Supply chain solutions was the best performing division for UPS in the second quarter of this year due to growth in forwarding and logistics business, including healthcare.
UPS said in its second quarter results release that revenue in its supply chain solutions division increased 7.8%, “primarily due to growth in forwarding and logistics, including healthcare”.
Revenue was $2.9bn, up from $2.7bn in 2025. The division’s operating profit was $291m, up 24.4% from $234m in 2025.
Forwarding increased revenue 8.1% year-over-year, driven by higher rates in international airfreight.
The international package segment achieved revenue of $5bn for the quarter, up 12.5% from $4.5bn. UPS said: “Revenue increased 12.5%, driven by an 18.9% increase in revenue per piece.”
Operating profit for the international package segment was down from $672m to $623, a drop of 7.3%.
However, there was an improvement in the geographic mix of business as trade lanes began to rebalance, particularly in Asia, pointed out UPS.
The US domestic segment’s revenue was $14.8bn, up 6% from $14.1bn. This increase was “driven by a 9.3% increase in revenue per piece” said UPS, which had been focusing on moving away from lower-margin business, including Amazon, and focusing on more premium shipments.
In January 2025, UPS announced it had reached an agreement with Amazon to reduce Amazon shipping volumes by more than 50% by the second half of 2026. The company said this planned reduction is now complete.
But operating profit was down 98.3% for the division in the quarter, from $916 to $16m due to business transformation costs largely related to employee separation costs under its Driver Choice Program and the continued reconfiguration of its network after reducing Amazon volumes.
UPS said total US average daily volume was down 3.3% versus the second quarter of last year. Total air average daily volume was down 2.3% year over year.
Ground average daily volume was down 3.5% compared to the second quarter of 2025, with most of the decline attributable to the reduction of Amazon volumes, said UPS.
In UPS’ second quarter 2026 earnings call, Carol Tomé, chief executive said the company had completed “our Amazon glide down and network reconfiguration plan”.
Overall, UPS reported second-quarter consolidated revenues of $22.8bn. alongside consolidated operating profit of $930m.
Premium focus
Healthcare has become an increasingly important vertical for UPS. In its earnings call, Tomé said UPS generated over $3bn in healthcare revenue.
She said to further strengthen its global cold chain capabilities, UPS has added 27 temperature-controlled cross-dock facilities to its network.
“These facilities are designed specifically for fast, precise transfers of complex healthcare products between air and ground services while maintaining strict temperature control,” she said.
“We are the only carrier that provides end-to-end solutions for complex healthcare with our own assets, ensuring complete control, visibility, and best-in-class service.”
Other UPS investments include catering for its industrial manufacturing and automotive customers by expanding North American airfreight services between the US and Mexico, and the launch of a dedicated team of over 300 specialists with expertise in the supply chain needs of these customers.
Tomé said: “I want to thank all UPSers for their extraordinary work over the past 18 months as we successfully completed our Amazon glide down and related network reconfiguration initiatives as designed.”
UPS has been on a journey of change in a programme that has included it trying to right-size the business and reduce costs, as well as a Network Reconfiguration initiative, that seeks to identify further reductions in facilities, vehicles, aircraft and workforce, as well as investigates “end-to- end process redesign”.
According to UPS, “In the first six months of 2026, we achieved approximately $1.2bn of program benefits from these initiatives. We expect to achieve approximately $3bn in full year 2026 benefits from these initiatives.”
UPS’ revenue totalled $88.7bn last year.
