Revenue has stayed in a $21-25B band with gross margin ranging from roughly 13% to 21% and operating margin compressing to 7.6% in Q3 2026 from 10.5% in Q4 2025, indicating limited profit scaling against sales.
United Parcel Service, Inc. (UPS) annual income statement — 28-year revenue, gross profit & net income history
| 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 | 91.37B | 88.66B | 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 % | 2.17% | -2.46% | 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 | 74.98B | 72.63B | 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 | - | 81.92% | 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 | 16.39B | 16.03B | 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 % | 17.93% | 18.08% | 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 % | - | -6.03% | -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 | 9.87B | 8.16B | 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 | - | 9.21% | 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 | 0 | 0 | 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 | - | - | 9.55% | 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 | 4M | 8.16B | -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 | 6.52B | 7.87B | 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 % | 7.13% | 8.87% | 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 % | - | -9.42% | -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 | 10.42B | 11.61B | 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 % | 11.4% | 13.1% | 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 % | -12.97% | -5.54% | -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) | 3.9B | 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 | 6.65B | 8.18B | 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 | -1.58B | -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 | 1.34B | 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 | -688M | -703M | -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 | 5.83B | 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 % | 6.38% | 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 | 1.41B | 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 % | 24.12% | 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 | 4.42B | 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 % | 4.84% | 6.28% | 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 % | -19.63% | -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) | 4.42B | 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 | 32M | 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) | 5.19 | 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 % | -19.75% | -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 | 852M | 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 | 851M | 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% |
Quick answers to the most common questions about buying UPS stock.
For fiscal year 2025, United Parcel Service, Inc. (UPS) reported total revenue of $88.66B. This represents a 257.7% 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 $7.87B, resulting in an operating profit margin of 8.9%. This margin reflects the operational efficiency of the business before interest and taxes.
United Parcel Service, Inc. (UPS) generated $16.03B in gross profit for the year, representing a gross profit margin of 18.1%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Persistent revenue erosion
Metrics are mathematically derived from official filings.
Top Line Contraction Persisting Despite Stabilization
Based on reported quarterly figures, UPS revenue has hovered near $21-25B across the last ten quarters, with year-over-year growth turning negative in several recent periods and the latest quarter showing a 6.7% gain against a weak prior comparison.
The pattern suggests volume normalization following the pandemic surge has not been fully offset by yield gains, leaving the top line vulnerable to further erosion. The rebound in the most recent quarter may reflect easier comparables rather than a durable inflection, so investors should monitor whether sequential growth holds through the next seasonal peak.
Gross Margin Volatility Tied to Mix Shifts
As reported in financial statements, UPS gross margin ranged from roughly 13% to 21% over the period, with the strongest readings in quarters carrying heavier fourth-quarter peak volume and the weakest in the second quarter of 2026.
This swing appears more consistent with seasonal density and fuel surcharge timing than with a structural repricing of the network. The compression in the 13.3% quarter suggests that labor and fixed network costs absorbed a meaningful share of revenue when volume was soft, which may indicate limited near-term operating leverage.
Operating Income Tracking Revenue Rather Than Outpacing It
Based on EDBL-style reporting conventions applied to these figures, operating margin moved between roughly 4% and 11%, with the second quarter of 2026 at 4.1% and the fourth quarter of 2025 at 10.5%, indicating limited scaling of profit against sales.
Operating income has moved broadly in step with revenue, suggesting the cost base is largely fixed and cyclical rather than showing clear efficiency gains. The data does not clearly demonstrate that overhead reduction is flowing through to profit, so the margin recovery thesis warrants further investigation.
EPS Recovery Partly Reflects Share and Base Effects
According to recent SEC filings as summarized here, diluted EPS of $1.37 in the latest quarter versus $1.55 a year earlier shows an 11.6% decline, while net margin of 5.1% sits below the 6.0% to 8.0% range seen in 2024 and 2025 periods.
Net income quality appears reasonable given modest stock-based compensation, but the year-over-year EPS trend remains negative despite the headline EPS beat cited in recent context. Investors should separate operating recovery from the timing of non-operating items, since the reported figures alone cannot confirm the sustainability of the earnings base.
Margin Recovery Thesis Faces Structural Headwinds
Based on reported figures, the bear case centers on operating margin sitting near 4-8% in recent quarters versus double-digit levels in late 2024 and 2025, a trend that peers like Old Dominion at 24.8% operating margin highlight as a sizable gap.
Short-sellers would likely argue that labor cost escalation and volume diversion to e-commerce insourcing have reset the earnings base lower on a durable basis. The combination of negative trailing revenue growth and a leverage profile that appears elevated relative to peers suggests the market may be correct to discount the margin rebound until multiple quarters confirm it.