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As demand rises for specialized medications like GLP-1s, logistics companies including UPS and FedEx are adapting their strategies to be able to better ship and store those pharmaceuticals.

Most injectable GLP-1 medications, including Novo Nordisk's Ozempic and Wegovy and Eli Lilly's Mounjaro and Zepbound, require refrigerated storage for shipment.

The Covid pandemic put healthcare logistics at center stage in 2020, as the shipping of temperature-controlled vaccines quickly became a crucial part of keeping the virus at bay. And as more money has been poured into new pharmaceutical innovations, the transportation of those products have come under the spotlight.

Logistics companies are now investing millions of dollars and strengthening dozens of temperature-controlled facilities to tap into the market.

In June, UPS announced a new $48 million investment in temperature-controlled facilities as it sees a growing demand for critical treatments. According to Growth Market Reports, the demand for temperature-sensitive biologics is projected to grow at an 8.3% compound annual growth rate through 2033 and reach a market value of roughly $39.1 billion.

Obesity and diabetes drugs, meanwhile, have been booming in popularity. A July Gallup poll found that 11% of Americans take GLP-1 medications for weight loss purposes in 2026, up from just 3% in 2024.

But if they're not stored and shipped at the correct temperature, they risk losing their efficacy.

The Food and Drug Administration has warned that improper storage during shipping can affect the medicine's quality and recommends patients do not use GLP-1 drugs that arrive "warm or with insufficient refrigeration."

Other biologics, like some vaccines, insulin and antibiotics, also require specialized shipment to maintain efficacy. For logistics companies, that means ensuring the proper storage and movement every step of the way.

Bulking upHealthcare logistics have proven to be one of UPS' biggest opportunities. On an earnings call with analysts in April, CEO Carol Tomé said the company's global healthcare portfolio has gained market share every year since 2021, generating its first ever $3 billion healthcare revenue quarter in the first quarter of this year.

UPS President of Healthcare John Bolla told CNBC that the company is seeing more healthcare companies looking for partners to keep up with the volume.

"One of the biggest opportunities we see is supporting the shift toward more specialized therapies and more care delivered outside of traditional healthcare settings," Bolla said.

He said UPS is experiencing "rapid growth" in biologics, cell and gene therapies, though the biggest challenge is that the margin for error is small — even a brief stray from the correct temperature can ruin the medicines, Bolla said.

"But that's also what's creating such a significant opportunity in healthcare logistics," he said. "As treatments become more specialized and supply chains become more complex, healthcare companies need partners that can provide not just temperature-controlled storage or transportation, but end-to-end visibility, control and reliability across the entire network."

FedEx is also tapping into the trend, launching a life sciences organization earlier this month specifically to support the movement of pharmaceuticals and other healthcare products.

On an earnings call in June, FedEx's Chief Customer Officer Brie Carere told analysts that healthcare transportation revenue in fiscal year 2026 reached nearly $10 billion.

"We're building end-to-end solutions focused on global pharma customers, and what's so important with global pharma is that you have to recognize that there's a patient at the end of every delivery or someone that's waiting to be treated," said Nick Gennari, FedEx's president of healthcare. "So we take this very, very seriously."

With GLP-1s specifically, Gennari said there's an increasing complexity to delivering those medications, with forms ranging from injectables to oral pills and going direct-to-consumer. But with that complexity comes a growth opportunity for FedEx, which he said is "ideally positioned."

Gennari said FedEx has specialized technology, including its machine learning engine that allows customers to see product movement with predictive abilities, as well as its technology that identifies healthcare products and treats each differently depending on its unique needs.

Gennari also said he's "very comfortable" with the company's base capabilities and its plans for expansion, including cold-chain logistics.

"Much of the infrastructure that's required to be successful in this space, we already have. We have the airline; we have an incredible schedule; we have the lift capabilities. The network is hardened and works very well," he said.

Complex supply chainsC.H. Robinson told CNBC the logistics company had surpassed $1 billion in revenue in healthcare logistics alone over the past year, largely due to the growth in GLP-1 drugs, as it has been investing in temperature-controlled facilities.

"You need to really have that end-to-end connectivity, so you've got to have a really nice network and infrastructure built out in order to properly service the healthcare customers," said Ronnie Davis, the company's vice president of North American surface transportation.

Davis said the supply chain for medications has also become more complicated. In addition to requiring refrigeration, many drugs have a short shelf life and need to be delivered in precise windows of time.

