UPS Completes Amazon Volume Reduction, Raises 2026 Outlook

On July 28, United Parcel Service (UPS) reported second-quarter 2026 consolidated revenue of $22.8 billion, a 7.6 % year-over-year increase, and adjusted earnings of $1.76 per share, beating expectations. The company announced that its 18-month plan to shed lower-margin Amazon shipments—known as the “glide-down”—is complete. Amazon now accounts for roughly 9 % of UPS revenue, down from a pandemic peak above 13 %. UPS raised its full-year revenue guidance to $91.2 billion and its adjusted EPS outlook to $7.22.

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UPS began trimming Amazon-related volume in early 2024, targeting a reduction of more than half by mid-2026. The move was meant to replace “extraordinarily dilutive” e-commerce parcels with higher-margin services such as healthcare logistics, international freight, and SMB packages. The effort involved facility closures, job cuts, and expanded automation and RFID tracking.

UPS Is Shrinking Package Volume, Making Money With Visibility

• Revenue & Profitability: $22.8 billion revenue; adjusted operating profit $2.10 billion; operating margin 9.2 % (up 100 bps YoY).

Benzinga

• Amazon Volume: About 2 million packages per day removed; Amazon share of revenue now 9 % (down ~100 bps).

[UPS Q2 2026 Earnings Call] Amazon Glide Down Over, U.S. Operating Profit Soars 21% to $1.2 Billion, Guidance Lifted — BigGo Finance

• Package Volume: U.S. daily volume fell 3.3 % YoY to 16 million packages; SMB volume rose 4.3 % YoY to 34.5 % of U.S. volume.

Bloomberg

• Pricing: Revenue per piece increased 9.3 % domestically and 18.9 % internationally.

UPS Q2 Earnings Beat as Pricing and Segment Growth Accelerate

• Automation: 68.5 % of U.S. volume processed in automated facilities, cutting cost per piece by roughly 28 % versus non-automated hubs.

[UPS Q2 2026 Earnings Call] Amazon Glide Down Over, U.S. Operating Profit Soars 21% to $1.2 Billion, Guidance Lifted — BigGo Finance

• Healthcare: Over $3 billion in healthcare logistics revenue for the quarter.

UPS Raises 2026 Revenue Outlook To $91.2 Billion Following Second-Quarter Growth

Shifting away from low-margin Amazon parcels positions UPS to capture higher-value segments, especially temperature-controlled healthcare shipments and SMB e-commerce. RFID and AI-driven visibility are being marketed as sticky services that can reduce churn, illustrated by a high-end jeweler’s recent switch to UPS after RFID deployment.

UPS Is Shrinking Package Volume, Making Money With Visibility

Analyst EPS forecasts vary modestly: Reuters cited a consensus of $7.11 per share, while Bloomberg referenced $7.22. No other substantive discrepancies were identified.

UPS Q2 Earnings Beat as Pricing and Segment Growth Accelerate

• “Our second-quarter results marked an expected and significant shift in our performance,” — CEO Carol Tomé

Transport Topics

UPS expects domestic revenue to be flat in the third quarter, with average daily volume projected to decline in the mid-single-digit range. The company reaffirmed its 2026 capital-expenditure target of roughly $3 billion and its dividend plan of about $5.4 billion, subject to board approval. Expansion of RFID coverage and the Digital Access Program, which generated $1.4 billion in quarterly revenue, will support growth in SMB and healthcare segments through the remainder of the year.

CNBC