MW UPS delivers on fourth-quarter numbers, and its stock rises

By Jules Rimmer

UPS shares have had a strong start to 2026 after a difficult three years

Stripping out the write-off of its MD-11 aircraft fleet and its workforce-restructuring charges, UPS's numbers were 8% ahead of consensus estimates.

Tuesday's fourth-quarter results from shipping giant United Parcel Service (UPS) were met with a warm reception. Revenues, at $24.5 billion, were fractionally ahead of estimates, but adjusted earnings per share of $2.38 beat the $2.20 consensus predicted on FactSet.

Shortly after the numbers were released, UPS shares traded more than 4% higher at $111.50, reflecting both better figures and improved guidance.

Diluted earnings per share were $2.10, reflecting one-off charges of 28 cents to account for a write-off of the company's MD-11 aircraft fleet and transformation charges related to the corporate restructuring that has been under way for some time under Chief Executive Carol Tomé.

Based in Atlanta, UPS has been struggling recently as it diversified from the low-margin concentration of its operations with Amazon.com (AMZN). "Looking ahead, upon completion of the Amazon glide-down, 2026 will be an inflection point in the execution of our strategy," Tomé said.

The company's guidance for full-year 2026 sales of almost $90 billion is 2% higher than what analysts currently expect, according to FactSet. The share price reflects the difficulties it has experienced in growing revenues. In 2022, UPS reported $100 billion in revenue - a level it has failed to match since and which led to a halving of the share price over that time frame.

Trade frictions between the U.S. and China, combined with a shift away from Amazon were the main headwinds for growth. But investors are more upbeat on the stock, which rallied more than 10% to start the year.

While revenue growth is difficult for UPS, its price-to-earnings ratio is around 30% lower than the index average, while its dividends remain attractive to investors looking for income. The quarterly dividend of $1.64 per share equates to an annualized yield above 6%. That compares favorably with the 1.8% offered by the S&P 500 index and is more than double short-term interest rates.

The analyst community remains lukewarm with their recommendations on the stock. Two-thirds of those contributing to FactSet rate UPS a hold or a sell rating. The highest target price is just $108, several percentage points below the current price.

-Jules Rimmer

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January 27, 2026 07:35 ET (12:35 GMT)

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