UPS announced plans to eliminate up to 30,000 operational positions in 2026 through attrition and a voluntary separation program for full-time drivers, following the 48,000 jobs cut in 2025. CFO Brian Dykes told analysts that reducing total operational hours by 25 million will save the company a significant portion of the $3 billion expected from unwinding its Amazon partnership. In addition, UPS has identified 24 facilities for closure in the first half of the year, on top of the 93 buildings shuttered in 2025, as part of its network reconfiguration under ‘Transformation 2.0.’

For Q4 2025, UPS reported consolidated revenue of $24.5 billion, a 3 percent decline year-over-year, but ahead of consensus estimates. Adjusted operating profit reached $2.9 billion, down 7 percent from the prior year but exceeding analyst forecasts. GAAP operating profit was $2.6 billion, after a $238 million charge primarily related to the accelerated retirement of the MD-11 aircraft fleet. The company maintained its quarterly dividend at $1.64 per share, representing a 6.1 percent yield, and returned $6.4 billion to shareholders through dividends and share repurchases in 2025.

CEO Carol Tomé emphasized that 2026 will mark the inflection point in UPS’s shift from volume growth to margin expansion. The company reaffirmed full-year revenue guidance of approximately $89.7 billion and targets a non-GAAP adjusted operating margin of 9.6 percent. UPS plans $3 billion in capital expenditures to deploy further automation and network optimization, while focusing on high-margin segments such as healthcare logistics, small-and-medium-business deliveries and international B2B shipments. International package revenue grew 2.5 percent in Q4, with an adjusted operating margin of 18.0 percent, underscoring the profitability of cross-border services.