New York, January 27, 2026, 21:29 ET — The market has closed.
- Shares of UPS ended at $107.20, gaining roughly 0.2% following a sharper rise earlier.
- The company announced plans to slash up to 30,000 jobs and shut down 24 buildings during the first half of 2026.
- UPS projected 2026 revenue near $89.7 billion and posted a fourth-quarter adjusted profit of $2.38 per share.
United Parcel Service, Inc. (UPS) shares ended Tuesday slightly higher, up roughly 0.2% at $107.20. The parcel giant revealed intentions to slash as many as 30,000 jobs and shutter 24 facilities in the first half of 2026. Earlier, the stock had jumped over 4% before pulling back. (The Washington Post)
These cuts are crucial—they lie at the heart of UPS’ pivot away from lower-margin Amazon deliveries. This shift has pushed the company to overhaul its network. UPS management frames the change as a way to streamline operations and focus more on higher-value sectors like healthcare logistics. (Financial Times)
CEO Carol Tomé told analysts UPS plans to “glide down another million pieces per day” of Amazon volume in 2026 as it continues reshaping its network. The company forecast 2026 revenue around $89.7 billion, topping analysts’ nearly $88 billion estimates. UPS also signaled revenue will dip in the first half as it wraps up the Amazon pullback and adapts to the end of U.S. “de minimis” duty-free treatment for low-value imports. FedEx shares gained 2.6% midday, with Evercore ISI analyst Jonathan Chappell noting a “better-than-expected pricing theme” boosted the quarter. (Reuters)
UPS forecasted a non-GAAP adjusted operating margin near 9.6% for 2026 and signaled around $3.0 billion in capital expenditures. The company also projected an effective tax rate close to 23%. (United Parcel Service, Inc.)
A recent filing revealed UPS’s fourth-quarter revenue hit $24.5 billion, with diluted earnings of $2.10 per share. On an adjusted basis—excluding fleet write-offs and transformation costs—earnings climbed to $2.38 per share. The company recorded $238 million in after-tax charges, including a $137 million write-off tied to its MD-11 aircraft fleet. In the U.S. domestic segment, average revenue per package, or revenue per piece as UPS calls it, rose 8.3%, while international revenue per piece grew 7.1%. (SEC)
On Tuesday, UPS shares fluctuated from $103.83 up to $112.67, with roughly 14.4 million shares exchanged during the session.
CFO Brian Dykes described the planned cuts as “a tactical move” during UPS’s earnings call, noting the company aims to achieve them via attrition and a voluntary buyout offer for full-time drivers. He added that UPS will close 24 buildings in the first half of the year and is reviewing more facilities for possible shutdowns later in 2026. (AP News)
The Teamsters issued a warning that UPS might bring back a “disrespectful buyout program,” insisting “Teamsters still know our worth,” according to a union statement. Dykes also revealed UPS intends to ramp up automation throughout its network, aiming for roughly $3 billion in savings linked to the drop in Amazon volume. (Axios)
The plan hinges on execution: pricing must stay steady as volumes adjust, and cost cuts need to kick in quickly to protect margins. If demand falls faster than expected or labor issues crop up around buyouts and staffing, the narrative could quickly change.
U.S. markets are closed, but all eyes remain on the upcoming round of broker estimate revisions and specifics about which facilities will close and their timelines. Transport stocks often shift together following major earnings reports, and UPS just gave investors plenty to chew on.
UPS announced a quarterly dividend of $1.64 per share, set for payment on March 5 to shareholders registered by Feb. 17. (Ups)
