UPS

Q2 FY2026 EarningsQ2 FY26 results were mixed, with revenue of $22.8B beating the $21.8B consensus (+4.5% variance), while normalized EPS of $1.76 slightly exceeded the $1.66 mean estimate. Operating profit was significantly impacted by $1.1B in one-time separation costs related to the 'Driver Choice Program,' leading to a GAAP operating margin of 4.1% vs. 8.6% YoY. While U.S. Domestic revenue grew 6.0% YoY, it was driven by fuel surcharges and pricing quality rather than volume, as average daily volume fell 3.3% following a planned 50% reduction from the company's largest customer.