UPS Gross Margin Analysis
Updated 987h ago·SEC filings & market data
Key Takeaway
Gross margin shows the share of revenue left after paying direct delivery and sorting costs; UPS’s current 13.0% means only $0.13 of every sales dollar clears those expenses.
Sector Performance
5th percentileUPS
13.0%
Sector Median
47.4%
Sector Avg
48.1%
Prior Period
15.8%(Jul 2026)
Deep Analysis
Gross margin shows the share of revenue left after paying direct delivery and sorting costs; UPS’s current 13.0% means only $0.13 of every sales dollar clears those expenses.
That sits far under the 47.0% sector median and ranks in the 5th percentile, placing UPS near the bottom of its peer group on cost efficiency. The metric is contracting, falling 17.7% quarter-over-quarter from 15.8%, though year-over-year data is not available. A low level combined with a sharp downward move signals elevated margin pressure that could hurt earnings power if freight or labor costs climb further. This negative operational trend conflicts with a bullish case, but it does not break the overall NEUTRAL verdict, which already accounts for mixed fundamentals.
Frequently Asked Questions
What does the Gross Margin tell investors about UPS?
Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.
How is the Gross Margin calculated?
Gross Margin is calculated as: Gross Profit / Revenue.
Learn More About Gross Margin
The Formula
Gross Profit / Revenue
Why It Matters
Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.
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13.0%
Sector Median
47.4%
Sector Avg
48.1%
How UPS's Gross Margin compares to sector peers.
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