UPS (UPS)
Runs integrated ground, air, and supply-chain logistics across domestic and international markets.
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UPS is a vast parcel network whose core remains everyday U.S. ground delivery. It is deliberately shedding Amazon volume while building international delivery, healthcare handling and easier access for small businesses. The transition depends on shrinking facilities and labor fast enough to match the parcels it gives up.
Item facts: FY2025 · year ended Dec 31, 2025, from filings, earnings calls and company pages.
Judgment weights, not filed revenue
The band summarizes business focus and direction. ~ marks estimates.
9 in detail · 15 more below
Ground
Ground brought in $44.2 billion in FY2025 and remains UPS’s load-bearing service. Watch whether facility and job cuts keep the cost of each delivery falling as package counts shrink.
Competes with Ground and Home Delivery (FedEx) · Ground Advantage (USPS)
In plain English
Most UPS packages take this road. Ground carries boxes between U.S. businesses and homes in one to five business days, using local vans, sorting buildings and long-distance trucks rather than promising an overnight flight.
The customer pays according to distance, size, handling and speed. UPS makes the route work when many stops sit close together: one driver and one truck can deliver more boxes without much extra time. As volume falls, the danger is paying for buildings, vehicles and workers that no longer have enough packages to fill the day.
Amazon Accelerated Glide Down
Amazon supplied 10.6% of FY2025 revenue, the only customer above 10%. The planned cut is now complete; watch whether UPS removed costs as fast as those parcels left.
Competes with Shipping and Logistics (Amazon) · Ground Advantage (USPS) · Ground (FedEx)
In plain English
One customer once poured an unusually large stream of boxes into UPS’s U.S. network: Amazon. The relationship still exists, but an agreed wind-down moved more than half of that stream away by June 2026 while UPS kept selected shipments.
Think of closing several checkout lanes after the biggest shopper leaves. Revenue disappears immediately; savings arrive only if the matching staff, buildings and transport also go. UPS earns on every retained Amazon shipment, but the economic test is whether the smaller relationship leaves the wider network more efficient.
Deferred
Sales fell 6.5% in FY2025. These slower air services keep price-conscious packages inside UPS, but only work if they can use planned planes, trucks and sorting runs efficiently.
Competes with 2Day and Express Saver (FedEx) · Priority Mail (USPS)
In plain English
Not every package needs tomorrow. UPS 2nd Day Air and UPS 3 Day Select give U.S. shippers a middle choice: faster than ordinary ground service, cheaper than overnight, and flexible enough to use a mix of planes and trucks.
Customers pay for a promised second- or third-day arrival. UPS makes money when these parcels fill spare space in routes and sorting runs that were already planned. If it has to add expensive air capacity for a lower-priced shipment, the middle option loses its purpose.
Digital Access Program
Sales flowing through outside marketplaces and shipping software grew 25% in FY2025. Watch whether easy setup and useful tools keep small merchants choosing UPS when another carrier is one click away.
Competes with Compatible (FedEx) · eCommerce integrations (DHL Group)
In plain English
A small online seller may meet UPS without ever visiting its website. The Digital Access Program puts UPS prices and labels inside the marketplaces and shipping tools that merchants already use.
It works like a checkout button built into someone else’s counter: the seller chooses UPS while packing an order, the outside software passes the shipment into UPS, and UPS collects the delivery charge. Millions of small businesses had joined. Growth depends on easy setup, reliable tools and prices attractive enough to keep sellers from switching carriers.
International Package
Sales rose 3.4% in FY2025 across local and cross-border delivery. Watch trade rules, tariffs, currencies and available aircraft space: each can change package flow or what customers will pay.
Competes with International First, Priority and Economy (FedEx) · Express Worldwide and 9:00/12:00 (DHL Group)
In plain English
A package crossing a border needs more than a ride. UPS offers fast, standard and economy delivery within countries and between them, then moves the box through airports and government checks before the local doorstep trip.
Exporters and importers pay more when timing matters or paperwork is hard. UPS earns from each shipment and from related cargo services, while a dense network spreads aircraft and sorting costs across many customers. Trade rules, tariffs, currencies and available plane space can quickly change both demand and what customers will pay.
UPS Healthcare
Two consecutive FY2026 quarters each topped $3 billion in healthcare sales. The next test is joining newly acquired cold-storage and time-critical specialists into one dependable network.
Competes with Healthcare, SenseAware and Surround (FedEx) · Health Logistics (DHL Group) · Systems (Cryoport)
In plain English
Medicine cannot be treated like an ordinary box. UPS Healthcare stores and moves drugs, lab materials and medical devices while keeping them at the right temperature and recording who handled them along the way.
