United Parcel Service vs. FedEx: What Their Revenue Trends Tell Investors
Key Points
FedEx currently looks stronger on revenue, showing consistent top-line expansion compared to the more volatile performance seen from United Parcel Service.
Over the last eight quarters, United Parcel Service experienced distinct quarter-over-quarter swings, while FedEx maintained a much steadier upward trajectory during the same timeframe.
Investors should watch whether the revenue gap between the two companies continues to widen or if it stabilizes in upcoming quarters.
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United Parcel Service: Navigating Revenue Fluctuations
United Parcel Service (NYSE:UPS) primarily generates revenue by offering time-definite package delivery, international logistics, and specialized supply chain services to clients worldwide.
In the first half of 2026, it announced plans to close additional distribution centers while reporting a 4% net income margin for the quarter ended March 31, 2026.
FedEx: Building Steady Revenue Growth
FedEx (NYSE:FDX) primarily earns revenue by providing rapid package shipping, heavy cargo transport, and integrated supply chain management services across international borders.
It finalized the spin-off of its freight business into an independent public company in June 2026, and reported a 6% net income margin for the quarter ended May 31, 2026.
Why Revenue Matters for Retail Investors
Revenue allows investors to see how much money a business is bringing in before any expenses are deducted. Tracking this figure helps investors understand the total scale and top-line growth trajectory of a business.
Quarterly Revenue for United Parcel Service and FedEx
| Quarter (Period End) | United Parcel Service Revenue | FedEx Revenue |
|---|---|---|
| Q3 2024 | $22.2 billion (period ended Sept. 2024) | $21.6 billion (period ended Aug. 2024) |
| Q4 2024 | $25.2 billion (period ended Dec. 2024) | $22.0 billion (period ended Nov. 2024) |
| Q1 2025 | $21.5 billion (period ended March 2025) | $22.2 billion (period ended Feb. 2025) |
| Q2 2025 | $21.2 billion (period ended June 2025) | $22.2 billion (period ended May 2025) |
| Q3 2025 | $21.4 billion (period ended Sept. 2025) | $22.2 billion (period ended Aug. 2025) |
| Q4 2025 | $24.5 billion (period ended Dec. 2025) | $23.5 billion (period ended Nov. 2025) |
| Q1 2026 | $21.2 billion (period ended March 2026) | $24.0 billion (period ended Feb. 2026) |
| Q2 2026 | Not yet reported | $25.0 billion (period ended May 2026) |
Data source: Company filings. Data as of July 7, 2026.
Foolish Take
Examining the revenue trends for UPS and FedEx reveal different stories about their businesses. UPS experiences a spike in the fourth quarter because one of its biggest customers historically has been Amazon, and the holiday season produces more sales for the e-commerce giant.
That has changed with UPS slashing its business with Amazon because, while the partnership contributes a lot of revenue, the margins are slim. UPS has intentionally shed this low-margin volume to improve its operating profit margins, leading to bumpy quarterly revenue and year-over-year declines. UPS is also predominantly unionized, and these higher costs compared to FedEx’s non-union workforce mean the company must pursue margin protection over revenue growth.
FedEx aggressively prioritizes volume growth, enabling its sales to expand year over year. Its recent spinoff of its freight division should help this further as well. For its 2026 fiscal year ended May 31, the company’s $94.7 billion was a strong increase over the prior year’s $87.9 billion. FedEx expects about 11% year-over-year growth in its next fiscal year, which the company shifted into a calendar year starting in June of this year.
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Robert Izquierdo has positions in Amazon, FedEx, and United Parcel Service. The Motley Fool has positions in and recommends Amazon and United Parcel Service. The Motley Fool recommends FedEx. The Motley Fool has a disclosure policy.
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