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UPS Beats Q4, Lifts 2026 Outlook, Plans Up to 30,000 Job Cuts

The company is shifting toward higher‑margin shipments to rebuild profitability following its pullback from low‑profit Amazon volume.

Overview

  • UPS reported fourth-quarter 2025 revenue of $24.5 billion and adjusted EPS of $2.38, topping Wall Street estimates.
  • For 2026, UPS guided to about $89.7 billion in revenue and an adjusted operating margin of roughly 9.6%.
  • Management said up to 30,000 operational roles will be reduced in 2026, primarily through attrition with a second voluntary separation program for full-time drivers.
  • UPS completed retirement of its MD-11 fleet in Q4 and recorded a $137 million after-tax write-off as part of $238 million in charges.
  • The transformation program targets about $3 billion in 2026 savings, and UPS declared a $1.64 first-quarter dividend after returning $6.4 billion to shareholders in 2025.