A drugmaker pays UPS for the warehouse space, the trip and the extra controls that prevent an expensive shipment from spoiling. It resembles a refrigerated relay race: each handoff must protect the package and preserve its history. Acquired specialists extend that chain, so growth now depends on joining their buildings and routes into one dependable service.
Logistics
Revenue returned to 4.3% growth in FY2026 Q2 after a weak year. Filling warehouses matters: rent, equipment and workers cost money whether the shelves are busy or quiet.
Competes with Supply Chain contract logistics (DHL Group) · Direct (GXO Logistics)
In plain English
The work continues after goods reach a warehouse. UPS Logistics stores inventory, picks and packs orders, fills shipments and manages transport for retailers, manufacturers and healthcare companies.
Clients pay UPS to run that back room instead of building it themselves. A busy building spreads rent, equipment and worker costs across more orders; an underfilled one becomes expensive quickly. Accurate inventory and timely packing keep contracts, while automation can lower the hands needed for each order. The watchpoint is filling capacity after the Mail Innovations decline.
Forwarding
Sales dropped 38.3% in FY2025, a comparison made harsher by an earlier business sale; the continuing air-and-ocean operation also softened. Watch trade flows and the prices UPS pays carriers.
Competes with Global Forwarding (DHL Group) · Sea-Air (Kuehne+Nagel) · Air & Sea (DSV)
In plain English
Sometimes UPS sells the itinerary rather than the vehicle. Forwarding finds space on airlines, ships and trucks, arranges border paperwork, and stitches the legs together for manufacturers and retailers moving larger loads.
The customer pays UPS for one coordinated journey. UPS then buys space from the actual carriers and keeps the difference after costs, much like a travel agent assembling several tickets. Revenue can swing when carrier prices change even if the amount moved does not, so trade demand and purchased capacity matter more than owning fleets.
Next Day Air
Revenue rose 12.4% in FY2026 Q2 despite slightly fewer packages. Customers paid more for urgent traffic, but the overnight aircraft and sorting network must run before demand is known.
Competes with First, Priority and Standard Overnight (FedEx) · Priority Mail Express (USPS)
In plain English
Midnight is where this service earns its premium. Next Day Air takes urgent U.S. letters and packages through an overnight pickup, flight, sort and delivery chain so they arrive the following day.
A business, healthcare shipper or postal customer pays extra because waiting costs more than shipping. UPS must have aircraft, airport slots, fuel and sorting crews ready before the parcel appears. That makes the promise valuable but unforgiving: fewer packages do not automatically remove the cost of operating the overnight network.
GroundGround brought in $44.2 billion in FY2025 and remains UPS’s load-bearing service. Watch whether facility and job cuts keep the cost of each delivery falling as package counts shrink.Ground brought in $44.2 billion in FY2025 and remains UPS’s load-bearing service. Watch whether facility and job cuts keep the cost of each delivery falling as package counts shrink.
In plain English
Most UPS packages take this road. Ground carries boxes between U.S. businesses and homes in one to five business days, using local vans, sorting buildings and long-distance trucks rather than promising an overnight flight.
The customer pays according to distance, size, handling and speed. UPS makes the route work when many stops sit close together: one driver and one truck can deliver more boxes without much extra time. As volume falls, the danger is paying for buildings, vehicles and workers that no longer have enough packages to fill the day.
Competes with Ground and Home Delivery (FedEx) · Ground Advantage (USPS)
Amazon Accelerated Glide DownAmazon supplied 10.6% of FY2025 revenue, the only customer above 10%. The planned cut is now complete; watch whether UPS removed costs as fast as those parcels left.Amazon supplied 10.6% of FY2025 revenue, the only customer above 10%. The planned cut is now complete; watch whether UPS removed costs as fast as those parcels left.
In plain English
One customer once poured an unusually large stream of boxes into UPS’s U.S. network: Amazon. The relationship still exists, but an agreed wind-down moved more than half of that stream away by June 2026 while UPS kept selected shipments.
Think of closing several checkout lanes after the biggest shopper leaves. Revenue disappears immediately; savings arrive only if the matching staff, buildings and transport also go. UPS earns on every retained Amazon shipment, but the economic test is whether the smaller relationship leaves the wider network more efficient.
Competes with Shipping and Logistics (Amazon) · Ground Advantage (USPS) · Ground (FedEx)
DeferredSales fell 6.5% in FY2025. These slower air services keep price-conscious packages inside UPS, but only work if they can use planned planes, trucks and sorting runs efficiently.Sales fell 6.5% in FY2025. These slower air services keep price-conscious packages inside UPS, but only work if they can use planned planes, trucks and sorting runs efficiently.
In plain English
Not every package needs tomorrow. UPS 2nd Day Air and UPS 3 Day Select give U.S. shippers a middle choice: faster than ordinary ground service, cheaper than overnight, and flexible enough to use a mix of planes and trucks.
