United Parcel Service (UPS) has seen its price target elevated by Bernstein to $128, a move that comes after the logistics giant reported impressive fourth-quarter financial results for 2025. This strategic decision by Bernstein reflects confidence in UPS's performance and its forward-looking guidance, despite some internal shifts. The company is actively restructuring its operations, including substantial workforce reductions and facility closures, as it pivots towards more lucrative segments of its delivery business.
Bernstein Boosts UPS Valuation Amidst Operational Restructuring
On Wednesday, February 11, 2026, David Vernon, a prominent analyst at Bernstein, adjusted his outlook for United Parcel Service, Inc. (NYSE:UPS), elevating the stock's price recommendation to $128 from its previous $125. This revision reaffirms an 'Outperform' rating for the global shipping leader. This positive assessment by Bernstein follows UPS's exceptionally strong performance in the fourth quarter of 2025, which saw revenue figures exceeding forecasts, even as profit margins were slightly below expectations. Bernstein highlighted that the impressive Q4 results, combined with a healthier margin position at the close of the year, effectively counterbalanced the more conservative margin projections for the future.
Simultaneously, a report from Reuters on January 27 revealed UPS's plans to eliminate approximately 30,000 positions and shut down an additional 24 facilities throughout 2026. These measures are part of a broader, ongoing initiative by UPS to decrease its reliance on lower-profit deliveries associated with Amazon, thereby redirecting its focus towards more profitable areas of its logistics operations. This strategic realignment has been a consistent theme for the company. Earlier in the preceding year, UPS had indicated its intention to expedite the reduction of millions of Amazon-related deliveries, categorizing this volume as significantly dilutive to its overall margins. Both UPS and its competitors, such as FedEx, have also been contending with a softer demand landscape across the expansive delivery market.
In 2025, UPS had already undertaken significant cuts, shedding 48,000 roles, offering voluntary severance packages to drivers, and closing 93 locations, as the volume of Amazon-related shipments continued to decline. The additional workforce reductions planned for 2026 are projected to occur primarily through natural attrition and another round of voluntary buyouts targeted at full-time drivers. According to Brian Dykes, the Chief Financial Officer, the company does not anticipate implementing mandatory layoffs. United Parcel Service, Inc. (NYSE:UPS) is a key player in providing integrated logistics services to clients across more than 200 countries and territories globally, with its U.S. Domestic Package division offering an extensive array of air and ground delivery solutions throughout the United States.
This strategic financial adjustment by Bernstein and the operational restructuring undertaken by UPS underscore a dynamic business environment. Companies like UPS are continually seeking to optimize their portfolios and enhance profitability by aligning their services with evolving market demands. The focus on higher-margin business and efficient cost management reflects a proactive approach to maintaining a competitive edge in the fiercely contested logistics sector. It also highlights the intricate balance companies must strike between operational efficiency and market expectations, particularly in sectors undergoing significant transformation.