UPS Q4 2025 Earnings Call Highlights
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 11h ago
0mins
Source: seekingalpha
- Performance Exceeds Expectations: UPS reported Q4 revenue of $24.5 billion and operating profit of $2.9 billion, with an operating margin of 11.8%, reflecting strong revenue quality and cost management despite the gradual reduction in Amazon business.
- Amazon Business Adjustment: UPS plans to reduce another 1 million Amazon packages per day in 2026, expecting $3 billion in savings; while short-term revenue and margin pressures are anticipated, long-term network efficiency and profit growth are expected.
- Accelerated Automation Progress: UPS aims for 68% of U.S. packages to be processed through automated facilities by the end of 2026, which is expected to significantly lower cost per package, thereby enhancing overall operational efficiency and profitability.
- International Business Growth: Despite challenges in the international segment with Q4 revenue at $5 billion and operating profit at $908 million, management anticipates gradual recovery in international business growth in the second half following network reconfiguration.
Analyst Views on UPS
Wall Street analysts forecast UPS stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for UPS is 107.06 USD with a low forecast of 80.00 USD and a high forecast of 126.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
19 Analyst Rating
9 Buy
9 Hold
1 Sell
Moderate Buy
Current: 106.970
Low
80.00
Averages
107.06
High
126.00
Current: 106.970
Low
80.00
Averages
107.06
High
126.00
About UPS
United Parcel Service, Inc. provides a range of integrated logistics solutions for customers in more than 200 countries and territories. Its U.S. Domestic Package segment offers a range of United States domestic air and ground package transportation services. Its air portfolio offers time-definite, same-day, next-day, two-day and three-day delivery alternatives as well as air cargo services. Its ground network enables customers to ship using its day-definite ground service. UPS SurePost provides residential ground service for customers with non-urgent, lightweight residential shipments. Its International Package segment consists of small package operations in Europe, Indian sub-continent, Middle East and Africa, Canada and Latin America and Asia. It offers a selection of guaranteed day- and time-definite international shipping services. Its supply chain solutions consist of forwarding, logistics, customized third-party logistics and specialized cold chain transportation solutions.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
