UPS · Q2 FY2026
UNITED PARCEL SERVICE INC Q2 FY2026 earnings analysis
By SageNoodle ResearchBearish
| Metric | Actual | Estimate | Result |
|---|---|---|---|
| Revenue | $22.83B | $21.22B (yr ago) | Beat |
| EPS | $0.71 | $1.51 (yr ago) | Miss |
| Free Cash Flow | $0.17B | -$0.78B (yr ago) | Beat |
| Gross Margin | N/M for this issuer | N/M (yr ago) | Miss |
| Operating Margin | 4.1% (pre-tax margin basis) | 8.6% (yr ago) | Miss |
What changed
Revenue increased 7.6% year over year to $22.83 billion, but the pre-tax margin contracted by 4.5 percentage points to 4.1%. EPS fell 53.0% to $0.71, while quarterly free cash flow improved to $0.17 billion from negative $0.78 billion, although free cash flow is not a primary analytical measure under the supplied financial-company convention.
Impact on the investment thesis
There is no prior SageNoodle fair value to revise. This update establishes a base fair value of $106.25 per share: revenue improved, but the sharp margin and EPS deterioration prevents a more constructive valuation.