UPS Stock Slumps on Disappointing Earnings and Uncertain Market Conditions
UPS shares plummeted 16.8% this week following a lackluster second-quarter earnings report. Revenue aligned with April guidance, but profit margins fell short, dragging earnings below estimates. The miss triggered a wave of price target cuts from analysts.
CEO Carol Tomé declined to update full-year guidance, citing market uncertainty so vast it could "drive one of our 18-wheelers through." Tariff volatility is squeezing profitable segments like China-U.S. trade lanes and small business clients struggling to adapt.
While Tomé reaffirmed the dividend commitment, financial pressures loom. UPS has already spent $1 billion on 2025 buybacks and faces $5.5 billion in dividend obligations against $3.7 billion in trailing free cash flow.