UPS raises full-year forecast after upbeat quarter, wraps up Amazon volume transition

In April, the firm said Amazon represented 8.8% of its business at the end of the first quarter, a sharp decline from a peak contribution of more than 13%.

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.

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.

Rival FedEx in June reported a drop in margins in its core delivery segment from a year earlier.

UPS and FedEx have been grappling with weaker shipment volumes as U.S. tariffs and the elimination of the "de minimis" exemption for low-value imports curtailed e-commerce flows from China-linked retailers such as Shein and Temu.

The policy changes have weighed on delivery demand, prompting UPS to focus on rebuilding profitability and stabilizing volumes.