United Parcel 2025 Q2 Earnings Weak Performance as Net Income Declines 8.9%

United Parcel (UPS) reported its fiscal 2025 Q2 earnings on Aug 06th, 2025, with both revenue and earnings slipping. The stock has continued to decline in the post-earnings period, with the strategy of buying UPS after a revenue beat proving unprofitable. The company emphasized its strategic initiatives to improve long-term financial performance.

United Parcel reported total revenue of $21.22 billion in Q2 2025, a 2.7% decline from $21.82 billion in the prior year. The U.S. Domestic Package segment generated $14.08 billion in revenue, while International Package revenue came in at $4.49 billion. Supply Chain Solutions contributed $2.65 billion to the company’s total revenue.

United Parcel’s earnings per share (EPS) fell 8.5% to $1.51 in Q2 2025, compared to $1.65 in Q2 2024. Net income also declined by 8.9%, from $1.41 billion to $1.28 billion. Despite the drop, the company has maintained profitability for over two decades in the same fiscal quarter, showcasing operational resilience.

The stock price of United Parcel has seen continued downward pressure, with a 0.63% drop in the latest trading day, a 1.07% decline for the week, and a significant 14.48% drop month-to-date. A post-earnings trading strategy that involved buying UPS after a revenue beat resulted in a -13.72% return over 30 days, significantly underperforming the benchmark, which returned 89.28%. The strategy’s Sharpe ratio was -0.23, indicating high risk and negative returns.

Carol Tomé, UPS’s CEO, highlighted the company’s strategic initiatives, including Network Reconfiguration and Efficiency Reimagined, which are expected to deliver $3.5 billion in cost savings in 2025. Tomé expressed confidence in the company’s long-term financial performance and thanked employees for their dedication amid a challenging trade environment.

The company reaffirmed its full-year 2025 guidance, including $3.5 billion in capital expenditures, $1.4 billion in pension contributions, $5.5 billion in dividend payments, and $1.0 billion in share repurchases. However, due to macroeconomic uncertainties, UPS did not provide forward-looking revenue or earnings guidance.

Additional news from July 29, 2025, included UPS’s second-quarter 2025 consolidated revenues of $21.2 billion and a non-GAAP adjusted operating margin of 8.8%. The company reported diluted earnings per share of $1.51, with a net charge of $29 million for GAAP results. UPS also confirmed progress on its strategic initiatives and reaffirmed its commitment to cost savings and efficiency improvements.