and risk, sits higher at about 28.4x. That is a sizeable gap to the current 19.6x multiple and indicates the stock trades at a discount even after considering its premium to the broader logistics industry. For investors weighing UPS against both its sector and direct peers, the current P/E suggests the market is not fully crediting the company with the earnings profile implied by this framework. On the P/E multiple, United Parcel Service stock appears undervalued relative to the earnings level implied by its fair ratio benchmark. See what the numbers say about this price — find out in our valuation breakdown. For investors trying to understand the valuation puzzle around United Parcel Service's stock, Simply Wall St Narratives sit between the numbers and the assumptions behind them. They spell out what would need to happen to United Parcel Service's growth, margins and earnings for the stock to be worth meaningfully more or less than today. Each one treats fair value as a thesis about the business that you can track over time on the Community page. Community views on United Parcel Service sit on very different tracks, with one camp focused on transformation upside and the other on execution and cost risks. Bull case: 22% undervalued Read the full Bull Case to see why United Parcel Service could be undervalued Bear case: 11% overvalued Read the full Bear Case to see why United Parcel Service could be overvalued Do you think there's more to the story for United Parcel Service? Head over to our Community to see what others are saying! United Parcel Service screens as undervalued on both the Discounted Cash Flow (DCF) intrinsic value estimate and its P/E multiple, with those methods broadly pointing in the same direction. That creates a potential upside case, yet the mixed overall valuation score suggests investors are still weighing execution and cost risks before re rating the stock. The crux from here is whether UPS can sustain margins and cash generation while competing with Amazon Shipping and managing fuel and labor pressures. If that holds, the current discount could look like an opportunity rather than a value trap. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include UPS. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

United Parcel Service, Inc. UPS framed its second-quarter 2026 earnings call around the completion of its Amazon volume reduction and the emergence of a leaner U.S. network. Management also raised its full-year outlook, arguing that improved pricing, automation and a richer customer mix should support margin expansion through the second half. Chief executive officer Carol Tomé said UPS completed its 18-month Amazon glide-down and related network reconfiguration as designed. The company removed roughly 2 million lower-quality pieces per day and about $4.5 billion of associated expenses. Chief financial officer Brian Dykes said the restructuring included nearly 30,000 fewer operational positions during the first half and 45 building closures, with additional closures planned later in 2026. Management still expects approximately $3 billion of benefits from network reconfiguration and efficiency programs this year. UPS presented the completed reset as a foundation for operating leverage rather than an endpoint. UPS increased its full-year consolidated revenue outlook to approximately $91.2 billion and adjusted operating profit target to about $8.65 billion. Adjusted earnings guidance rose to approximately $7.22. Dykes said the outlook assumes U.S. Domestic revenues of approximately $60 billion and a full-year operating margin near 7.5%. Management expects the segment’s second-half margin to reach approximately 8.8%. Capital expenditures remain projected at about $3 billion, while free cash flow is expected to reach approximately $5.5 billion. UPS also plans roughly $5.4 billion of dividend payments, subject to board approval. U.S. Domestic revenues increased 6% to $14.9 billion, while adjusted operating profit rose 21% to $1.19 billion. The adjusted operating margin expanded 100 basis points to 8%. Dykes attributed the improvement to pricing, mix and productivity. Revenue per piece increased 9.3%, exceeding adjusted cost-per-piece growth by 130 basis points. UPS reported adjusted earnings of $1.76 per share, above the Zacks Consensus Estimate of $1.65. Revenues of $22.83 billion also exceeded the $21.75 billion consensus estimate. United Parcel Service, Inc. price-consensus-eps-surprise-chart | United Parcel Service, Inc. Quote Tomé said the next phase centers on small and midsize businesses, healthcare and business-to-business shipments. SMB average daily volume grew 4.3%, lifting its share of U.S. volume by 250 basis points to 34.5%. Digital Access Program revenues reached $1.4 billion, while B2B volume through the platform increased 34%. Healthcare revenues exceeded $3 billion for the second consecutive quarter. Management also emphasized RFID and