Zacks Research Issues Pessimistic Outlook for UPS Earnings

United Parcel Service, Inc. (NYSE:UPS) – Analysts at Zacks Research decreased their Q1 2026 earnings estimates for United Parcel Service in a research note issued to investors on Tuesday, February 10th. Zacks Research analyst Team now forecasts that the transportation company will earn $1.05 per share for the quarter, down from their previous estimate of $1.36. The consensus estimate for United Parcel Service’s current full-year earnings is $7.95 per share. Zacks Research also issued estimates for United Parcel Service’s Q2 2026 earnings at $1.53 EPS, Q4 2026 earnings at $2.90 EPS, FY2026 earnings at $7.16 EPS, Q3 2027 earnings at $1.71 EPS and Q4 2027 earnings at $3.27 EPS.

United Parcel Service (NYSE:UPS) last announced its quarterly earnings results on Tuesday, January 27th. The transportation company reported $2.38 earnings per share for the quarter, topping analysts’ consensus estimates of $2.20 by $0.18. United Parcel Service had a net margin of 6.28% and a return on equity of 38.30%. The company had revenue of $24.48 billion for the quarter, compared to analysts’ expectations of $23.91 billion. During the same period last year, the firm posted $2.75 earnings per share. The business’s quarterly revenue was down 3.2% compared to the same quarter last year.

Several other brokerages also recently issued reports on UPS. Jefferies Financial Group increased their price target on United Parcel Service from $115.00 to $130.00 and gave the stock a “buy” rating in a report on Wednesday, January 28th. HSBC upgraded United Parcel Service from a “hold” rating to a “buy” rating in a research report on Wednesday, January 28th. Oppenheimer raised their target price on shares of United Parcel Service from $107.00 to $115.00 and gave the stock an “outperform” rating in a report on Wednesday, January 28th. Wall Street Zen raised shares of United Parcel Service from a “sell” rating to a “hold” rating in a research note on Saturday, November 1st. Finally, Bank of America raised shares of United Parcel Service from an “underperform” rating to a “neutral” rating and set a $114.00 price objective for the company in a research report on Friday, January 9th. Two investment analysts have rated the stock with a Strong Buy rating, nine have assigned a Buy rating, fourteen have given a Hold rating and three have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of “Hold” and a consensus price target of $113.67.

United Parcel Service Stock Performance

Shares of United Parcel Service stock opened at $120.04 on Thursday. The stock’s fifty day simple moving average is $105.07 and its 200 day simple moving average is $94.41. The company has a current ratio of 1.22, a quick ratio of 1.30 and a debt-to-equity ratio of 1.45. The company has a market capitalization of $101.84 billion, a PE ratio of 18.30, a PEG ratio of 1.88 and a beta of 1.11. United Parcel Service has a 12 month low of $82.00 and a 12 month high of $123.70.

United Parcel Service Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, March 5th. Stockholders of record on Tuesday, February 17th will be issued a $1.64 dividend. The ex-dividend date is Tuesday, February 17th. This represents a $6.56 dividend on an annualized basis and a dividend yield of 5.5%. United Parcel Service’s dividend payout ratio (DPR) is 100.00%.

Insider Activity at United Parcel Service

In other news, insider Norman M. Brothers, Jr. sold 25,014 shares of the business’s stock in a transaction on Wednesday, January 28th. The shares were sold at an average price of $106.15, for a total value of $2,655,236.10. The sale was disclosed in a document filed with the SEC, which is accessible through this link. 0.13% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On United Parcel Service

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Brighton Jones LLC grew its stake in United Parcel Service by 63.8% in the fourth quarter. Brighton Jones LLC now owns 12,126 shares of the transportation company’s stock valued at $1,529,000 after purchasing an additional 4,723 shares in the last quarter. Sivia Capital Partners LLC acquired a new stake in shares of United Parcel Service in the 2nd quarter valued at approximately $277,000. Vest Financial LLC grew its stake in shares of United Parcel Service by 39.2% in the second quarter. Vest Financial LLC now owns 11,745 shares of the transportation company’s stock valued at $1,186,000 after buying an additional 3,309 shares in the last quarter. Envestnet Portfolio Solutions Inc. increased its holdings in United Parcel Service by 44.2% during the second quarter. Envestnet Portfolio Solutions Inc. now owns 67,531 shares of the transportation company’s stock worth $6,817,000 after buying an additional 20,704 shares during the last quarter. Finally, Cornerstone Wealth Group LLC increased its holdings in United Parcel Service by 3.9% during the second quarter. Cornerstone Wealth Group LLC now owns 2,557 shares of the transportation company’s stock worth $258,000 after buying an additional 97 shares during the last quarter. 60.26% of the stock is currently owned by institutional investors and hedge funds.

Key United Parcel Service News

Here are the key news stories impacting United Parcel Service this week:

• Positive Sentiment: Bernstein raised its price target on UPS to $128 (from $125) and kept an Outperform rating after UPS’s stronger-than-expected Q4, which supports buy-side momentum and helps sentiment. Bernstein Raises UPS Price Target to $128 After Strong Q4 Beat
• Positive Sentiment: Unusual options activity (“whale” bets) in UPS suggests some traders are positioning for further upside or volatility, which can amplify intraday buying pressure. This Is What Whales Are Betting On United Parcel Service
• Neutral Sentiment: Wall Street coverage remains mixed but constructive — consensus target prices sit above current levels for some firms, providing a baseline for further analyst-driven moves. What Are Wall Street Analysts’ Target Price for United Parcel Service Stock?
• Negative Sentiment: UPS is involved in a dispute tied to deliveries for e-commerce firm Temu and related billing/contract issues (reported ~$44M contested), raising questions about claims exposure and contract terms with large shippers. UPS, Temu’s Irish entities locked in $44 million dispute
• Negative Sentiment: Labor/legal risk: the Teamsters allege UPS’s buyout program violates their agreement and union litigation is active — any escalation or contract fallout could increase labor costs or operational disruption. UPS Buyout Program Violates Teamsters Agreement, Union Claims
• Negative Sentiment: Zacks cut near-term EPS estimates (Q1/Q2 FY2027 and FY2027/FY2028 revisions lower), which pressures forward earnings expectations and could limit multiple expansion if revisions continue. (Source: Zacks/MarketBeat coverage)

About United Parcel Service

United Parcel Service (NYSE: UPS) is a global package delivery and supply chain management company that provides a broad range of transportation, logistics and e-commerce services. Its core business centers on small-package delivery and last-mile distribution for business and individual customers, supported by a network of ground transportation, air cargo operations (UPS Airlines) and sorting facilities. In addition to parcel delivery, UPS offers freight transportation, contract logistics, warehousing, customs brokerage and reverse-logistics solutions designed to support domestic and international commerce.

The company traces its roots to 1907 when it began as a small messenger service in the United States and later evolved into the United Parcel Service.