UPS Price Target Raised to $128 After Q4 Revenue Beat, Plans 30,000 Job Cuts
Bernstein raised its UPS price target to $128 from $125 after UPS delivered stronger-than-expected Q4 revenue and broadly met its 2026 guidance while reporting weaker margins. UPS also plans to cut 30,000 jobs and close 24 facilities in 2026 to reduce lower-margin volumes and improve profitability.
1. Bernstein Raises Price Target
Bernstein raised its price target on United Parcel Service to $128 from $125 and reiterated an Outperform rating after UPS delivered a strong Q4 performance. The firm cited robust revenue growth but noted margins exited the year weaker than expected, balancing a softer margin outlook.
2. Q4 Financial Performance and Outlook
UPS reported Q4 2025 revenue above projections and issued 2026 guidance broadly in line with consensus. While revenues exceeded expectations, operating margins underperformed forecasts, prompting analysts to weigh current strengths against future margin pressures.
3. Job Cuts and Facility Closures
UPS plans to cut up to 30,000 roles and close 24 facilities in 2026, primarily through attrition and voluntary buyouts of drivers. The cost reductions aim to lower exposure to dilutive, low-margin Amazon deliveries and shift focus toward more profitable services.