artificial intelligence. Tomé said RFID has been deployed across U.S. delivery facilities and package cars, providing data that UPS can use to improve planning, routing and package visibility. International revenue rose 12.5% to $5.04 billion, although adjusted operating profit declined 8.7% to $623 million. The segment’s operating margin fell to 12.4% from 15.2%. Dykes said fuel created a larger margin effect internationally because air transportation represents a greater share of the cost structure. Middle East disruptions also required additional aircraft hours and network rerouting. Management expects International revenues to grow at a mid-single-digit rate for 2026, with a mid-teens operating margin. Improving Asia trade lanes and easier comparisons tied to de minimis changes underpin the second-half view. A Goldman Sachs analyst asked whether the domestic margin improvement was structural. Dykes said UPS expects revenue per piece to exceed cost per piece by 50 to 100 basis points, supporting further margin expansion. A UBS analyst pressed management on 2027 pricing and mix. Dykes said base pricing plus 50 to 100 basis points of product-mix benefit was a reasonable framework, while Amazon comparisons will continue affecting the first half of 2027. A Bernstein analyst asked about Amazon’s competitive ambitions. Tomé said UPS had not identified volume lost to Amazon and stressed the company’s advantages in complex health care, RFID visibility, service and customer relationships. Management’s tone was confident but disciplined. UPS expects second-half improvement from a structurally smaller network, stronger pricing and premium-volume growth rather than a broad recovery in package demand. The company’s priorities remain revenue quality, automation, healthcare logistics and consistent margin expansion, while fuel volatility, tariffs and geopolitical disruptions remain operating considerations. UPS currently carries a Zacks Rank #3 (Hold). The Value Score of B, Momentum Score of A and VGM Score of B indicate favorable characteristics in those styles, while the Growth Score of C is comparatively neutral. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Style Scores are designed to complement the Zacks Rank, with A and B representing stronger grades. The current ranking calls for a balanced stance, and the Zacks Rank can change as earnings estimates are revised following the latest results. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report United Parcel Service, Inc. (UPS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Consolidated Revenue: $22.8 billion, an increase of 7.6% year-over-year. Consolidated Operating Profit: $2.1 billion, an increase of 12% year-over-year. Consolidated Operating Margin: 9.2%, a year-over-year increase of 40 basis points. Diluted Earnings Per Share: $1.76. US Domestic Revenue: $14.9 billion, an increase of 6% year-over-year. US Domestic Operating Profit: $1.2 billion, a 21% increase year-over-year. International Revenue: $5 billion, an increase of 12.5% year-over-year. International Operating Profit: $623 million, down $59 million year-over-year. Supply Chain Solutions Revenue: $2.9 billion, an increase of $207 million year-over-year. Supply Chain Solutions Operating Profit: $291 million, an increase of $79 million year-over-year. Free Cash Flow: $1.6 billion year-to-date. Cash on Balance Sheet: $4.7 billion at the end of the second quarter. Full-Year 2026 Revenue Outlook: Approximately $91.2 billion. Full-Year 2026 Operating Profit Expectation: Approximately $8.65 billion. Full-Year 2026 Diluted EPS Guidance: Approximately $7.22. Warning! GuruFocus has detected 9 Warning Signs with UPS. Is UPS fairly valued? Test your thesis with our free DCF calculator. Release Date: July 28, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. United Parcel Service Inc (NYSE:UPS) successfully executed its Amazon glide down and network reconfiguration plan, eliminating approximately 2 million pieces per day of lower-quality Amazon volume and removing $4.5 billion of related expenses. The company reported a 7.6% increase in consolidated revenue to $22.8 billion and a 12% increase in consolidated operating profit to $2.1 billion for the second quarter of 2026. UPS has invested in RFID and AI technologies, enhancing package visibility and network efficiency, which is expected to drive future growth and customer retention. The company achieved significant growth in its healthcare logistics segment, generating over $3 billion in revenue for the second consecutive quarter. UPS raised its full-year 2026 consolidated revenue outlook to approximately $91.2 billion and increased its operating profit expectation to approximately $8.65 billion, reflecting strong business momentum. The second quarter saw a decline in total US average daily volume by 3.3% compared to the previous year, primarily due to the planned Amazon glide down. International segment operating