Revenue and Profit Trends: UPS reported Q2 2025 consolidated revenue of $21.2 billion, representing a slight decline of 0.8% year-over-year. Operating profit was $1.9 billion, with an operating margin of 8.8%. The diluted earnings per share were $1.55, indicating a challenging environment influenced by various macroeconomic factors, including consumer sentiment concerns and trade policy changes.

Declining Volume and Customer Segments: The U.S. average daily volume (ADV) decreased by 7.3%, driven primarily by a planned decline in Amazon volume and overall market softness. Notably, Ground Saver ADV declined by 23.3% year-over-year due to pricing adjustments and competitive pressures, negatively impacting overall financial performance.

Cost Reduction Efforts: UPS plans to implement approximately $3.5 billion in cost savings through various strategic initiatives, including a network reconfiguration and operational efficiency improvements. While progress has been made, the lower-than-expected attrition rates from closures are causing higher expenses temporarily.