Shares of United Parcel Service fell 3.7% in morning trading after the company reported second-quarter results that showed a steep decline in profitability despite beating revenue and adjusted earnings estimates. UPS posted revenue of $22.8 billion and adjusted earnings of $1.76 per share, both above Wall Street expectations, and raised its full-year revenue guidance. However, the operating margin contracted to 4.1% from 8.6% a year earlier, signaling that expenses grew faster than revenue and raising concerns about underlying profitability. The stock remains up 6.1% year-to-date but is trading 10.7% below its 52-week high of $120 from February 2026.
United Parcel Service IncOperating margin contracted sharply to 4.1% from 8.6%, raising profitability concerns.