Revenue growth remains in negative territory with a 1.6% decline in 2026Q1, while operating margins have contracted significantly from 11.8% in 2024Q4 to 6.0% in 2026Q1.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 |
|---|
| Sales/Revenue | 88.33B | 88.64B | 90.89B | 90.75B | 100.03B | 97.2B | 84.43B | 73.92B | 71.91B | 66.55B | 60.5B | 58.05B | 58.26B | 55.49B | 54.06B | 53.21B | 49.45B | 45.12B | 51.49B | 49.69B | 47.55B | 42.58B | 36.58B | 33.48B | 31.27B | 30.65B | 29.77B | 27.05B | 24.79B |
| Revenue Growth % | -2.69% | -2.49% | 0.16% | -9.29% | 2.91% | 15.13% | 14.23% | 2.79% | 8.06% | 10% | 4.22% | -0.35% | 4.98% | 2.64% | 1.61% | 7.6% | 9.6% | -12.37% | 3.61% | 4.51% | 11.66% | 16.4% | 9.25% | 7.08% | 2.04% | 2.94% | 10.05% | 9.13% | - |
| Cost of Goods Sold | 72.31B | 72.21B | 73.84B | 73.04B | 79.95B | 79.77B | 62.65B | 57.82B | 57.74B | 53.2B | 48.16B | 45.94B | 46.55B | 44.08B | 43.7B | 42.05B | 39.7B | 37.19B | 40.75B | 44.37B | 36.41B | 32.27B | 27.6B | 8.15B | 7.77B | 7.89B | 7.54B | 6.64B | 6.24B |
| COGS % of Revenue | - | 81.47% | 81.23% | 80.49% | 79.93% | 82.07% | 74.2% | 78.23% | 80.3% | 79.94% | 79.61% | 79.14% | 79.9% | 79.43% | 80.84% | 79.02% | 80.28% | 82.43% | 79.16% | 89.28% | 76.58% | 75.77% | 75.44% | 24.35% | 24.84% | 25.75% | 25.33% | 24.55% | 25.17% |
| Gross Profit | 16.03B | 16.42B | 17.06B | 17.71B | 20.08B | 17.43B | 21.78B | 16.09B | 14.17B | 13.35B | 12.34B | 12.11B | 11.71B | 11.41B | 10.36B | 11.16B | 9.75B | 7.93B | 10.73B | 5.33B | 11.13B | 10.32B | 8.98B | 25.33B | 23.5B | 22.75B | 22.23B | 20.41B | 18.55B |
| Gross Margin % | 18.15% | 18.53% | 18.77% | 19.51% | 20.07% | 17.93% | 25.8% | 21.77% | 19.7% | 20.06% | 20.39% | 20.86% | 20.1% | 20.57% | 19.16% | 20.98% | 19.72% | 17.57% | 20.84% | 10.72% | 23.42% | 24.23% | 24.56% | 75.65% | 75.16% | 74.25% | 74.67% | 75.45% | 74.83% |
| Gross Profit Growth % | - | -3.72% | -3.66% | -11.82% | 15.19% | -19.97% | 35.36% | 13.6% | 6.12% | 8.2% | 1.87% | 3.43% | 2.6% | 10.14% | -7.16% | 14.47% | 22.97% | -26.13% | 101.54% | -52.17% | 7.93% | 14.83% | -64.53% | 7.77% | 3.29% | 2.36% | 8.91% | 10.05% | - |
| Operating Expenses | 8.4B | 7.95B | 8.37B | 8.34B | 7.11B | 4.33B | 13.95B | 8.22B | 7.09B | 5.86B | 7.27B | 4.77B | 5.64B | 4.39B | 9.11B | 5.02B | 4.01B | 4.07B | 4.78B | 4.45B | 4.49B | 4.13B | 3.84B | 29.03B | 28.2B | 26.68B | 25.26B | 21.28B | 15.46B |
| OpEx % of Revenue | - | 8.97% | 9.21% | 9.19% | 7.11% | 4.45% | 16.52% | 11.12% | 9.86% | 8.8% | 12.01% | 8.21% | 9.68% | 7.9% | 16.85% | 9.44% | 8.1% | 9.01% | 9.28% | 8.96% | 9.43% | 9.69% | 10.5% | 86.7% | 90.17% | 87.07% | 84.84% | 78.66% | 62.36% |
| Selling, General & Admin | 2.54B | 8.32B | 8.68B | 8.34B | 7.11B | 4.33B | 13.95B | 8.22B | 7.09B | 5.86B | 7.27B | 4.77B | 5.64B | 4.39B | 9.11B | 5.02B | 4.01B | 4.07B | 4.78B | 4.45B | 4.49B | 4.13B | 3.84B | 19.33B | 17.94B | 17.4B | 16.55B | 15.29B | 14.35B |
| SG&A % of Revenue | - | 9.39% | 9.55% | 9.19% | 7.11% | 4.45% | 16.52% | 11.12% | 9.86% | 8.8% | 12.01% | 8.21% | 9.68% | 7.9% | 16.85% | 9.44% | 8.1% | 9.01% | 9.28% | 8.96% | 9.43% | 9.69% | 10.5% | 57.72% | 57.38% | 56.77% | 55.58% | 56.5% | 57.87% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 2M | -371M | -311M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1.47B | 10.26B | 1.07B | 900M | 1.22B | 1.11B |
