Free cash flow
United Parcel Service, Inc. Free cash flow increased by 71.0% to $2.59B in Q4 2025 compared to the prior quarter. Year-over-year, this metric grew by 16.6%, from $2.22B to $2.59B. Over 4 years (FY 2021 to FY 2025), Free cash flow shows a downward trend with a -18.5% CAGR. This is a positive signal — higher values indicate stronger performance for this metric.
Analysis
How to read this metric
An increase suggests strong operational efficiency and the ability to self-fund future innovation or return capital to shareholders, while a decrease may indicate heavy capital expenditure cycles or declining operational profitability.
Detailed definition
Free cash flow represents the cash generated by a company after accounting for cash outflows to support operations and m...
Peer comparison
High-growth semiconductor and AI infrastructure peers typically prioritize reinvestment, so free cash flow margins are often compared against R&D intensity and capital expenditure requirements of industry rivals.
cf_free_cash_flowHistorical Data
| Q2 '21 | Q3 '21 | Q4 '21 | Q1 '22 | Q2 '22 | Q3 '22 | Q4 '22 | Q1 '23 | Q2 '23 | Q3 '23 | Q4 '23 | Q1 '24 | Q2 '24 | Q3 '24 | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Value | $3.09B | $2.41B | $1.62B | $3.93B | $2.97B | $1.59B | $841.00M | $1.75B | $2.03B | $944.00M | $362.00M | $2.28B | $1.06B | $655.00M | $2.22B | $1.44B | -$775.00M | $1.51B | $2.59B |
| QoQ Change | — | -22.0% | -32.6% | +142.4% | -24.4% | -46.6% | -47.1% | +107.8% | +15.9% | -53.4% | -61.7% | +530.1% | -53.5% | -38.2% | +238.5% | -35.0% | -153.7% | +295.1% | +71.0% |
| YoY Change | — | — | — | — | -3.7% | -34.0% | -48.2% | -55.5% | -31.9% | -40.6% | -57.0% | +30.5% | -47.7% | -30.6% | +512.4% | -36.8% | -173.1% | +130.8% | +16.6% |
Free cash flow at Other Companies
Frequently Asked Questions
- What is United Parcel Service, Inc.'s free cash flow?
- United Parcel Service, Inc. (UPS) reported free cash flow of $2.59B in Q4 2025.
- How has United Parcel Service, Inc.'s free cash flow changed year-over-year?
- United Parcel Service, Inc.'s free cash flow increased by 16.6% year-over-year, from $2.22B to $2.59B.
- What is the long-term trend for United Parcel Service, Inc.'s free cash flow?
- Over 4 years (2021 to 2025), United Parcel Service, Inc.'s free cash flow has grown at a -18.5% compound annual growth rate (CAGR), from $10.81B to $4.77B.
- What does free cash flow mean?
- The cash a company has left over after paying for its operating expenses and capital investments.