Customers pay for a promised second- or third-day arrival. UPS makes money when these parcels fill spare space in routes and sorting runs that were already planned. If it has to add expensive air capacity for a lower-priced shipment, the middle option loses its purpose.
Competes with 2Day and Express Saver (FedEx) · Priority Mail (USPS)
Digital Access ProgramSales flowing through outside marketplaces and shipping software grew 25% in FY2025. Watch whether easy setup and useful tools keep small merchants choosing UPS when another carrier is one click away.Sales flowing through outside marketplaces and shipping software grew 25% in FY2025. Watch whether easy setup and useful tools keep small merchants choosing UPS when another carrier is one click away.
In plain English
A small online seller may meet UPS without ever visiting its website. The Digital Access Program puts UPS prices and labels inside the marketplaces and shipping tools that merchants already use.
It works like a checkout button built into someone else’s counter: the seller chooses UPS while packing an order, the outside software passes the shipment into UPS, and UPS collects the delivery charge. Millions of small businesses had joined. Growth depends on easy setup, reliable tools and prices attractive enough to keep sellers from switching carriers.
Competes with Compatible (FedEx) · eCommerce integrations (DHL Group)
International PackageSales rose 3.4% in FY2025 across local and cross-border delivery. Watch trade rules, tariffs, currencies and available aircraft space: each can change package flow or what customers will pay.Sales rose 3.4% in FY2025 across local and cross-border delivery. Watch trade rules, tariffs, currencies and available aircraft space: each can change package flow or what customers will pay.
In plain English
A package crossing a border needs more than a ride. UPS offers fast, standard and economy delivery within countries and between them, then moves the box through airports and government checks before the local doorstep trip.
Exporters and importers pay more when timing matters or paperwork is hard. UPS earns from each shipment and from related cargo services, while a dense network spreads aircraft and sorting costs across many customers. Trade rules, tariffs, currencies and available plane space can quickly change both demand and what customers will pay.
Competes with International First, Priority and Economy (FedEx) · Express Worldwide and 9:00/12:00 (DHL Group)
UPS HealthcareTwo consecutive FY2026 quarters each topped $3 billion in healthcare sales. The next test is joining newly acquired cold-storage and time-critical specialists into one dependable network.Two consecutive FY2026 quarters each topped $3 billion in healthcare sales. The next test is joining newly acquired cold-storage and time-critical specialists into one dependable network.
In plain English
Medicine cannot be treated like an ordinary box. UPS Healthcare stores and moves drugs, lab materials and medical devices while keeping them at the right temperature and recording who handled them along the way.
A drugmaker pays UPS for the warehouse space, the trip and the extra controls that prevent an expensive shipment from spoiling. It resembles a refrigerated relay race: each handoff must protect the package and preserve its history. Acquired specialists extend that chain, so growth now depends on joining their buildings and routes into one dependable service.
Competes with Healthcare, SenseAware and Surround (FedEx) · Health Logistics (DHL Group) · Systems (Cryoport)
LogisticsRevenue returned to 4.3% growth in FY2026 Q2 after a weak year. Filling warehouses matters: rent, equipment and workers cost money whether the shelves are busy or quiet.Revenue returned to 4.3% growth in FY2026 Q2 after a weak year. Filling warehouses matters: rent, equipment and workers cost money whether the shelves are busy or quiet.
In plain English
The work continues after goods reach a warehouse. UPS Logistics stores inventory, picks and packs orders, fills shipments and manages transport for retailers, manufacturers and healthcare companies.
Clients pay UPS to run that back room instead of building it themselves. A busy building spreads rent, equipment and worker costs across more orders; an underfilled one becomes expensive quickly. Accurate inventory and timely packing keep contracts, while automation can lower the hands needed for each order. The watchpoint is filling capacity after the Mail Innovations decline.
Competes with Supply Chain contract logistics (DHL Group) · Direct (GXO Logistics)
ForwardingSales dropped 38.3% in FY2025, a comparison made harsher by an earlier business sale; the continuing air-and-ocean operation also softened. Watch trade flows and the prices UPS pays carriers.Sales dropped 38.3% in FY2025, a comparison made harsher by an earlier business sale; the continuing air-and-ocean operation also softened. Watch trade flows and the prices UPS pays carriers.
In plain English
Sometimes UPS sells the itinerary rather than the vehicle. Forwarding finds space on airlines, ships and trucks, arranges border paperwork, and stitches the legs together for manufacturers and retailers moving larger loads.
The customer pays UPS for one coordinated journey. UPS then buys space from the actual carriers and keeps the difference after costs, much like a travel agent assembling several tickets. Revenue can swing when carrier prices change even if the amount moved does not, so trade demand and purchased capacity matter more than owning fleets.
