United Parcel Service Inc (UPS) shares fell 6% following its second-quarter 2026 earnings report. While the company beat analyst expectations with adjusted earnings per share of $1.76 and revenue of $22.8 billion, and raised its full-year 2026 outlook, investors focused on weaker near-term domestic expectations, lower international operating profit, and significant restructuring charges.

UPS's management indicated a flat third-quarter domestic revenue outlook with declining average daily volume, raising concerns about recovery timelines. The international segment's operating profit declined to $623 million, partly due to higher expenses related to geopolitical conflicts in the Middle East. The company also recorded $891 million in after-tax transformation charges, primarily from a workforce reduction involving approximately 7,500 drivers.