United Parcel Service (UPS) Earnings Date & Reports

Key Takeaways

• United Parcel Service (UPS) reported third-quarter 2026 revenue of $22.9 billion, up roughly 6.7% year over year and above Wall Street's consensus estimate of about $22.3 billion.
• Adjusted diluted earnings per share (EPS, or profit allocated to each share) came in at $1.69, beating the consensus estimate of approximately $1.63.
• GAAP (Generally Accepted Accounting Principles) net income was $1.16 billion, or $1.37 per diluted share, down slightly from $1.31 billion, or $1.55 per share, a year earlier.
• All three business segments grew, led by an 18.2% revenue increase in Supply Chain Solutions, a 7.1% gain in International, and a 4.5% rise in U.S. Domestic.
• Management raised its full-year 2026 guidance for the second consecutive quarter, lifting the consolidated revenue outlook to about $92.6 billion.
• For more detail on the company's Major News, Today's Price Move, Price Targets, and Forecast, explore the dedicated UPS pages for ongoing updates and analysis.
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Earnings Context and Why It Matters

United Parcel Service (UPS) is navigating a multi-year transformation designed to create a leaner, more automated network while managing the planned volume decline from its largest customer, Amazon. The third-quarter report serves as a critical checkpoint on whether those efficiency efforts are translating into stronger profitability heading into the peak holiday shipping season. With 2025 full-year revenue of $88.7 billion and operations spanning more than 200 countries and territories, UPS results offer a broad read on global trade, e-commerce demand, and industrial activity. Investors also watch the company's cost-per-piece and free cash flow trends closely, as they reveal how effectively the turnaround is converting volume into durable earnings power.

Reported Results

For the third quarter ended September 30, 2026, UPS posted consolidated revenue of $22.9 billion, an increase of roughly 6.7% from the prior-year period and ahead of the consensus estimate of about $22.3 billion. Adjusted diluted EPS reached $1.69, topping the roughly $1.63 analysts had expected. On a GAAP basis, net income was $1.16 billion, or $1.37 per diluted share, compared with $1.31 billion, or $1.55 per share, a year ago. GAAP results included about $279 million in net charges, reflecting transformation strategy costs and a goodwill impairment in Supply Chain Solutions, partially offset by gains on the sale of previously impaired MD-11 aircraft assets.

By segment, U.S. Domestic revenue rose 4.5% to $14.865 billion, driven by a 6.1% increase in revenue per piece. International revenue grew 7.1% to $5.007 billion, supported by a 15.0% gain in revenue per piece. Supply Chain Solutions revenue climbed 18.2% to $2.981 billion, led by growth in forwarding and logistics, including healthcare. Management also raised full-year guidance to approximately $92.6 billion in revenue, $8.75 billion in adjusted operating profit, $7.28 in adjusted diluted EPS, and $6.1 billion in adjusted free cash flow.

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Market Reaction and Investor Sentiment

Shares of UPS rose slightly in premarket trading following the release, reflecting a generally positive reception to a beat on both revenue and earnings coupled with another upward revision to full-year guidance. Investor sentiment has been cautiously optimistic as the company works through its turnaround, with particular focus on whether cost-reduction programs can offset the drag from planned volume reductions with Amazon. The stronger-than-expected Supply Chain Solutions and International results, along with improved revenue per piece in the domestic network, appeared to reinforce confidence that the efficiency strategy is taking hold ahead of the seasonally important fourth quarter.

Forward Outlook and Key Factors to Monitor

Looking ahead, UPS guided to fourth-quarter revenue of approximately $25.7 billion and adjusted operating profit of about $3.3 billion, positioning the company for a busy holiday season. Management indicated the business is entering peak shipping with what it described as the most automated and efficient network in its history.

Investors will want to monitor how domestic average daily volume trends evolve now that the planned volume reductions from its largest customer have been completed. The company expects nearly $3 billion in full-year transformation program benefits, with the Efficiency Reimagined initiative not expected to conclude until the fourth quarter of 2027, suggesting continued margin opportunities remain on the horizon.

Other factors worth watching include cost-per-piece trends, which rose modestly on an adjusted basis, and free cash flow generation, which management projects at about $6.1 billion for the full year. Confirmed capital expenditures of approximately $3.0 billion, planned dividend payments of around $5.4 billion subject to board approval, and an effective tax rate of roughly 23% will also shape how efficiently UPS converts revenue into shareholder returns through 2026 and beyond.

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