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UPS Stock Rises After Q2 Earnings Beat and Raised Full-Year Guidance
United Parcel Service (UPS) shares gained in pre-market trading Tuesday after the logistics giant reported second-quarter financial results that surpassed analyst expectations and raised its full-year forecast.
The rally came despite a weaker tone in the broader market, where investors were focused on upcoming earnings from technology companies and the Federal Reserve’s latest policy decision.
Earnings Beat and Raised Outlook
UPS announced strong results for the second quarter of 2026, outperforming Wall Street estimates on key metrics. The company reported:
- Adjusted EPS: $1.76, versus a consensus estimate of $1.66.
- Consolidated Revenue: $22.8 billion, compared to an estimate of $21.84 billion.
Revenue for the quarter increased 7.7% year-over-year from $21.2 billion in the same period of 2025, according to the company's report. Based on this performance, UPS lifted its full-year 2026 guidance to approximately $7.22 in adjusted EPS and $91.2 billion in revenue, both above prior analyst forecasts.
Strategic Progress on Amazon Volume
AdIn a statement, CEO Carol Tomé attributed the strong performance to a key strategic milestone, noting that the company's workforce had successfully completed the "Amazon volume glide-down and related network reconfiguration initiatives as designed." Tomé added that the results marked an "expected and significant shift in our performance."
This development signals to investors that the company has effectively managed a planned reduction in volume from its largest customer, a transition that has been closely monitored by the market.
Analyst Sentiment and Market Reaction
Investors responded positively to the report, with UPS stock rising 2.1% in pre-open trading, according to Investing.com. The upbeat earnings followed increasingly constructive views from analysts.
Stephens analyst Bascome Majors recently resumed coverage on the stock with an 'Overweight' rating and a $135 price target, citing an improving transport cycle. Separately, Citi had raised its price target on UPS shares to $132, maintaining a 'Buy' rating.
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