UPS Reports Fourth-Quarter Earnings and Layoffs
UPS, the logistics company, shared its quarterly results and announced job cuts on Tuesday. Investors seemed to respond positively, nudging the stock up by 0.2%, although this was a bit behind the S&P 500, which rose by 0.4%.
For the last quarter of 2025, UPS’s revenue reached over $24 billion, but its non-GAAP operating income fell nearly 7% from the previous year, landing at almost $2.9 billion or $2.38 per share.
Interestingly, these figures exceeded what analysts had anticipated. They were expecting revenue just above $24 billion and a non-GAAP net income of $2.20 per share.
Given that it was a significant quarter—especially with the holiday rush—UPS saw a 3% dip in domestic operations, primarily due to fewer shipments. Conversely, its international revenue grew, with the revenue per piece shipped rising by over 7%.
UPS also confirmed its quarterly dividend remains at $1.64 per share, consistent with the last four distributions and translating to a yield of 6.1%.
The company plans to reduce its workforce by up to 30,000 employees this year. The CFO mentioned that this would involve job cuts and offer a voluntary severance program specifically for full-time drivers.
Despite these developments, UPS’s stock has been struggling, particularly as their once-close relationship with Amazon has started to fray. Many investors are uneasy about losing a key partner, even though the partnership wasn’t particularly lucrative for UPS.
Overall, while UPS’s recent performance wasn’t overly impressive, it wasn’t entirely disappointing either. It seems to have shifted into more of an income-focused stock, and if they can sustain their current dividend, it might still appeal to investors.
If you’re considering investing in United Parcel Service, there are a few things to keep in mind.
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