How does United Parcel Service (UPS) make money?

United Parcel Service (UPS) generates revenue primarily from International Package, which accounted for 69.4% of total revenue in TTM through Q1 2026. The company reported $88.32B in revenue and converted 5.9% of it into net profit, equivalent to roughly $5.25B 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 17.8% in TTM through Q1 2026, equivalent to $15.71B in gross profit on $88.32B 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 8.5% in TTM through Q1 2026, equivalent to $7.47B 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 5.9% in TTM through Q1 2026, equivalent to $5.25B 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 $5.25B in net income for TTM through Q1 2026, with a net profit margin of 5.9%. 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 $3.84B on capital expenditures (CapEx) during TTM through Q1 2026, roughly 4.3% 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 $4.52B in free cash flow during TTM through Q1 2026, a free-cash-flow margin of 5.1%. 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 22.4% in TTM through Q1 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 69.4% of total revenue in TTM through Q1 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.

Where does United Parcel Service (UPS) generate most of its revenue?

UNITED STATES is the largest geographic market for United Parcel Service (UPS), accounting for 66.2% of revenue in the most recent annual filing. The complete regional split — including international markets and any Rest-of-World rollup — is shown in the revenue-by-geography table on this page.

How United Parcel Service Makes Money: 2026 Visual Revenue Map

United Parcel Service (UPS) Income Statement Flow — TTM through Q1 2026

Calculated from the four most recent reported quarters, ending March 31, 2026 (reported May 6, 2026).

United Parcel Service (UPS) Revenue by Product Segment — TTM through Q1 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) in TTM through Q1 2026.
Segment	Revenue (USD)	% of total
International Package	$61.28B	69.4%
Supply Chain & Freight	$27.04B	30.6%
Total	$88.32B	100%

International Package$61.28B
Supply Chain & Freight$27.04B
Total$88.32B

United Parcel Service (UPS) Revenue by Geography — TTM through Q1 2026

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

Revenue contribution by geographic region for United Parcel Service (UPS), TTM through Q1 2026
Region	Revenue (USD)	% of total
UNITED STATES	$43.85B	66.2%
International	$14.65B	22.1%
Supply Chain & Freight	$7.71B	11.6%
Total	$66.21B	100%

UNITED STATES
International
Supply Chain & Freight
Total

Revenue Breakdown — TTM through Q1 2026

In TTM through Q1 2026, United Parcel Service (UPS) reports revenue across 2 operating segments; the largest segment was International Package at 69.4%, followed by Supply Chain & Freight (30.6%). Separately, by end-market geography, UNITED STATES accounted for 66.2% of revenue, followed by International (22.1%) and Supply Chain & Freight (11.6%).

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