UPS Q2 2026: adjusted EPS $1.76 rises 13.5% while GAAP profit halves
UPS beat on adjusted earnings and raised full-year guidance, but the GAAP numbers look ugly: net income fell 52.9% to $604 million and GAAP EPS dropped to $0.71 from $1.51. The gap is one charge — $1.172 billion of pre-tax restructuring costs, $1.05 a share — tied to the completed Driver Choice workforce program. Read the adjusted figures for the operating trend; read the GAAP figures for what shareholders actually own.
1 · Expected vs. Actual
Free preview belowGAAP diluted EPS was $0.71, down from $1.51, while non-GAAP adjusted diluted EPS was $1.76, up 13.5% from $1.55 and 4.9% above the $1.6784 consensus estimate. The $1.172 billion pre-tax transformation charge, $891 million after tax, is essentially the entire gap between the two numbers. Judge the quarter on the adjusted figure, but note that first-half adjusted EPS of $2.82 is still below last year's $3.04.
Revenue rose 7.6% to $22.83 billion from $21.22 billion a year earlier, and all three segments grew. U.S. Domestic Package brought in $14.93 billion (+6.0%), International $5.04 billion (+12.5%) and Supply Chain Solutions $2.86 billion (+7.8%). The growth is price, not volume: U.S. Domestic average daily volume fell to 16,002 thousand pieces from 16,553 thousand.
Management raised full-year 2026 revenue guidance to about $91.2 billion from $89.7 billion, non-GAAP adjusted operating profit to about $8.65 billion and adjusted diluted EPS to about $7.22. That requires a steep second-half ramp: first-half revenue was $44.04 billion and first-half adjusted EPS was $2.82, so the guide implies roughly $47.16 billion of revenue and $4.40 of adjusted EPS in the back half. Capital expenditures are confirmed at about $3.0 billion, with dividend payments of around $5.4 billion.
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Figures on this page come from the company's original SEC filings. The analysis is generated automatically and checked against validation rules, but may still contain errors or omissions. Not investment advice. · Generated 2026-09-17
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