How does United Parcel Service (UPS) make money?

United Parcel Service (UPS) generates revenue primarily from International Package, which accounted for 71.7% of total revenue in TTM through Q2 2026. The company reported $89.9B in revenue and converted 5.1% of it into net profit, equivalent to roughly $4.57B in net income — what's left after the cost of revenue, operating expenses, interest, and income taxes.

What is the gross profit margin of United Parcel Service (UPS)?

United Parcel Service (UPS) reported a gross profit margin of 16.6% in TTM through Q2 2026, equivalent to $15B in gross profit on $89.9B in revenue. Gross margin measures how much of each dollar of revenue remains after the direct cost of producing or delivering the product — a higher figure typically signals pricing power, scale, or a less capital-intensive business model.

What is the operating profit margin of United Parcel Service (UPS)?

United Parcel Service (UPS) reported an operating profit margin of 7.3% in TTM through Q2 2026, equivalent to $6.58B in operating income. Operating margin captures profitability after research & development, sales & marketing, and general & administrative expenses — but before interest, taxes, and one-off items — and is the cleanest single read on the underlying business's efficiency.

What is the net profit margin of United Parcel Service (UPS)?

United Parcel Service (UPS) reported a net profit margin of 5.1% in TTM through Q2 2026, equivalent to $4.57B in net income. Net margin is the bottom-line share of revenue that survives every expense — operating costs, interest, and income taxes — and is the figure that flows directly into earnings per share.

Is United Parcel Service (UPS) profitable?

Yes. United Parcel Service (UPS) reported $4.57B in net income for TTM through Q2 2026, with a net profit margin of 5.1%. The company earned more from its operations than it paid out in costs, interest, and income taxes, leaving positive earnings on the bottom line.

How much does United Parcel Service (UPS) spend on capital expenditures?

United Parcel Service (UPS) spent $3.41B on capital expenditures (CapEx) during TTM through Q2 2026, roughly 3.8% of total revenue. CapEx represents long-lived investment in property, equipment, data centres, and other physical infrastructure, and is subtracted from operating cash flow to arrive at free cash flow.

How much free cash flow does United Parcel Service (UPS) generate?

United Parcel Service (UPS) generated $5.49B in free cash flow during TTM through Q2 2026, a free-cash-flow margin of 6.1%. Free cash flow is the cash left after capital expenditures and represents the discretionary pool the company can use to pay dividends, repurchase shares, repay debt, or fund acquisitions without raising external capital.

What is the effective tax rate of United Parcel Service (UPS)?

United Parcel Service (UPS) had an effective tax rate of 22.1% in TTM through Q2 2026. The effective rate is the actual share of pre-tax income paid as income taxes and can differ materially from the statutory rate due to foreign earnings mix, tax credits (such as R&D), share-based compensation deductions, and one-off discrete items.

What are the main business segments of United Parcel Service (UPS)?

United Parcel Service (UPS) reports revenue across 2 reportable product segments, led by International Package at 71.7% of total revenue in TTM through Q2 2026. See the revenue-by-segment table on this page for the full breakdown and how each segment feeds into the income-statement waterfall above.

How United Parcel Service Makes Money: 2026 Visual Revenue Map

United Parcel Service (UPS) Income Statement Flow — TTM through Q2 2026

Calculated from the four most recent reported quarters, ending June 30, 2026 (reported July 28, 2026).

United Parcel Service discloses geographic revenue only in annual filings. to view the full breakdown.

United Parcel Service (UPS) Revenue by Product Segment — TTM through Q2 2026

Aggregated from the four quarterly disclosures behind this TTM. Minor differences vs the company's annual filing can occur if reported segments changed mid-year.

Revenue contribution by product segment for United Parcel Service (UPS), TTM through Q2 2026.
Segment	Revenue (USD)	% of total
International Package	$64.5B	71.7%
Supply Chain & Freight	$25.5B	28.3%
Total	$89.9B	100%

International Package$64.5B
Supply Chain & Freight$25.5B
Total$89.9B

Revenue Breakdown — TTM through Q2 2026

In TTM through Q2 2026, United Parcel Service (UPS) reports revenue across 2 reportable product segments; the largest segment was International Package at 71.7%, followed by Supply Chain & Freight (28.3%).

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