UPS expects third-quarter domestic revenue to be flat but CEO tells CNBC the company is through its 'bumps' — SkimNews
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- UPS beat Q2 expectations with adjusted EPS of $1.76 vs. $1.66 expected and revenue of $22.8B vs. $21.81B expected, yet shares fell roughly 4% in early trading
- UPS raised full-year 2026 guidance to consolidated revenue of $91.2B and adjusted diluted EPS of roughly $7.22, calling it the 'fourth straight quarter of delivering results that exceeded our expectations'
- UPS expects Q3 domestic revenue to be flat year-over-year, with domestic average daily volume falling in the mid-single digits due to seasonal decline and the Amazon glide-down
- UPS completed its Amazon glide-down, eliminating about 2 million pieces per day of 'lower-quality Amazon volume' and removing roughly $4.5B in related expenses; CEO Tomé noted volume actually grew in Q2 excluding Amazon
- UPS's healthcare logistics segment generated more than $3B in revenue for a second consecutive quarter, supported by over 20 million square feet of cold chain capabilities across 36+ countries
- UPS posted a 6% rise in domestic revenue, a 12.5% jump in international revenue, and 7.8% growth in supply chain solutions, with the China-to-US lane returning to year-over-year growth beginning in May
Why it matters: UPS shares fell roughly 4% despite the Q2 beat, signaling market concern over flat Q3 domestic guidance and the Amazon volume cut. Removing 2 million daily pieces of lower-margin volume reframes the flat outlook as deliberate margin discipline rather than demand weakness, with CEO Tomé saying the leaner network is positioned for operating leverage as volume grows.
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