4Q25 Earnings Call January 27, 2026 1 | . | | --- | | . | | . | | . | | • | | . | | •• | | . | © 2026 United Parcel Service of America, Inc. UPS, the UPS brandmark, and the color dark brown tone are trademarks of United Parcel Service of America, Inc. All rights reserved. 2 UPS Speakers CAROL B. TOMÉ Chief Executive Officer BRIAN DYKES Chief Financial Officer PJ GUIDO Investor Relations Officer © 2026 United Parcel Service of America, Inc. UPS, the UPS brandmark, and the color dark brown tone are trademarks ...

Core Insights - United Parcel Service (UPS) reported an increase in profit for the fourth quarter, despite incurring a charge related to the retirement of one of its aircraft fleets [1] - The company has provided guidance for higher revenue in the upcoming year, indicating positive growth expectations [1] Financial Performance - UPS experienced higher profit in the fourth quarter, showcasing resilience in its financial performance [1] - The profit increase occurred even with the financial impact of retiring an aircraft fleet, suggesting effective cost management and operational efficiency [1] Future Outlook - The guidance for higher revenue in the coming year reflects the company's optimistic outlook and potential for growth in the logistics and delivery sector [1]

UPS forecasts full-year sales above Wall Street’s expectations as it forges ahead with plans to cut less-profitable package volume out of its network https://t.co/Qcqo5cEJBO ...

Core Viewpoint - FedEx has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system emphasizes the correlation between changes in earnings estimates and stock price movements, driven by institutional investors who adjust their valuations based on these estimates [4][6]. - An increase in earnings estimates typically leads to a higher fair value for a stock, prompting institutional investors to buy or sell, which subsequently affects the stock price [4]. FedEx's Earnings Outlook - For the fiscal year ending May 2026, FedEx is projected to earn $18.38 per share, with a 2.5% increase in the Zacks Consensus Estimate over the past three months [8]. - The upgrade to Zacks Rank 2 positions FedEx in the top 20% of Zacks-covered stocks, suggesting a strong potential for stock price appreciation in the near term [10]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a proven track record of Zacks Rank 1 stocks generating an average annual return of +25% since 1988 [7]. - The system maintains a balanced distribution of ratings, ensuring that only the top 5% of stocks receive a "Strong Buy" rating, while the next 15% receive a "Buy" rating [9].

United Parcel Service, Inc. (NYSE:UPS) will release earnings results for the fourth quarter, before the opening bell on Tuesday, Jan. 27.Analysts expect the Atlanta, Georgia-based company to report quarterly earnings at $2.2 per share, down from $2.75 per share in the year-ago period. The consensus estimate for United Parcel Service's quarterly revenue is $24.01 billion, versus $25.3 billion a year earlier, according to data from Benzinga Pro.On Oct. 28, UPS reported better-than-expected third-quarter finan ...

Core Viewpoint - The analyst has maintained a "Hold" rating on United Parcel Service (UPS) for an extended period, expressing skepticism about the company's future prospects despite recent executive changes [1]. Group 1 - The analyst intends to sell their entire position in UPS shares within the next 72 hours, indicating a shift in sentiment towards the stock [2].

Core Viewpoint - United Parcel Service, Inc. (NYSE:UPS) is considered a potentially undervalued stock with a strong market position, but analysts have mixed views on its short-term performance due to market conditions and operational changes [1][2][4]. Group 1: Analyst Ratings and Price Targets - JPMorgan analyst Brian Ossenbeck raised the price target for UPS from $97.00 to $99.00 while maintaining a 'Neutral' rating, citing a potential short-term pullback due to expected seasonal weakness in Q1 spot truckload rates [2]. - Bernstein analyst David Vernon upgraded UPS to 'Outperform' with a price target of $125.00, arguing that concerns regarding dividends are overstated [3]. Group 2: Financial Performance and Projections - UPS shares fell approximately 20% in 2025, resulting in a dividend yield of 6% and a payout ratio of about 98% [4]. - Analysts forecast EPS growth of 4% in 2026 and 11% in 2027, contingent on the successful execution of the company's strategic plan [4]. Group 3: Company Operations - UPS focuses on global package delivery and supply chain solutions across various segments, including U.S. domestic, international, and supply chain [5].