| Operating Income | 7.63B | 8.47B | 8.69B | 9.37B | 12.97B | 13.11B | 7.84B | 7.88B | 7.07B | 7.49B | 5.07B | 7.34B | 6.07B | 7.03B | 1.25B | 6.14B | 5.74B | 3.86B | 5.95B | 873M | 6.65B | 6.19B | 5.14B | 4.45B | 4.1B | 3.96B | 4.51B | 3.99B | 3.09B |
| Operating Margin % | 8.63% | 9.56% | 9.56% | 10.33% | 12.96% | 13.48% | 9.28% | 10.66% | 9.84% | 11.26% | 8.38% | 12.65% | 10.42% | 12.66% | 2.31% | 11.54% | 11.61% | 8.56% | 11.56% | 1.76% | 13.98% | 14.54% | 14.06% | 13.27% | 13.1% | 12.93% | 15.16% | 14.74% | 12.47% |
| Operating Income Growth % | - | -2.44% | -7.32% | -27.74% | -1.06% | 67.27% | -0.51% | 11.34% | -5.6% | 47.78% | -30.96% | 21.04% | -13.64% | 461.63% | -79.62% | 6.9% | 48.68% | -35.13% | 581.9% | -86.87% | 7.4% | 20.38% | 15.7% | 8.52% | 3.38% | -12.19% | 13.14% | 29.06% | - |
| EBITDA | 10.46B | 12.22B | 12.29B | 12.74B | 16.16B | 16.06B | 10.53B | 10.24B | 9.28B | 9.78B | 7.29B | 9.43B | 7.99B | 8.89B | 3.11B | 7.92B | 7.53B | 5.61B | 7.77B | 2.62B | 8.4B | 7.83B | 6.69B | 5.99B | 5.56B | 5.36B | 5.68B | 5.13B | 1.98B |
| EBITDA Margin % | 11.84% | 13.79% | 13.53% | 14.04% | 16.15% | 16.52% | 12.48% | 13.85% | 12.91% | 14.69% | 12.06% | 16.24% | 13.72% | 16.03% | 5.75% | 14.89% | 15.24% | 12.43% | 15.09% | 5.27% | 17.66% | 18.4% | 18.28% | 17.9% | 17.78% | 17.48% | 19.1% | 18.95% | 7.98% |
| EBITDA Growth % | -15.06% | -0.61% | -3.48% | -21.16% | 0.6% | 52.46% | 2.91% | 10.29% | -5.06% | 34.01% | -22.63% | 18% | -10.14% | 186.04% | -60.74% | 5.12% | 34.32% | -27.78% | 196.68% | -68.82% | 7.17% | 17.19% | 11.54% | 7.81% | 3.77% | -5.75% | 10.88% | 159.2% | - |
| D&A (Non-Cash Add-back) | 2.83B | 3.75B | 3.61B | 3.37B | 3.19B | 2.95B | 2.7B | 2.36B | 2.21B | 2.28B | 2.22B | 2.08B | 1.92B | 1.87B | 1.86B | 1.78B | 1.79B | 1.75B | 1.81B | 1.75B | 1.75B | 1.64B | 1.54B | 1.55B | 1.46B | 1.4B | 1.17B | 1.14B | -1.11B |
| EBIT | 7.79B | 8.47B | 8.3B | 9.35B | 15.52B | 17.28B | 2.53B | 6.28B | 6.59B | 7.55B | 5.48B | 7.61B | 4.91B | 7.05B | 1.36B | 6.43B | 5.97B | 3.86B | 5.46B | 677M | 6.72B | 6.25B | 5.07B | -3.82B | 3.18B | 3.96B | -3.03B | -2.73B | -3.15B |
| Net Interest Income | -1.06B | -1.01B | -861M | -775M | -694M | -683M | -684M | -629M | -572M | -409M | -128M | -262M | -217M | -299M | -283M | -560M | -358M | -407M | -315M | -147M | -125M | -68M | -67M | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 8M | 219M | 9M | 60M | 73M | 100M | 94M | 85M | 87M | 127M | 99M | 86M | 104M | 82M | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 1.06B | 1.01B | 861M | 775M | 694M | 683M | 684M | 629M | 572M | 417M | 347M | 271M | 277M | 372M | 383M | 654M | 443M | 494M | 442M | 246M | 211M | 172M | 149M | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -860M | -1.31B | -1.24B | -798M | 1.86B | 3.49B | -5.99B | -2.22B | -1.05B | -357M | 65M | -3M | -1.43B | -352M | -277M | -362M | -219M | -496M | -938M | -442M | -139M | -116M | -221M | -75M | 913M | -25M | 322M | -1.82B | -188M |
| Pretax Income | 6.76B | 7.16B | 7.44B | 8.57B | 14.82B | 16.59B | 1.84B | 5.65B | 6.02B | 7.14B | 5.14B | 7.34B | 4.64B | 6.67B | 974M | 5.78B | 5.52B | 3.37B | 5.01B | 431M | 6.51B | 6.08B | 4.92B | 4.37B | 5.01B | 3.94B | 4.83B | 2.09B | 2.9B |
| Pretax Margin % | 7.66% | 8.08% | 8.19% | 9.45% | 14.82% | 17.07% | 2.18% | 7.65% | 8.37% | 10.72% | 8.49% | 12.65% | 7.96% | 12.03% | 1.8% | 10.86% | 11.17% | 7.46% | 9.74% | 0.87% | 13.69% | 14.27% | 13.45% | 13.05% | 16.02% | 12.85% | 16.24% | 7.72% | 11.71% |
