Goldman Adds UPS to Conviction List as Amazon Wind-Down Completes

United Parcel Service enters the back half of 2026 with a sharply different network than it had a year ago. The roughly two million daily packages of Amazon volume that once anchored its U.S. operation have now been fully wound down, closing out the largest deliberate volume reduction in the carrier's modern history and completing a strategic shift management first outlined in 2025.

Goldman Sachs added UPS to its U.S. Conviction List in its August update, pointing to the completed Amazon transition and the structural cost leverage the firm expects to emerge from the company's network redesign. The endorsement lands with shares near multi-year lows around $105, despite a second-quarter beat that delivered adjusted earnings of $1.76 per share on $22.8 billion in revenue, both ahead of consensus. The stock nonetheless fell more than 6% on the print as investors focused on margin pressure and restructuring costs.

UPS declared a quarterly dividend of $1.64 per share, payable September 3 with an August 17 record date, holding the annualized payout at $6.56. Analyst consensus sits at a moderate buy, with the debate centering on whether cost savings from the redesigned network arrive fast enough to offset the revenue lost with the Amazon business.