Shares of UPS dropped after the company released its second-quarter earnings report, which did not meet investor expectations and came without updated guidance for the rest of the year. The stock fell between 2.7% and 3.8% during early trading, showing that investors are worried about the company’s performance.
In the second quarter of 2025, UPS reported adjusted earnings per share (EPS) of $1.55, which is lower than the $1.79 from the same quarter last year. This was also just below what analysts expected, which was $1.56. Revenue was $21.2 billion, down 2.8% from last year, but still slightly better than predicted.
Domestic package revenue went down 0.8%, mostly because fewer people shipped packages. However, the price per package increased. UPS’s international business grew by 2.6%, but the company’s supply chain and freight services dropped sharply, falling nearly 18.3%. This was blamed on lower global demand and the sale of some business assets.
Once again, UPS chose not to provide an updated forecast for the full year. Company leaders mentioned that global economic uncertainty and new trade policies, such as U.S. tariffs on imports from China, are making it difficult to predict what’s next. This lack of clarity continues to make investors uneasy.
In short:
- UPS earnings came in at $1.55 per share, missing analyst estimates.
- Revenue dropped 2.8% to $21.2 billion, though slightly better than expected.
- No updated forecast was given due to global uncertainty.
Because of these factors, UPS stock has now fallen by around 20% in 2025, performing worse than competitors like FedEx. Many analysts are staying cautious, with some advising to hold the stock until the company shows signs of improvement.