profit decreased by $59 million year over year, with a 120-basis-point negative impact from fuel costs. The company faced challenges from fuel price volatility, which, despite being covered by surcharge mechanisms, resulted in modest net impact on consolidated operating profit. UPS's International average daily volume declined by 5.8%, led by domestic declines in Europe, and export volume decreased by 4.2% year over year. The company is still navigating complex trade environments and supply chain disruptions, which could impact future performance. Q: With the Amazon drawdown done, can you elaborate on your confidence level around the structural change on Domestic margin and what that could mean for longer-term Domestic margin perspective? A: Carol Tome, CEO, explained that automation in the US business is a key factor, with 68.5% of volume now flowing through automated buildings, reducing costs by about 28% compared to non-automated buildings. Brian Dykes, CFO, added that the reduction in capacity and structural costs, such as eliminating 2 million pieces of lower-yielding volume and closing nearly 150 buildings, supports margin improvement. They expect a 50 to 100 basis points spread between revenue per piece (RPP) and cost per piece (CPP) to drive margin accretion. Q: Can you provide more color on the Domestic margin improvement, which seems to moderate in Q3 and reaccelerate in Q4? Also, how do you see the competitive dynamic evolving with both UPS and FedEx targeting SMB and B2B share? A: Brian Dykes noted that the Q3 margin reflects normal seasonality, with a consistent 50 to 100 basis points RPP to CPP spread. Carol Tome emphasized UPS's focus on retaining and acquiring customers through differentiating capabilities like RFID and healthcare logistics, which provide a competitive edge. Q: How do you view the cost per piece trend in the second half and into 2027, considering your focus on premium verticals and packages? A: Brian Dykes explained that both RPP and CPP will decrease slightly as they wrap pricing changes from last year, maintaining a 50 to 100 basis points spread. They expect product mix benefits from focusing on premium segments, with base pricing plus 50 to 100 basis points of product mix as a reasonable expectation. Q: With the Amazon glide down complete, how do you view the growth profile of that part of your portfolio versus other opportunities for top-line growth? A: Carol Tome stated that Amazon remains an important customer, now making up 9% of total revenue, down from over 13% during COVID. The focus is on optimizing volume with Amazon and leveraging partnerships for mutual benefit. Q: How do you feel about the capacity on the go-forward, considering the demand environment and recent changes? A: Brian Dykes expressed confidence in the current capacity, highlighting the automation and flexibility to scale capacity as needed. Carol Tome added that the automation allows for significant capacity to handle more volume efficiently. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

United Parcel Service, Inc. (UPS) reported encouraging second-quarter 2026 results wherein both earnings and revenues surpassed the Zacks Consensus Estimate and increased year over year. Quarterly adjusted earnings of $1.76 per share increased 13.5% year over year. The figure beat the Zacks Consensus Estimate of $1.65 by 6.7%. Revenues rose 7.6% to $22.83 billion and surpassed the consensus estimate of $21.75 billion by 5%. Growth across all three segments supported the top line, while International revenue per piece climbed 18.9%. United Parcel Service, Inc. price-consensus-eps-surprise-chart | United Parcel Service, Inc. Quote Apart from the better-than-expected results, UPS has also raised its 2026 guidance. Management raised its full-year consolidated revenue outlook to approximately $91.2 billion from the prior view of $89.7 billion. UPS also lifted its adjusted operating profit target to approximately $8.65 billion and adjusted earnings guidance to approximately $7.22 per share. U.S. Domestic Package revenues increased 6% year over year to $14.93 billion, driven by a 9.3% improvement in revenue per piece. Average daily package volume declined to 16 million from 16.6 million a year earlier, indicating that pricing more than offset lower shipment activity. Adjusted operating profit advanced 21% year over year to $1.19 billion. The adjusted operating margin expanded 100 basis points to 8%, even as adjusted cost per piece increased 8% to $13.09. The margin improvement reflects progress from UPS’ network reconfiguration and efficiency initiatives. International Package revenues increased 12.5% year over year to $5.04 billion. The segment delivered the strongest revenue growth among UPS’ operating businesses, aided by the sharp increase in revenue per piece. Adjusted operating profit declined 8.7% year over year to $623 million. The adjusted operating margin contracted to 12.4% from 