Core Viewpoint - United Parcel Service, Inc. (NYSE:UPS) is considered a potentially undervalued stock with a strong market position, but analysts have mixed views on its short-term performance due to market conditions and operational changes [1][2][4]. Group 1: Analyst Ratings and Price Targets - JPMorgan analyst Brian Ossenbeck raised the price target for UPS from $97.00 to $99.00 while maintaining a 'Neutral' rating, citing a potential short-term pullback due to expected seasonal weakness in Q1 spot truckload rates [2]. - Bernstein analyst David Vernon upgraded UPS to 'Outperform' with a price target of $125.00, arguing that concerns regarding dividends are overstated [3]. Group 2: Financial Performance and Projections - UPS shares fell approximately 20% in 2025, resulting in a dividend yield of 6% and a payout ratio of about 98% [4]. - Analysts forecast EPS growth of 4% in 2026 and 11% in 2027, contingent on the successful execution of the company's strategic plan [4]. Group 3: Company Operations - UPS focuses on global package delivery and supply chain solutions across various segments, including U.S. domestic, international, and supply chain operations [5].

Core Viewpoint - Investing in high-yielding dividend stocks can provide extra cash flow for reinvestment or daily expenses [1] Group 1: United Parcel Service (UPS) - UPS has experienced a decline of over 17% in value this year due to tariffs and poor economic conditions affecting global trade [4] - The company has announced 48,000 job cuts to improve its financial performance amidst current challenges, with free cash flow reaching at least $1.4 billion in three of the past quarters, sufficient to cover dividend payments [5] - UPS offers a high dividend yield of 6.1%, significantly above the S&P 500 average of 1.1%, with a potential annual dividend income of approximately $370 from a $6,000 investment [6] Group 2: Enbridge - Enbridge provides a dividend yield of 5.8%, slightly lower than UPS, but is recognized for long-term stability and consistent dividend growth, having raised its quarterly dividend by 3% for the 31st consecutive year [7] - The company benefits from stable earnings due to long-term contracts and is not highly vulnerable to fluctuating commodity prices, with distributable cash flow totaling CA$9.2 billion in the first nine months of 2025, up from CA$8.9 billion in the same period last year [8]

Core Viewpoint - The future outlook for United Parcel Service (UPS) appears positive despite recent challenges, with potential for recovery and growth driven by strategic changes in revenue quality, network efficiency, and tariff management. Group 1: Revenue Quality - UPS's revenue declined by 3.7% year over year in Q3, a planned reduction as part of a broader strategy to enhance revenue quality [4][5] - The company sold its Coyote Logistics unit, leading to a significant drop in supply chain solutions revenue, while also reducing shipment volumes for Amazon to focus on higher-margin business [5] - U.S. revenue per piece increased by 9.8% year over year in Q3, and UPS aims to replace lost revenue with higher-margin business, exemplified by the acquisition of Andleuer Healthcare Group [6] Group 2: Network Efficiency - UPS is undergoing its most extensive network reconfiguration in history, having closed 93 buildings, including 19 in Q3, and implemented a voluntary retirement program for drivers [8] - The company expects to announce approximately $3.5 billion in cost reductions for 2025, contributing to improved profitability [8][9] - U.S. operating margin increased by 10 basis points in Q3, indicating early success from these efficiency efforts [9] Group 3: Tariff Management - The uncertainty surrounding tariffs has somewhat resolved, alleviating challenges faced by UPS, particularly in higher-margin international lanes [10] - While some tariff impacts may still affect small- and medium-sized businesses in 2026, the overall outlook for UPS regarding tariffs is improving [10] - UPS is leveraging agentic AI technology to enhance customs brokerage capabilities, helping customers navigate trade complexities and reinforcing its role in global commerce [11]