UPS reported mixed fourth-quarter results with revenue declining year-over-year, primarily due to volume decreases in its U.S. Domestic and Supply Chain Solutions segments. However, the company saw revenue growth in its International segment and improved operating margins in its U.S. Domestic and Supply Chain Solutions segments on a non-GAAP adjusted basis, signaling a focus on revenue quality and operational efficiency.
Non-GAAP Adjusted Consolidated Operating Margin improved to 11.8% in Q4 2025 from 10.1% in Q4 2024 for U.S. Domestic Package.
positiveInternational Package revenue increased 2.5% driven by a 7.1% increase in revenue per piece.
positiveSupply Chain Solutions operating margin improved to 9.8% on a GAAP basis and 10.3% on a non-GAAP adjusted basis in Q4 2025, up from 7.4% and 9.3% respectively in Q4 2024.
positiveFull-year 2025 non-GAAP adjusted operating profit was $8.7 billion, an increase from $8.5 billion in 2024.
positiveConsolidated revenues declined to $24.5 billion in Q4 2025 from $25.1 billion in Q4 2024.
negativeU.S. Domestic Package revenue declined 3.2% driven by an expected decline in volume.
negativeSupply Chain Solutions revenue declined 12.7%, primarily due to a decline in volume in the Mail Innovations business.
negativeU.S. Domestic Package GAAP operating margin decreased to 8.5% from 9.7% year-over-year.
attentionInternational Package GAAP operating margin decreased to 17.5% from 20.7% year-over-year.
attentionFull-year 2025 GAAP diluted EPS was $6.56, a decrease from $7.16 in 2024.
negativeMargin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.
| Segment | Current | Prior Yr | YoY | % Total |
|---|---|---|---|---|
U.S. Domestic Package | N/A | — | — | — |
International Package | N/A | — | — | — |
Supply Chain Solutions | N/A | — | — | — |
| Total Revenue | $0.00M | — | — | 100.0% |
Segment performance shows business unit health and growth drivers.
Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.
Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.
UPSers across the globe delivered best-in-class service during peak for the eighth year in a row and outperformed our financial expectations in the fourth quarter.
2025 was a year of considerable progress for UPS as we took action to strengthen our revenue quality and build a more agile network.
Looking ahead, upon completion of the Amazon glide-down, 2026 will be an inflection point in the execution of our strategy to deliver growth and sustained margin expansion.
Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.
Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.