15.2% in the prior-year quarter, showing that higher revenue did not translate into operating profit growth as segment expenses increased. Supply Chain Solutions revenues rose 7.8% year over year to $2.86 billion. The improvement was primarily driven by growth in forwarding and logistics operations, including the healthcare business. Adjusted operating profit increased 37.3% year over year to $291 million. The adjusted operating margin expanded 220 basis points to 10.2%, reflecting stronger operating leverage and making Supply Chain Solutions the company’s most improved segment on a profitability basis. Consolidated adjusted operating profit rose 12% year over year to $2.10 billion. The adjusted operating margin increased to 9.2% from 8.8%, supported by profit growth in the U.S. Domestic Package and Supply Chain Solutions businesses. On a GAAP basis, operating profit fell to $930 million from $1.82 billion, while diluted earnings declined to 71 cents per share from $1.51. Results included $1.17 billion of pretax transformation strategy costs, primarily related to employee separation expenses associated with the Driver Choice Program. UPS generated approximately $1.2 billion of benefits from its network reconfiguration and Efficiency Reimagined initiatives during the first six months of 2026. Management expects these programs to deliver approximately $3 billion of benefits for the full year. The company completed its planned Amazon volume reduction and related network changes during the period. UPS has reduced its operational workforce and closed daily operations at certain facilities as it aligns network capacity with its changing shipment mix. The broader initiatives are expected to conclude by 2027. Cash provided by operating activities increased to $3.08 billion in the first six months of 2026 from $2.67 billion a year earlier. Capital expenditures declined to $1.72 billion from $2 billion. Free cash flow more than doubled to $1.57 billion from $742 million. The improvement gives UPS greater flexibility to fund network investments, meet financial obligations and return capital to shareholders. Capital expenditures are still projected at roughly $3 billion. Dividend payments are expected to total around $5.4 billion, subject to board approval, while the effective tax rate is forecasted to be approximately 23%. Currently, UPS carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Delta Air Lines (DAL) reported second-quarter 2026 earnings (excluding 88 cents from non-recurring items) of $1.56 per share, beating the Zacks Consensus Estimate of $1.51. Earnings declined in double digits (% wise) from a year ago as sharply higher fuel costs pressured profitability. Revenues rose on a year-over-year basis to $17.67 billion but missed the consensus estimate of $17.76 billion. Broad demand strength lifted adjusted total revenue per available seat mile, or TRASM, 12.4%, while premium and diversified revenue streams continued to expand. United Airlines Holdings, Inc. (UAL)reported second-quarter 2026 adjusted earnings of $1.99 per share, down 48.6% year over year but above the Zacks Consensus Estimate of $1.92 by 3.7%. Operating revenues rose 16% to $17.67 billion and were essentially in line with the $17.68-billion consensus mark. A 12.1% increase in total revenue per available seat mile, or TRASM, and broad-based gains across premium, loyalty and cargo revenues supported the top line despite sharply higher fuel costs. J.B. Hunt Transport Services, Inc. (JBHT) reported second-quarter 2026 earnings of $1.91 per share, up 45.8% from $1.31 a year ago. The figure beat the Zacks Consensus Estimate of $1.71 by 11.7%. Operating revenues climbed 19.4% year over year to $3.50 billion and surpassed the consensus mark of $3.19 billion by 9.5%. Higher volumes and pricing across several businesses supported growth, led by a 10% increase in Intermodal loads. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report United Parcel Service, Inc. (UPS) : Free Stock Analysis Report Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report J.B. Hunt Transport Services, Inc. (JBHT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in United Parcel Service, Inc.? Here are five stocks we like better. UPS delivered solid second-quarter growth: Revenue rose 7.6% to $22.8 billion, adjusted operating profit increased 12% to $2.1 billion, and adjusted operating margin expanded to 9.2%. Network restructuring is improving profitability: UPS completed its reduction of roughly 2 million lower-yielding Amazon packages per day while expanding automation and targeting higher-value SMB, healthcare and digital-services volume. The company raised its 2026 outlook: UPS now expects approximately $91.2 billion in revenue, $8.65 billion in operating profit, $7.22 in diluted EPS and $5.5 billion in free cash flow, despite international margin pressure from fuel and aircraft-rerouting costs. UPS Just Gave Investors a Second Chance