UPS Q3 Revenue Rises 6.7% to $22.9 Billion: Adjusted EPS of $1.69 Beats Estimates as Full-Year Guidance Is Raised
United Parcel Service (UPS) reported third-quarter results on October 27: consolidated revenue was $22.9 billion, up 6.7% from a year earlier and above market expectations. Operating profit was $1.7 billion, or $2.1 billion on a non-GAAP adjusted basis. Diluted earnings per share were $1.37, and non-GAAP adjusted diluted EPS was $1.69, beating the $1.63 analyst consensus but below the $1.74 reported a year ago.
GAAP results included a net charge of $279 million, or $0.32 per diluted share, comprising $130 million in after-tax transformation strategy costs and a $182 million goodwill impairment in Supply Chain Solutions, partly offset by a $33 million gain on the sale of MD-11 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 rose 7.1%; and Supply Chain Solutions revenue rose 18.2%, although that segment's adjusted operating profit fell to $274 million from $536 million a year earlier.
UPS also raised its full-year 2026 guidance: consolidated revenue of approximately $92.6 billion (up from about $91.2 billion), adjusted operating profit of about $8.75 billion, adjusted diluted EPS of about $7.28 (up from $7.22), and adjusted free cash flow of roughly $6.1 billion, while keeping capital expenditures of about $3 billion and dividend payments of around $5.4 billion unchanged. For the fourth quarter, the company expects revenue of approximately $25.7 billion and adjusted operating profit of about $3.3 billion.
In the earnings release, CEO Carol Tomé said the third-quarter results demonstrated the continued strengthening of the company's business fundamentals, driven by premium growth and greater network efficiency, and that UPS was entering the holiday shipping season 'with the most automated and efficient network in our history.' According to Reuters, UPS has been scaling back lower-margin deliveries for Amazon, its largest customer, and closing facilities and cutting jobs to improve margins, while remaining on track to meet its $3 billion cost-savings target for the year.
Source: GSM · USA (original Chinese edition)
Photo: 图：UPS 干线司机与半挂车，摄于 Texas 州 Arlington（美国农业部 USDA，公共领域）。Image: A UPS feeder driver with a semi-trailer truck in Arlington, Texas (U.S. Department of Agriculture, public domain).
