UPS hikes full-year forecasts after Amazon delivery reductions

UPS expects to generate revenue of $91.2 billion in 2026, up from its previous forecast of $89.7 billion. It now expects full-year adjusted earnings of $7.22 per share.

It forecast roughly flat revenue for the current third quarter versus the year earlier period and operating margin of about 7%.

UPS' U.S. domestic adjusted operating margin was 8% in the second quarter, while its international segment reported a margin of 12.4%, highlighting significantly higher profitability in the company's overseas business.

"If margin upside continues at U.S. Domestic, investors may gain confidence that the cost realignment associated with the now-completed Amazon glide-down is tracking ahead of plan, which will be viewed positively," said Evercore ISI analyst Jonathan Chappell.

Atlanta-based UPS reported adjusted operating profit of $2.10 billion. It posted adjusted profit per share of $1.76 for the quarter ended June 30.