UPS (NYSE:UPS) forecasted better-than-expected total revenues for FY26 ahead of its investor and analyst conference later today. The logistics giant expects revenues in the range of $108 billion to $114 billion in FY26, above consensus estimates of $102.1 billion.
The company expects to report an adjusted operating margin above 13% with free cash flow likely to be between $17 billion and $18 billion in 2026. UPS has projected capex to be 5.5% of its total revenues from 2024 to 2026.
Earlier this year, the parcel delivery giant’s Q4 earnings and a bleak outlook left investors disappointed. In FY24, UPS expects revenue to range from $92 billion to $94.5 billion with an adjusted operating margin between 10% and 10.6%. This estimate was below the Street’s expectations of an 11.3% operating profit margin and sales of $95.7 billion.
Moreover, the company announced that it would layoff 12,000 workers to save around $1 billion annually.
Is UPS a Good Stock to Buy Now?
Analysts remain cautiously optimistic about UPS stock with a Moderate Buy consensus rating based on nine Buys and Holds each and one Sell. UPS stock has dropped by more than 10% over the past year and the average UPS price target of $161.78 implies an upside potential of 3.33% at current levels.
