UPS earned $16m of operating profit on $14.9bn of United States revenue, and raised its outlook for the year in the same release

Sixteen million dollars. That is what the United States delivery business at UPS earned from operations in the quarter, on revenue of $14.9bn, and a year ago the same segment earned $916m.

The figure comes with an explanation attached, and the explanation is most of the story. UPS reported consolidated revenue of $22.8bn on Tuesday before the market opened, with consolidated operating profit of $930m and non-GAAP adjusted consolidated operating profit of $2.1bn. The difference between those two numbers is $891m of after-tax charges, worth $1.05 per diluted share, which the company excludes from its adjusted figures and describes as consisting primarily of employee separation costs from its recently completed Driver Choice Program. On the adjusted basis, the U.S. Domestic segment earned $1,188m against $982m a year ago.

Segment revenue rose 6.0 percent. Revenue per piece rose 9.3 percent.

International was the fastest-growing part of the business, with revenue up 12.5 percent to $5,044m and revenue per piece up 18.9 percent. Its operating profit fell, to $623m from $672m, and its margin was 12.4 percent on both a GAAP and an adjusted basis. Supply Chain Solutions grew 7.8 percent to $2,860m and earned $291m, which the company attributes to growth in forwarding and logistics including healthcare.

The guidance moved up on all three headline measures. Full-year consolidated revenue is now expected at approximately $91.2bn, adjusted operating profit at approximately $8.65bn and adjusted diluted earnings per share at approximately $7.22. Capital expenditure is still expected at about $3.0bn, dividend payments at around $5.4bn subject to board approval, and the effective tax rate at approximately 23.0 percent.

Behind the guidance sits a restructuring the company has been running for eighteen months. UPS says it achieved approximately $1.2bn of programme benefits in the first six months of 2026 and expects approximately $3bn for the full year. It has incurred $1.8bn of costs to date, $1.2bn of that in 2026, and expects to exclude between $1.3bn and $1.5bn of cost from adjusted operating expense across the year, of which $1.1bn relates to the Driver Choice Program. The initiatives are expected to conclude by 2027.

Carol Tomé, the chief executive, thanked employees for their work over the past eighteen months and said the company had completed its Amazon glide down and related network reconfiguration initiatives as designed. She described the quarter as an expected and significant shift in performance.

Management holds its call at 8:30 a.m. eastern time on Tuesday.