Goldman Sachs Raises Price Target for United Parcel Service (NYSE: UPS) Amid Q1 2026 Earnings

• Goldman Sachs increased its price target for United Parcel Service (NYSE: UPS) to $127, suggesting a potential upside of 22.21% from its recent trading price.
• Despite a year-over-year decline, United Parcel Service reported strong Q1 2026 results, with revenues of $21.20 billion and earnings per share of $1.07, both exceeding analyst estimates.
• Management remains optimistic, reaffirming full-year 2026 revenue guidance of $89.70 billion and anticipating a return to growth in the second quarter, supporting the positive analyst outlook.

An analyst from Goldman Sachs recently increased the price target for United Parcel Service to $127. United Parcel Service (NYSE: UPS) is a global leader in package delivery and logistics, competing with companies like FedEx (NYSE: FDX). At its recent price of $103.92, this new target suggests a potential increase of about 22.21% for United Parcel Service shares.

This positive outlook follows the company's first-quarter 2026 results. United Parcel Service reported revenues of $21.20 billion, which was higher than the estimated $21 billion. Its earnings per share of $1.07 also beat the Zacks Consensus Estimate of $1.04, showing a solid performance against market expectations, as highlighted by Zacks.

However, these figures show a decline compared to the previous year. Revenue decreased by 1.6% and earnings per share fell by 28.2% year-over-year. The company states this is due to lower shipping volume and a slowdown in its Mail Innovations business, which impacted overall results for the quarter.

Investor reaction to the mixed results was cautious. Shares of United Parcel Service fell 3.6% after the announcement, as highlighted by Proactive Investors. This was mainly due to ongoing weakness in its U.S. package business, which overshadowed the better-than-expected revenue and earnings figures for the quarter.

Looking forward, United Parcel Service management remains optimistic. The company reaffirmed its full-year 2026 revenue guidance of $89.70 billion. CEO Carol Tomé also anticipates a return to growth for both revenue and operating profit starting in the second quarter, which supports the analyst's higher price target.