UPS CEO Says the Amazon Glide Down Is 'Behind Us'

Watch on YouTube ↗  |  July 28, 2026 at 20:23  |  9:57  |  Bloomberg Markets
Speakers
Carol Tomé — CEO, UPS

Summary

UPS CEO Carol Tomé discusses the company's completed transformation away from low-margin Amazon volume, focusing on higher-margin healthcare logistics and SMB segments. She projects continued margin expansion, volume growth excluding Amazon, and cash flow sufficient to cover the dividend. International trade lanes are recovering, but shares fell despite the positive outlook.

  • UPS beat Q2 estimates but shares fell 6% on volume and margin guidance.
  • The Amazon glide-down is complete; Amazon now represents ~9% of revenue.
  • Domestic margins improved 400bps sequentially and are expected to expand further.
  • Healthcare logistics is a key growth driver, growing faster than the 6% market rate.
  • Automation now handles 68.5% of US volume, reducing cost per piece by 28%.
  • CEO affirms dividend safety with cash flow projected to exceed obligations.
  • China-US trade lane grew 22% in Q2, signaling international recovery.
Ideas
Carol Tomé CEO, UPS 0:59
UPS turnaround complete; higher margin growth ahead.
UPS has completed its strategic glide-down of low-margin Amazon volume and is now focused on higher-margin segments such as complex healthcare logistics, SMB, and B2B. Domestic margins are expanding sequentially and year-over-year, supported by automation that lowers cost per piece by 28%. Volume excluding Amazon is growing, and international trade lanes like China-US are recovering. The company expects continued profit and earnings growth into 2027, and cash flow is strengthening to comfortably cover the dividend.
UPS HIGH
Up Next
25:02
Hanwha Aerospace's Sprint Changes the K-Defense Game! Export Aimed from Southeast Asia to Europe / Hanwha Ocean's Counterattack After Failing Canada Submarine Order is 'This' | Ahn Seung-beom CEO
815 Money Talk (815머니톡) · Jul 28
18:59
Jim Bianco: The Fed Has Changed Forever
Wealthion · Jul 28
8:59
Barnes & Noble CEO on Strategy, Book Sales and Possible IPO
Bloomberg Markets · Jul 28
0:49
Many Feared Trapped in Mall After Japan Quake
Bloomberg Markets · Jul 28
5:02
JetBlue CEO on Q2 results: Industry is starting to gain pricing power
CNBC · Jul 28

This Bloomberg Markets video, published July 28, 2026, features Carol Tomé discussing UPS. 1 trade idea extracted by AI with direction and confidence scoring.

Speakers: Carol Tomé  · Tickers: UPS