| Income Tax | 1.52B | 1.59B | 1.66B | 1.86B | 3.28B | 3.71B | 501M | 1.21B | 1.23B | 2.23B | 1.71B | 2.5B | 1.6B | 2.3B | 167M | 1.97B | 2.04B | 1.21B | 2.01B | 49M | 2.31B | 2.21B | 1.59B | 1.47B | 1.75B | 1.51B | 1.9B | 1.21B | 1.16B |
| Effective Tax Rate % | 22.41% | 22.22% | 22.31% | 21.75% | 22.1% | 22.33% | 27.17% | 21.44% | 20.4% | 31.27% | 33.2% | 34.02% | 34.61% | 34.49% | 17.15% | 34.14% | 36.85% | 36.07% | 40.12% | 11.37% | 35.45% | 36.3% | 32.28% | 33.68% | 35.04% | 38.4% | 39.3% | 57.71% | 40.01% |
| Net Income | 5.25B | 5.57B | 5.78B | 6.71B | 11.55B | 12.89B | 1.34B | 4.44B | 4.79B | 4.91B | 3.43B | 4.84B | 3.03B | 4.37B | 807M | 3.8B | 3.49B | 2.15B | 3B | 382M | 4.2B | 3.87B | 3.33B | 2.9B | 3.18B | 2.4B | 2.93B | 883M | 1.74B |
| Net Margin % | 5.94% | 6.29% | 6.36% | 7.39% | 11.54% | 13.26% | 1.59% | 6.01% | 6.66% | 7.37% | 5.67% | 8.34% | 5.2% | 7.88% | 1.49% | 7.15% | 7.05% | 4.77% | 5.83% | 0.77% | 8.84% | 9.09% | 9.11% | 8.65% | 10.18% | 7.83% | 9.86% | 3.26% | 7.02% |
| Net Income Growth % | -10.37% | -3.63% | -13.8% | -41.91% | -10.41% | 859.79% | -69.75% | -7.33% | -2.32% | 42.96% | -29.17% | 59.76% | -30.65% | 441.76% | -78.79% | 9.06% | 62.08% | -28.34% | 686.13% | -90.91% | 8.58% | 16.11% | 15.01% | -8.93% | 32.64% | -18.23% | 232.28% | -49.28% | - |
| Net Income (Continuing) | 5.25B | 5.57B | 5.78B | 6.71B | 11.55B | 12.89B | 1.34B | 4.44B | 4.79B | 4.91B | 3.43B | 4.84B | 3.03B | 4.37B | 807M | 3.8B | 3.49B | 2.15B | 3B | 382M | 4.2B | 3.87B | 3.33B | 2.9B | 3.25B | 2.42B | 2.93B | 2.33B | 1.74B |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 28M | 28M | 25M | 8M | 17M | 16M | 12M | 16M | 16M | 30M | 24M | 21M | 17M | 14M | 80M | 73M | 68M | 66M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 6.18 | 6.56 | 6.76 | 7.80 | 13.20 | 14.68 | 1.54 | 5.11 | 5.51 | 5.61 | 3.87 | 5.35 | 3.28 | 4.61 | 0.83 | 3.84 | 3.48 | 2.14 | 2.94 | 0.36 | 3.86 | 3.47 | 2.93 | 2.55 | 2.81 | 2.10 | 2.50 | 0.77 | 1.57 |
| EPS Growth % | -9.91% | -2.96% | -13.33% | -40.91% | -10.08% | 853.25% | -69.86% | -7.26% | -1.78% | 44.96% | -27.66% | 63.11% | -28.85% | 455.42% | -78.39% | 10.34% | 62.62% | -27.21% | 716.67% | -90.67% | 11.24% | 18.43% | 14.9% | -9.25% | 33.81% | -16% | 224.68% | -50.96% | - |
| EPS (Basic) | - | 6.56 | 6.76 | 7.81 | 13.26 | 14.75 | 1.55 | 5.14 | 5.53 | 5.63 | 3.89 | 5.38 | 3.31 | 4.65 | 0.84 | 3.88 | 3.51 | 2.16 | 2.96 | 0.36 | 3.87 | 3.48 | 2.95 | 2.57 | 2.84 | 2.13 | 2.54 | 0.79 | 1.59 |
| Diluted Shares Outstanding | 850M | 850M | 856M | 860M | 871M | 878M | 871M | 869M | 870M | 875M | 887M | 906M | 924M | 948M | 969M | 991M | 1B | 1B | 1.02B | 1.06B | 1.09B | 1.12B | 1.14B | 1.14B | 1.13B | 1.14B | 1.17B | 1.15B | 1.11B |
| Basic Shares Outstanding | 850M | 849M | 855M | 859M | 871M | 874M | 867M | 864M | 866M | 871M | 883M | 901M | 916M | 940M | 960M | 981M | 994M | 998M | 1.02B | 1.06B | 1.08B | 1.11B | 1.13B | 1.13B | 1.12B | 1.13B | 1.16B | 1.12B | 1.09B |
| Dividend Payout Ratio | - | 96.88% | 93.38% | 80.08% | 44.28% | 26.66% | 251.23% | 71.94% | 62.85% | 56.49% | 77.03% | 52.13% | 78.03% | 51.69% | 263.94% | 52.5% | 52.12% | 81.37% | 73.89% | 445.81% | 37.53% | 35.94% | 36.24% | 2.42% | 26.68% | 35.68% | 26.79% | 76.1% | 26.77% |
Labor cost structure rigidity