"A lot of the innovation has been on getting the drugs to the market," Davis said. "I think what you're starting to see is that's really putting stress on the capabilities of the cold chain supply chains in the marketplace. … With the rise of GLP-1s and other specialized medicine, it's really creating a competitive nature for the same refrigerated supply resources that are there and, quite candidly, that supply is not unlimited, it's constrained."

Davis said C.H. Robinson is working to amp up its capabilities, especially to keep up with the higher volume. At the same time, he added, pharma companies are also trying to get creative to bring their products to market with a longer shelf life.

That innovation is also intersecting with the growth of artificial intelligence capabilities, according to Hendrik Venter, CEO of DHL Supply Chain. The logistics company uses AI to monitor critical life science products, tracking temperatures and anticipating where an issue might happen.

"You're seeing the industry moving from conventional to biopharma," Venter told CNBC. "You need to have a supply chain that is resilient and capable of shipping in all of these various temperature zones."

The company announced last year that it plans to invest 2 billion euros ($2.25 billion) in health logistics by 2030, with half of that allocated to the Americas.

A lot of pharmaceutical companies are also outsourcing their warehousing activities to DHL, Venter said. The company takes over those facilities, manages them and integrates them into the rest of their network.

DHL launched a pharmaceutical air corridor around the world, with a dedicated aircraft and connected network that ensures the drugs are not being shipped through separate regulatory environments.

"You cannot lose a shipment. You cannot replace it. It needs to be delivered on time, every time, in the right quality and temperatures," Venter said. "So we continue to selectively look at how to strengthen that network."

United Parcel Service (UPS - Free Report) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.

The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 28. On the other hand, if they miss, the stock may move lower.

While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.

Zacks Consensus EstimateThis package delivery service is expected to post quarterly earnings of $1.65 per share in its upcoming report, which represents a year-over-year change of +6.5%.

Revenues are expected to be $21.75 billion, up 2.5% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.17% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for UPS?For UPS, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +1.06%.

On the other hand, the stock currently carries a Zacks Rank of #3.

So, this combination indicates that UPS will most likely beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that UPS would post earnings of $1.04 per share when it actually produced earnings of $1.07, delivering a surprise of +2.88%.

Over the last four quarters, the company has beaten consensus EPS estimates three times.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

UPS appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

United Parcel Service is investing $48 million in 27 temperature‑controlled facilities as the industry sees a boom in healthcare logistics, CNBC has learned exclusively.

The facilities, located across the Americas, Europe and Asia, are optimized for moving around shipments that need to be kept at certain temperatures. The company said the investment will help it stay ahead of a boom in medicines and pharmaceuticals — like some GLP-1s — that have to be kept at certain temperatures by improving speed and end-to-end chain of custody.

"Our global cross-dock facilities strengthen our end-to-end cold-chain capabilities to ensure critical treatments are delivered safely and reliably to patients around the world," said Kate Gutmann, UPS' president of international, healthcare and supply chain solutions. "This effort – and all of our work in healthcare logistics – extends from a deep understanding that we're doing more than moving packages."

The demand for temperature-sensitive biologics is projected to grow at an 8.3% compound annual growth rate through 2033 and reach a market value of roughly $39.1 billion, according to Growth Market Reports. Many new medicines are required to be stored at specific temperatures to maintain efficacy, UPS said, making healthcare logistics more crucial than before.

According to the World Health Organization, up to 50% of global vaccines are wasted every year, with a significant portion of that coming from cold-chain storage issues.

"These investments reflect our commitment to continue to align our leading end-to-end supply chain to protect innovative treatments and diagnostics, supporting better patient outcomes," UPS Healthcare President John Bolla said in a statement.

UPS' move comes as the industry overall has seen growing investments in the space, especially with the meteoric rise of GLP-1 drugs. Medicines like Novo Nordisk's Wegovy and Ozempic require strict refrigeration and temperature control during transit. A November KFF poll found that 1 in 8 Americans are taking GLP-1s.

UPS CEO Carol Tomé said on the company's first-quarter earnings call in April that healthcare remains one of the company's top priorities and biggest areas of growth.

"Our global healthcare portfolio has gained market share every year since 2021," she said on the call. "And in the first quarter of this year, we generated our first $3 billion healthcare revenue quarter ever, with all three of our segments delivering year-over-year revenue growth."

Tomé added that UPS is committed to continuing to "lean into that space in a meaningful way."