UPS Beats Q3 Estimates and Raises Full Year 2026 Guidance on Revenue and Earnings

UPS posted third-quarter 2026 consolidated revenue of $22.9 billion, up 6.7% year over year and ahead of the Wall Street estimate of $22.29 billion. Adjusted diluted earnings per share came in at $1.69, topping the consensus estimate of $1.63, though down 3% from the same period a year ago. Adjusted consolidated operating margin was 9.0%.

By segment, U.S. Domestic revenue grew 4.5% year over year to $14.865 billion, International rose 7.1% to $5.007 billion, and Supply Chain Solutions surged 18.2% to $2.981 billion. GAAP results included a net charge of $279 million, or $0.32 per diluted share, which comprised $130 million in after-tax transformation strategy costs and a $182 million goodwill impairment charge.

UPS raised its full-year 2026 guidance, now projecting consolidated revenue of approximately $92.6 billion, up from its prior outlook of $91.2 billion and above the analyst estimate of $91.79 billion. Full-year adjusted EPS guidance was lifted to approximately $7.28, from a prior view of $7.22, versus the $7.19 consensus. The company also set full-year adjusted operating profit guidance at approximately $8.75 billion and adjusted free cash flow of approximately $6.1 billion, while holding capital expenditure guidance steady at $3.0 billion. For the fourth quarter, UPS guided revenue to approximately $25.7 billion and adjusted operating profit to approximately $3.3 billion.

Management cited premium growth and greater network efficiency as the drivers of the stronger outlook, and noted the company has incurred $1.4 billion in transformation costs during 2026 and $1.9 billion in total as of September 30, expecting to achieve nearly $3 billion in full-year benefits from those initiatives.