United Parcel Service, Inc. (UPS) Operating Margin: 8.87%
Is United Parcel Service, Inc.’s operating margin high or low?
United Parcel Service, Inc.'s operating margin of 8.87% is 17% below its 5-year average of 10.75%, near the low end of its 5-year range (8.87%–13.48%).
The operating margin for United Parcel Service, Inc. (UPS) is 8.87% as of Tuesday, June 9, 2026. It is below its 12-month average by 3.74% (9.21%).
UPS Operating Margin Chart
UPS Average Operating Margin Chart
UPS Current vs Average Operating Margin Chart
UPS Operating Margin Metrics
OPERATING MARGIN
8.87%
OPERATING MARGIN AVG TTM
9.21%
OPERATING MARGIN AVG 3Y
10.43%
OPERATING MARGIN AVG 5Y
10.75%
OPERATING MARGIN AVG 10Y
10.66%
OPERATING MARGIN AVG 15Y
10.36%
OPERATING MARGIN AVG 20Y
10.30%
CURRENT VS TTM AVG
-3.74%
CURRENT VS 3Y AVG
-14.96%
CURRENT VS 5Y AVG
-17.46%
CURRENT VS 10Y AVG
-16.80%
CURRENT VS 15Y AVG
-14.41%
CURRENT VS 20Y AVG
-13.85%
UPS Competitors' Operating Margin
| NAME | MARKET CAP | OPERATING MARGIN | TTM | 3Y | 5Y |
|---|---|---|---|---|---|
| United Parcel Service, Inc. (UPS) | — | 8.87% | 9.21% | 10.43% | 10.75% |
| Cummins Inc. (CMI) | $92.35B | 11.48% | 11.24% | 9.52% | 10.13% |
| Automatic Data Processing, Inc. (ADP) | $92.41B | 26.32% | 26.03% | 25.03% | 23.97% |
| 3M Company (MMM) | $81.55B | 18.29% | 19.18% | 16.68% | 18.27% |
| Emerson Electric Co. (EMR) | $79.77B | 19.60% | 17.42% | 17.53% | 16.97% |
| Illinois Tool Works Inc. (ITW) | $73.81B | 26.28% | 26.55% | 25.49% | 24.82% |
| Parker-Hannifin Corporation (PH) | $114.18B | 20.45% | 20.02% | 18.67% | 17.65% |
| PACCAR Inc (PCAR) | $62.99B | 10.41% | 12.47% | 13.66% | 10.74% |
| Rocket Lab USA, Inc. (RKLB) | $62.65B | -38.03% | -40.77% | -54.59% | -89.77% |
| Lockheed Martin Corporation (LMT) | $122.23B | 10.30% | 10.09% | 11.35% | 12.04% |
Operating Efficiency
Gross Margin
18.1%
Operating Margin
8.9%
United Parcel Service, Inc. Operating Margin Formula & Definition
Operating Margin = Operating Income / Revenue
Operating margin is the percentage of revenue remaining after operating expenses, reflecting operating efficiency.
Expanded definitions: Investopedia, Wikipedia, Corporate Finance Institute
United Parcel Service, Inc. Operating Margin FAQ
- What is the operating margin for United Parcel Service, Inc. (UPS)?
- The operating margin for UPS stock is 8.87%.
- Is United Parcel Service, Inc.'s operating margin high or low?
- United Parcel Service, Inc.'s operating margin of 8.87% is 17% below its 5-year average of 10.75%, near the low end of its 5-year range (8.87%–13.48%).
- What is the TTM average operating margin for United Parcel Service, Inc. (UPS)?
- The TTM average operating margin for UPS stock is 9.21%.
- What is the 3Y average operating margin for United Parcel Service, Inc. (UPS)?
- The 3Y average operating margin for UPS stock is 10.43%.
- What is the 5Y average operating margin for United Parcel Service, Inc. (UPS)?
- The 5Y average operating margin for UPS stock is 10.75%.
- What is the 10Y average operating margin for United Parcel Service, Inc. (UPS)?
- The 10Y average operating margin for UPS stock is 10.66%.
- What is the 15Y average operating margin for United Parcel Service, Inc. (UPS)?
- The 15Y average operating margin for UPS stock is 10.36%.
- What is the 20Y average operating margin for United Parcel Service, Inc. (UPS)?
- The 20Y average operating margin for UPS stock is 10.30%.
United Parcel Service, Inc. Operating Margin History
| DATE | OPERATING MARGIN |
|---|---|
| 2025-12-31 | 8.87% |
| 2024-12-31 | 9.56% |
| 2023-12-31 | 10.33% |
| 2022-12-31 | 12.96% |
| 2021-12-31 | 13.48% |
| 2020-12-31 | 9.28% |
| 2019-12-31 | 10.66% |
| 2018-12-31 | 9.84% |
| 2017-12-31 | 11.26% |
| 2016-12-31 | 8.38% |
| 2015-12-31 | 12.65% |
| 2014-12-31 | 10.42% |
| 2013-12-31 | 12.66% |
| 2012-12-31 | 2.31% |
| 2011-12-31 | 11.54% |
| 2010-12-31 | 11.61% |
| 2009-12-31 | 8.56% |
| 2008-12-31 | 11.56% |
| 2007-12-31 | 1.76% |
| 2006-12-31 | 13.98% |
| 2005-12-31 | 14.54% |
| 2004-12-31 | 14.06% |
| 2003-12-31 | 13.27% |
| 2002-12-31 | 13.10% |
| 2001-12-31 | 12.93% |
| 2000-12-31 | 15.16% |
| 1999-12-31 | 14.74% |
| 1998-12-31 | 12.47% |
Related Metrics
About United Parcel Service, Inc.
United Parcel Service, Inc. (UPS) stands as a leading global entity in shipping and logistics, delivering an extensive array of services such as parcel and document conveyance, transportation of goods, and supply chain management. The corporation structures its widespread operations into two principal divisions: U.S. Domestic Package and International Package. Within the United States, its Domestic Package unit specializes in time-guaranteed delivery for a range of items, including correspondence, critical paperwork, smaller parcels, and palletized cargo, utilizing both air and surface transportation methods. Conversely, the International Package division ensures reliable, precise-time international shipping services across extensive geographical areas, encompassing Europe, the Asia Pacific region, Canada, Latin America, the Indian sub-continent, the Middle East, and Africa. This segment notably features guaranteed express options for urgent consignments. Beyond core package services, UPS extends its reach to roughly 200 nations and jurisdictions, offering international air and sea cargo forwarding, expert customs clearance, distribution and after-sales support, alongside postal and advisory solutions. Furthermore, its diversified portfolio includes truckload transport brokering; tailored supply chain management for the healthcare and life sciences sectors; sophisticated shipping, tracking, and invoicing technologies; and a suite of financial and insurance offerings. Supporting these extensive operations is an impressive operational fleet of around 121,000 vehicles, comprising package cars, vans, tractors, and motorcycles. Additionally, it possesses 59,000 specialized containers integral for cargo transport aboard its aircraft. Established in 1907, United Parcel Service, Inc. has its corporate headquarters situated in Atlanta, Georgia.
- Sector
- Industrials
- Industry
- Integrated Freight & Logistics
- CEO
- Carol Tome