UPS Shares Drop After Earnings Despite Raised Guidance
United Parcel Service (NYSE: UPS) stock fell nearly 7% on July 28, 2026, following its second-quarter earnings report. While the company exceeded expectations and raised full-year revenue guidance to $91.2 billion from $89.7 billion, investors expressed concerns about its strategic direction and performance in key segments. UPS highlighted progress in shifting away from low-margin Amazon deliveries toward higher-margin markets like small businesses and healthcare. However, management's underwhelming U.S. Domestic segment forecast — including a mid-single-digit decline in average daily volume and lower-than-expected third-quarter operating margins — raised red flags among investors. The company is counting heavily on its fourth-quarter peak season to meet targets. Despite the positive headline numbers, market skepticism remains due to weaker guidance for key metrics like adjusted operating margin (9.48% vs. 9.6%) and cautious outlooks in core business segments.
Topics: Amazon.com guidance update second-quarter earnings strategic restructuring UPS