Home » UPS expects cash flow of $17-18B in 2026

UPS expects cash flow of $17-18B in 2026

Plans to better execute its Customer First, People Led, Innovation Driven strategy
UPS says it plans to lower its cost to serve through its Network of the Future initiative plan that will optimize and further automate its core integrated network.

LOUISVILLE — Under a better and bolder approach, UPS will continue its Customer First, People Led, Innovation Driven strategy, and is positioning itself to become the premium small package provider and logistics partner in the world, it said Tuesday in Louisville.

UPS hosted its investor and analyst conference Tuesday at its Worldport air hub in Louisville. The company shared details of its strategic growth and productivity initiatives and its three-year financial targets.

UPS Worldport is a 5.2 million-s.f. global facility at Louisville Muhammad Ali International Airport where more than 12,000 UPSers process more than 2 million packages a day. UPS has investing more than $1.2 billion and creating more than 6,200 new jobs in Kentucky in the last five years.

During the conference, UPS highlighted several strategic initiatives that will enable market share capture and expand its addressable market to drive incremental growth. In addition, the company provided details about how it will lower its cost to serve through its Network of the Future initiative, a plan that will optimize and further automate its core integrated network.

“We executed the strategy we set forth nearly three years ago by changing almost every aspect of our business. After coming off a difficult market in 2023, the small package industry is poised to return to growth in 2024 and beyond,” said UPS CEO Carol Tomé. “Over the next three years, we plan to make bold moves to create a growth flywheel in premium markets, while at the same time drive higher productivity and efficiency.

“The growth and productivity initiatives we are executing will result in higher revenue, expanded operating margins and increased free cash flow to deliver long-term value to our shareowners,” Tomé said


2026 Financial Targets

The company provides certain guidance on an adjusted (non-GAAP) basis because it is not possible to predict or provide a reconciliation reflecting the impact of future unanticipated events, which would be included in reported (GAAP) results and could be material.

The company presented its 2026 financial targets as follows:

  • Consolidated revenue ranging from approximately $108 billion to approximately $114 billion.
  • Consolidated adjusted* operating margin above 13%.
  • U.S. Domestic Package segment adjusted* operating margin of at least 12%.
  • International Package segment adjusted* operating margin between 18% and 19%.
  • Supply Chain Solutions adjusted* operating margin of around 12%.
  • Free cash flow* of between $17 billion and $18 billion.
  • Capital spending from 2024–2026 of approximately 5.5% of total revenue.

*Represents a non-GAAP financial measure. See the appendix to this release for a discussion of non-GAAP financial measures.

UPS is one of the world’s largest companies, with 2023 revenue of $91.0 billion, and provides a broad range of integrated logistics solutions for customers in more than 200 countries and territories. Focused on its purpose statement, “Moving our world forward by delivering what matters,” the company’s approximately 500,000 employees embrace a strategy that is simply stated and powerfully executed: Customer First. People Led. Innovation Driven.

More information can be found at ups.com, about.ups.com and investors.ups.com/.

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