to Buy United Parcel Service (NYSE:UPS) raised its full-year 2026 outlook after reporting second-quarter revenue and operating-profit growth, citing the completion of its planned reduction of lower-yielding Amazon volume, network reconfiguration efforts and gains in higher-value shipping segments. UPS reported second-quarter consolidated revenue of $22.8 billion, up 7.6% from a year earlier, while adjusted operating profit rose 12% to $2.1 billion. Adjusted operating margin increased 40 basis points year over year to 9.2%, and diluted earnings per share were $1.76. The company said GAAP results included $891 million, or $1.05 per diluted share, in after-tax transformation charges, primarily related to employee separation costs from its Driver Choice Program. → Volatility Is Back and These 3 Market Tollbooths Are Best Positioned to Profit Amazon Weaponizes Logistics, Triggering Sector-Wide Selloff CEO Carol Tomé said the company had completed an 18-month effort to reduce Amazon volume and reshape its U.S. network. UPS eliminated about 2 million lower-quality Amazon packages per day, removed approximately $4.5 billion in related expense, and reconfigured and automated facilities to support more profitable growth opportunities, according to Tomé. “We now have a leaner, more automated, more agile network that will deliver operating leverage as volume grows,” Tomé said. “Incremental volume today carries materially better economics than before because of the structural changes we’ve made.” → This Tiny AI Supplier Could Be More Important Than the Chipmakers UPS Stock Reversal Is Backed by Institutions—And a 6% Yield UPS’s U.S. Domestic segment generated $14.9 billion in revenue, up 6% from the prior-year quarter. Average daily volume fell 3.3%, reflecting the planned Amazon volume reduction, but revenue per piece increased 9.3%. More than half of the revenue-per-piece increase came from base-rate gains and customer mix improvements, with fuel accounting for the remainder, CFO Brian Dykes said. U.S. Domestic operating profit rose 21% to $1.2 billion, while the segment’s operating margin increased 100 basis points to 8%. Dykes said the company’s revenue per piece grew 130 basis points faster than cost per piece, aided by productivity gains in its reconfigured network. → 2 Stocks Built to Thrive If Inflation Refuses to Fade UPS said it expects to maintain a 50- to 100-basis-point spread between revenue per piece and cost per piece as it pursues margin expansion. Dykes said the company is targeting base-price growth in a range of roughly 250 to 350 basis points, supplemented by gains from customer mix. The company’s small and medium-sized business average daily volume rose 4.3% year over year, with growth across nearly all sectors and particularly strong demand from high-tech and healthcare customers. SMB shipments represented 34.5% of total U.S. volume, up 250 basis points from the prior year. UPS said B2B average daily volume declined 3.2%, though that represented a 190-basis-point improvement in the rate of decline compared with the first quarter. Tomé highlighted UPS’s investment in radio-frequency identification technology and artificial intelligence as key elements of its growth strategy. By the end of the second quarter, 68.5% of U.S. volume was moving through automated buildings, compared with 64% a year earlier. UPS said cost per piece in an automated building is about 28% lower than in a non-automated building. The company has deployed RFID sensing technology across U.S. delivery facilities and package cars, and all packages shipped through its 5,500 UPS Store locations are RFID-enabled. Tomé said the system is intended to reduce manual scans, improve package visibility and help the company make near-real-time network decisions through an AI-powered digital model of its operations. UPS also continued to emphasize growth in its Digital Access Program, healthcare logistics and industrial services. Global Digital Access Program revenue totaled $1.4 billion during the quarter, marking the third straight quarter above $1 billion. B2B Digital Access Program average daily volume rose 34% year over year. Healthcare revenue exceeded $3 billion for the second consecutive quarter. The company added 27 temperature-controlled cross-dock facilities to support cold-chain shipments, and Tomé said UPS’s ownership of assets throughout the healthcare supply chain differentiates it from competitors. Kate Gutmann, executive vice president and president of International, Healthcare and Supply Chain Solutions, said cold-chain revenue was growing at a double-digit rate. The International segment reported revenue of $5 billion, up 12.5% year over year, driven by an 18.9% increase in revenue per piece. However, operating profit declined $59 million to $623 million, and operating margin fell to 12.4%. Dykes said higher fuel costs had a greater margin impact internationally because of the segment’s air-heavy