Why Did UPS Stock Plunge 5.99% Ahead of Earnings?

On July 29, 2025, United Parcel's stock experienced a significant drop of 5.99% in pre-market trading, reflecting investor concerns and market sentiment ahead of its upcoming earnings report.

United Parcel Service (UPS) is facing a bearish outlook as analysts anticipate a decline in its second-quarter earnings. The company's stock has seen a 2.2% gain over the past week, but this is likely due to pre-earnings speculation rather than a positive outlook. Analysts from Evercore have reduced their EPS estimates for UPS, citing a continued deceleration in domestic demand and increased costs.

The upcoming earnings report is expected to highlight the impact of tariffs on UPS's volume and cost-cutting measures. Analysts are closely watching how the company navigates these challenges, which could significantly affect its financial performance. The focus on cost-cutting measures and the impact of tariffs on volume are critical factors that investors will be scrutinizing in the earnings report.