UPS shares rise as fourth-quarter earnings beat expectations

Investing.com -- United Parcel Service (NYSE: UPS) reported better-than-expected fourth-quarter 2025 results on Thursday, with earnings and revenue surpassing analyst estimates despite volume declines. The package delivery giant’s shares jumped 3.8% following the announcement.

UPS posted adjusted earnings per share of $2.38, exceeding the analyst consensus of $2.20. Revenue came in at $24.5 billion, above the estimated $24.01 billion, though down from $25.3 billion in the same quarter last year. The company also provided an optimistic outlook for 2026, projecting revenue of approximately $89.7 billion, ahead of analyst expectations of $87.95 billion.

The U.S. Domestic segment saw revenue decline 3.2% to $16.8 billion due to lower volume, but revenue per piece increased by 8.3%, reflecting the company’s focus on improving revenue quality. The International segment posted a 2.5% revenue increase to $5 billion, driven by a 7.1% rise in revenue per piece.

"I want to thank UPSers across the globe for their tireless commitment to serving our customers as we delivered best-in-class service during peak for the eighth year in a row and outperformed our financial expectations in the fourth quarter," said Carol Tomé, UPS chief executive officer.

For the full year 2025, UPS reported revenue of $88.7 billion with an adjusted operating margin of 9.8%. The company expects its adjusted operating margin to be approximately 9.6% in 2026.

UPS also declared a quarterly dividend of $1.64 per share.

Looking ahead, Tomé noted, "2026 will be an inflection point in the execution of our strategy to deliver growth and sustained margin expansion" following the completion of what she referred to as the "Amazon glide-down."

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