operations and longer flight distances. UPS also incurred costs related to rerouting aircraft and using leased aircraft amid conflict in the Middle East. International average daily volume fell 5.8%, including declines in European domestic activity. Export volume declined 4.2%, though UPS returned to year-over-year growth on the China-to-U.S. lane beginning in May as it lapped the prior-year elimination of the de minimis exemption for Chinese imports. Asia-to-Asia export volume rose 13.6% following investments in the region. Supply Chain Solutions revenue increased $207 million from a year earlier to $2.9 billion. The segment’s operating profit rose $79 million to $291 million, with margin expanding 220 basis points to 10.2%. UPS said forwarding revenue rose 8.1%, logistics revenue increased 4.3%, and UPS Digital revenue grew more than 30%. UPS raised its 2026 consolidated revenue outlook to approximately $91.2 billion and increased its operating-profit expectation to about $8.65 billion. The company now expects diluted earnings per share of approximately $7.22. U.S. Domestic revenue is expected to total about $60 billion, with a full-year operating margin of roughly 7.5%. International revenue is projected to grow in the mid-single digits, with an operating margin in the mid-teens. Supply Chain Solutions revenue is expected to grow in the high single digits, with a 10% to 11% operating margin. Capital expenditures are expected to be about $3 billion, while free cash flow is projected at approximately $5.5 billion. UPS expects third-quarter U.S. average daily volume to decline in the mid-single digits, reflecting seasonal trends and the completed Amazon reduction. The company expects U.S. Domestic revenue to be approximately flat in the third quarter, with a margin near 7%, before forecasting improved margin performance in the fourth quarter. Amazon represented 9% of UPS revenue in the second quarter, down about 100 basis points from a year earlier, Tomé said. The company said it will continue to work with Amazon to optimize the volume handled through its network while focusing its own growth efforts on higher-value segments including SMB, healthcare and B2B customers. United Parcel Service (NYSE: UPS) is a global package delivery and supply chain management company that provides a broad range of transportation, logistics and e-commerce services. Its core business centers on small-package delivery and last-mile distribution for business and individual customers, supported by a network of ground transportation, air cargo operations (UPS Airlines) and sorting facilities. In addition to parcel delivery, UPS offers freight transportation, contract logistics, warehousing, customs brokerage and reverse-logistics solutions designed to support domestic and international commerce. The company traces its roots to 1907 when it began as a small messenger service in the United States and later evolved into the United Parcel Service. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "United Parcel Service Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

United Parcel Service (UPS) came out with quarterly earnings of $1.76 per share, beating the Zacks Consensus Estimate of $1.65 per share. This compares to earnings of $1.55 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +6.67%. A quarter ago, it was expected that this package delivery service would post earnings of $1.04 per share when it actually produced earnings of $1.07, delivering a surprise of +2.88%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. UPS, which belongs to the Zacks Transportation - Air Freight and Cargo industry, posted revenues of $22.83 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 4.98%. This compares to year-ago revenues of $21.22 billion. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. UPS shares have added about 13.9% since the beginning of the year versus the S&P 500's gain of 8.3%. While UPS has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for UPS was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.75 on $22.09 billion in revenues for the coming quarter and $7.10 on $90.32 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Transportation - Air Freight and Cargo is currently in the top 40% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. GXO Logistics (GXO), another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 4. This contract logistics provider is expected to post quarterly earnings of $0.58 per share in its upcoming report, which represents a year-over-year change of +1.8%. The consensus EPS estimate for the quarter has been revised 0.3% higher over the last 30 days to the current level. GXO Logistics' revenues are expected to be $3.45 billion, up 4.6% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report United Parcel Service, Inc. (UPS) : Free Stock Analysis Report GXO Logistics, Inc. (GXO) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research