UPS Expected to Post Higher 4Q Profit, Despite Drop in Revenue -- Earnings Preview

Dow Jones
Jan 26

By Connor Hart

 

United Parcel Service is scheduled to report fourth-quarter earnings before the market opens Tuesday. Here is what you need to know:

NET INCOME: The shipper is projected to post a profit of $1.84 billion, up from $1.72 billion in last year's comparable quarter, according to analysts surveyed by FactSet.

ADJUSTED EARNINGS: Stripping out certain one-time items, earnings are forecast to come in at $2.20 a share. That compares with adjusted earnings of $2.75 a share a year earlier.

REVENUE: Revenue is expected to be $24.01 billion, down from $25.3 billion last year.

Shares have climbed 21% over the past three months and were recently trading hands at $107.88.

WHAT TO WATCH

--UPS in October said it had cut 48,000 management and operations positions through layoffs and buyouts. The job cuts were greater than the company announced in April 2025, when it said it would cut about 20,000 operational jobs. In January 2024, UPS said it planned to cut about 12,000 management jobs. Investors will be looking to see if headcount reductions have continued.

--Through the third quarter, UPS said its restructuring efforts have resulted in about $2.2 billion worth of cost savings. Beyond layoffs, the company said it has benefited from greater automation, which has in turn led to less variable capacity, as well as fewer leased aircraft, rented vehicles and seasonal workers. Investors will want updates on UPS's restructuring efforts, including savings and initiatives.

--Heading into the holiday shipping season, UPS said it was well-positioned to navigate increased demand. Investors will be looking to see whether that prediction held true. Stifle analysts noted they will be looking to see if UPS was able to maintain its margins through the peak shipping period, in addition to whether the company's restructuring savings have started to more visibly flow through its results.

 

Write to Connor Hart at connor.hart@wsj.com

 

(END) Dow Jones Newswires

January 26, 2026 10:34 ET (15:34 GMT)

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