United Parcel Service, Inc. (UPS) AI Stock Analysis

United Parcel Service, Inc. (UPS) is a logistics and transportation provider operating through two primary segments: U.S. Domestic Package and International Package. The U.S. Domestic Package segment delivers letters, small packages, and freight through air and ground networks. The International Package segment offers guaranteed shipping across Europe, the Asia Pacific region, Canada, Latin America, the Indian sub-continent, the Middle East, and Africa, covering approximately 200 countries and territories. UPS operates approximately 121,000 package cars, vans, tractors, and motorcycles, alongside 59,000 air cargo containers. It also provides truckload brokerage, healthcare supply chain solutions, shipping technologies, and financial and insurance services.

Annual revenue moved from $97.20B in FY2021 to a peak of $100.03B in FY2022, before dropping to $90.75B in FY2023, $90.89B in FY2024, and $88.66B in FY2025, reflecting a 5-year revenue CAGR of 1.0%. Net income decreased from $12.89B in FY2021 to $5.57B in FY2025, with net margin narrowing from 13.3% to 6.3%. Operating margin contracted from 13.5% in FY2021 to 8.9% in FY2025. In the latest quarter ended June 30, 2026, quarterly revenue grew 7.6% year-over-year, while quarterly earnings declined 53.0%. For the trailing twelve months, revenue was $89.93B and operating margin stood at 9.0%.

As of June 30, 2026, UPS held $4.65B in cash and short-term investments against total debt of $28.67B, resulting in net debt of $24.02B. The company recorded a current ratio of 1.18 and a debt-to-equity ratio of 1.90, supported by $15.07B in shareholders' equity. In FY2025, operating cash flow reached $8.45B and free cash flow was $4.76B. Cash deployment in FY2025 included $3.69B in capital expenditures, $1.00B in share buybacks, and $5.40B in dividends paid.

UPS traded at $97.48 as of October 16, 2026, representing an enterprise value of $105.54B and a market cap of $82.93B. Its trailing P/E of 18.1x and forward P/E of 12.0x compare to 28.5x and 20.7x, respectively, for the median of its S&P 500 Industrials peers. The company's EV-to-EBITDA stands at 9.8x versus the peer median of 17.7x, and its price-to-sales is 0.9x compared to 3.3x. Over the past year, UPS gained 21.3% compared to a 16.8% return for the S&P 500 (SPY), though its 5-year return of -36.3% lagged the index's 83.0% gain.

UPS pays a quarterly dividend with an annual forward dividend of $6.56, resulting in a dividend yield of 6.73%. The stock carries a payout ratio of 94.4% and has maintained 28 consecutive years paid. Over the past 5 years, dividend growth annualized reached 10.2%. The last ex-dividend date was August 17, 2026.

Analyst coverage includes 14 Strong Buy, 12 Hold, 2 Sell, and 1 Strong Sell ratings. The mean price target is $114.27, representing a 17.2% upside over the last close of $97.48. For the current fiscal year ending December 31, 2026, consensus estimates project EPS of $7.20 on revenue of $91.59B. UPS has beaten EPS expectations in each of the last 4 quarters. The next earnings date is October 27, 2026.

This page is an AI-written research summary of United Parcel Service, Inc. (UPS). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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