As indicated by the most recent quarterly data, UPS revenue growth has remained in negative territory, with the 2026Q1 figure showing a 1.6% decline, reflecting ongoing challenges in volume recovery and the broader normalization of demand across the integrated freight and logistics network.
The consistent negative revenue growth suggests that the company is struggling to offset the post-pandemic volume normalization with pricing actions. Investors should monitor whether the recent USPS air cargo contract win can serve as a sufficient catalyst to reverse this multi-quarter trend of top-line erosion.
Based on reported financial statements, the gross margin has compressed to 17.0% in 2026Q1, down from the 21.1% peak observed in 2025Q4, highlighting the difficulty of maintaining pricing power while absorbing significant increases in labor-related costs within the core domestic package segment.
The volatility in gross margins appears to be a direct consequence of the rigid wage structure established in the latest Teamsters contract. This suggests that the company's ability to protect profitability is currently constrained by its high-fixed-cost operating model, which lacks the flexibility to adjust rapidly to volume fluctuations.
According to the income statement data, the operating margin has fallen to 6.0% in 2026Q1, a significant contraction from the 11.8% level seen in 2024Q4, which implies that the company is currently failing to achieve the necessary operating leverage to scale income against its cost base.
The inability of operating income to scale alongside gross profit suggests that SG&A and other overhead costs are not being managed with sufficient discipline to offset the current revenue headwinds. This trend warrants further investigation into whether automation initiatives are providing the expected efficiency gains or if they are being outpaced by inflationary pressures.
Financial filings reveal that the 27.1% year-over-year decline in EPS for 2026Q1 underscores the vulnerability of the bottom line to volume diversion, suggesting that the market's optimism regarding a rapid recovery in profitability may be disconnected from the current reality of the company's cost structure.
Short-sellers may focus on the potential for permanent margin impairment if the company cannot successfully pivot to higher-margin healthcare logistics to replace lost B2C volume. The reliance on non-operating items and the potential for pension accounting volatility further complicate the assessment of true underlying earnings quality.
Quick answers to the most common questions about buying UPS stock.
For fiscal year 2025, United Parcel Service, Inc. (UPS) reported total revenue of $88.64B. This represents a 257.6% increase compared to $24.79B in 1998.
United Parcel Service, Inc. (UPS) is profitable, generating $5.57B in net income for the fiscal year ending 2025 with a net profit margin of 6.3%.
United Parcel Service, Inc. (UPS) reported an operating income of $8.47B, resulting in an operating profit margin of 9.6%. This margin reflects the operational efficiency of the business before interest and taxes.
United Parcel Service, Inc. (UPS) generated $16.42B in gross profit for the year, representing a gross profit margin of 18.5%. This demonstrates the company's core pricing power and production efficiency.