United Parcel Service, Inc. (UPS) is listed on NYSE and operates in the Integrated Freight & Logistics industry (Industrials sector).
United Parcel Service, Inc. provides letter and package delivery, transportation, logistics, and related services. It operates through two segments, U.S. Domestic Package and International Package. The U.S. Domestic Package segment offers time-definite delivery of letters, documents, small packages, and palletized freight through air and ground services in the United States. The International Package segment provides guaranteed day and time-definite international shipping services in Europe, the Asia Pacific, Canada and Latin America, the Indian sub-continent, the Middle East, and Africa. This segment offers guaranteed time-definite express options. The company also provides international air and ocean freight forwarding, customs brokerage, distribution and post-sales, and mail and consulting services in approximately 200 countries and territories. In addition, it offers truckload brokerage services; supply chain solutions to the healthcare and life sciences industry; shipping, visibility, and billing technologies; and financial and insurance services. The company operates a fleet of approximately 121,000 package cars, vans, tractors, and motorcycles; and owns 59,000 containers that are used to transport cargo in its aircraft. United Parcel Service, Inc. was founded in 1907 and is headquartered in Atlanta, Georgia.
| Rating | Analysts |
|---|---|
| Strong Buy | 2 |
| Buy | 18 |
| Hold | 21 |
| Sell | 4 |
| Strong Sell | 0 |
United Parcel Service, Inc. (UPS) is a global provider of letter and package delivery, transportation, and logistics services. The company operates through two main segments: U.S. Domestic Package and International Package. The U.S. Domestic Package segment offers time-definite delivery services for letters, documents, small packages, and palletized freight via air and ground within the United States. The International Package segment provides guaranteed day and time-definite shipping services across Europe, the Asia Pacific, Canada, Latin America, the Indian sub-continent, the Middle East, and Africa. Additionally, UPS offers international air and ocean freight forwarding, customs brokerage, distribution, post-sales, and mail services. The company also provides truckload brokerage, supply chain solutions for the healthcare and life sciences sectors, as well as shipping, visibility, and billing technologies. Financial and insurance services are also part of its offerings. UPS operates a fleet of approximately 121,000 vehicles and owns 59,000 containers for cargo transport. Founded in 1907, UPS is headquartered in Atlanta, Georgia, and serves around 200 countries and territories worldwide.
Over the past three fiscal years, the company has faced a challenging environment, with revenue showing an inconsistent trend, decreasing from $90.7 billion in 2023 to $88.6 billion in 2025, reflecting a CAGR of -1.2%. This decline in revenue was accompanied by a consistent decrease in earnings per share (EPS), which fell from $7.80 to $6.56, representing a CAGR of -8.3%. Margins have also compressed, with the gross margin decreasing by 1.0pp to 18.5%, and the net margin declining by 1.1pp to 6.3%. Despite these pressures, the company has managed to maintain positive free cash flow (FCF), although it decreased from $5.08 billion in 2023 to $4.77 billion in 2025, with the FCF margin slightly compressing by 0.2pp to 5.4%. The company's net debt position increased from $23.6 billion to $26.4 billion, indicating a rise in leverage, while the interest coverage ratio decreased to 8.4x, suggesting a reduction in the company's ability to cover interest expenses. On a positive note, the company has improved its working capital efficiency, as evidenced by a consistent decrease in the cash conversion cycle to 15 days. Additionally, the company executed a modest share buyback, reducing the share count by 1.2%, which has helped to partially offset the decline in per-share metrics. Overall, while the company has faced headwinds in revenue and profitability, it has maintained a disciplined approach to cash flow and capital management.
Recent developments for United Parcel Service (UPS) highlight a mix of financial outlooks and strategic initiatives. UPS is set to release its first-quarter 2026 results on April 28, with analysts anticipating a stable financial performance compared to 2025. The company expects its earnings to remain flat year-over-year, maintaining its dividend payout from the previous year. Analysts from The Motley Fool suggest that investing in UPS stock now could be beneficial, as the company is poised for a potential turnaround in the latter half of 2026. Meanwhile, Patriot Financial Group Insurance Agency LLC has reduced its holdings in UPS by selling 5,495 shares, while State Street Corp increased its position by acquiring an additional 288,720 shares, reflecting varied institutional sentiment. On the operational front, UPS, alongside FedEx and DHL, has begun filing for tariff refunds following a Supreme Court decision, which could impact future financials. Additionally, UPS has expanded its box-free, label-free return network to 10,000 U.S. locations in partnership with Happy Returns, enhancing its logistics capabilities. These developments indicate a strategic focus on maintaining financial stability while pursuing operational efficiencies and customer service improvements.