Competes with Global Forwarding (DHL Group) · Sea-Air (Kuehne+Nagel) · Air & Sea (DSV)
Next Day AirRevenue rose 12.4% in FY2026 Q2 despite slightly fewer packages. Customers paid more for urgent traffic, but the overnight aircraft and sorting network must run before demand is known.Revenue rose 12.4% in FY2026 Q2 despite slightly fewer packages. Customers paid more for urgent traffic, but the overnight aircraft and sorting network must run before demand is known.
In plain English
Midnight is where this service earns its premium. Next Day Air takes urgent U.S. letters and packages through an overnight pickup, flight, sort and delivery chain so they arrive the following day.
A business, healthcare shipper or postal customer pays extra because waiting costs more than shipping. UPS must have aircraft, airport slots, fuel and sorting crews ready before the parcel appears. That makes the promise valuable but unforgiving: fewer packages do not automatically remove the cost of operating the overnight network.
Competes with First, Priority and Standard Overnight (FedEx) · Priority Mail Express (USPS)
Named in filings, launches and programs
- Cargo & OtherProduct lineU.S. air cargo and related services brought in $1.238 billion in FY2025; international cargo already sits inside International Package.
- Ground SaverServiceA slower service for lightweight home deliveries whose last doorstep leg moved in-house, then was scheduled to shift back to USPS during 2026.
- USPS Air Cargo ProgramCustomer programUPS moves most USPS U.S. air cargo under an agreement that began in 2024; payment terms remain private.
- RoadieBrandCrowdsourced same-day delivery for ordinary and oversized items, included with UPS’s smaller supply-chain businesses.
- Happy ReturnsBrandBox-free, label-free online-shopping returns gathered through retail counters, including The UPS Store.
- UPS CapitalBrandInsurance and shipping-risk services that help customers protect goods moving through delivery networks.
- Mail InnovationsServiceEconomy mail and lightweight parcels grouped together inside Logistics; its FY2025 revenue fell by $904 million.
- The UPS StoreEcosystemA franchised network of roughly 5,500 U.S. counters for shipping, mailboxes and returns.
- UPS PremierServiceHealthcare delivery with package sensors that help UPS see and prioritize sensitive shipments across its network.
- Frigo-TransBrandEuropean temperature-controlled healthcare warehousing acquired in January 2025.
- Biotech & Pharma LogisticsBrandFrigo-Trans’s time-critical pharmaceutical forwarding operation, acquired alongside the warehousing business.
- Andlauer Healthcare GroupBrandSpecialized Canadian and U.S. healthcare logistics added in November 2025.
- MNX Global LogisticsBrandTime-critical healthcare delivery capability folded into UPS Healthcare.
- Bomi GroupBrandA healthcare-logistics network that extends UPS across Europe and Latin America.
- Smart Package Smart Facility / RFIDEcosystem · RampingPackage identification and automated sorting intended to reduce manual handling and boxes sent the wrong way.
Cargo & OtherProduct line
U.S. air cargo and related services brought in $1.238 billion in FY2025; international cargo already sits inside International Package.
Ground SaverService
A slower service for lightweight home deliveries whose last doorstep leg moved in-house, then was scheduled to shift back to USPS during 2026.
USPS Air Cargo ProgramCustomer program
UPS moves most USPS U.S. air cargo under an agreement that began in 2024; payment terms remain private.
RoadieBrand
Crowdsourced same-day delivery for ordinary and oversized items, included with UPS’s smaller supply-chain businesses.
Happy ReturnsBrand
Box-free, label-free online-shopping returns gathered through retail counters, including The UPS Store.
UPS CapitalBrand
Insurance and shipping-risk services that help customers protect goods moving through delivery networks.
Mail InnovationsService
Economy mail and lightweight parcels grouped together inside Logistics; its FY2025 revenue fell by $904 million.
The UPS StoreEcosystem
A franchised network of roughly 5,500 U.S. counters for shipping, mailboxes and returns.
UPS PremierService
Healthcare delivery with package sensors that help UPS see and prioritize sensitive shipments across its network.
Frigo-TransBrand
European temperature-controlled healthcare warehousing acquired in January 2025.
Biotech & Pharma LogisticsBrand
Frigo-Trans’s time-critical pharmaceutical forwarding operation, acquired alongside the warehousing business.
Andlauer Healthcare GroupBrand
Specialized Canadian and U.S. healthcare logistics added in November 2025.
MNX Global LogisticsBrand
Time-critical healthcare delivery capability folded into UPS Healthcare.
Bomi GroupBrand
A healthcare-logistics network that extends UPS across Europe and Latin America.
Smart Package Smart Facility / RFIDEcosystem · Ramping
Package identification and automated sorting intended to reduce manual handling and boxes sent the wrong way.