United Parcel Service’s (UPS) 2026 revenue outlook of $108 billion to $114 billion and operating margin above 13% is higher than BofA Securities’ forecast of $105 billion and 12%, the firm said in a note Wednesday.
The investment firm said it anticipates its outlook to be subject to risk given that United Parcel missed its multi-year targets at its most recent analyst meetings.
The company expects mid-single-digit revenue growth and revenue per package growth of 2.5%, BofA Securities added.
“This appears to be an aggressive return-to-growth outlook, despite sustained weakness in the small package market,” BofA said.
BofA maintained its neutral rating on the company’s stock and cut the price objective to $158 from $164.