UPS Beats Q3 Estimates and Raises Full-Year Guidance as Amazon Volume Cuts Improve Margins

United Parcel Service posted third-quarter 2026 revenue of $22.9 billion, up 6.7% year over year and above the $22.29 billion analyst estimate, while adjusted earnings per share of $1.69 topped the $1.63 consensus. The results were driven by a deliberate shift away from lower-margin Amazon shipments toward higher-paying international air freight and premium domestic volume, with adjusted operating margin reaching 9.0%. GAAP results included a $279 million net charge, or $0.32 per diluted share, comprising a $182 million goodwill impairment charge among other items, and adjusted EPS fell 3% year over year despite the revenue gain.

All three segments grew. U.S. Domestic revenue rose 4.5% to $14.87 billion, International climbed 7.1% to $5.01 billion, and Supply Chain Solutions surged 18.2% to $2.98 billion. The company incurred $1.4 billion in restructuring-related costs during 2026 and $1.9 billion in total costs as of September 30, and it expects to achieve nearly $3 billion in full-year benefits from those initiatives.

Management raised full-year 2026 revenue guidance to approximately $92.6 billion, up from a prior target of $91.2 billion and above the $91.79 billion consensus estimate. Full-year adjusted EPS guidance was lifted to approximately $7.28, versus the $7.19 estimate, and adjusted operating profit guidance was set at approximately $8.75 billion. Free cash flow guidance was raised to approximately $6.1 billion, against planned capital expenditures of $3 billion and dividend payments of $5.4 billion. For the fourth quarter, UPS guided for revenue of approximately $25.7 billion and adjusted operating profit of approximately $3.3 billion. CEO Carol Tome also flagged a $15 billion logistics opportunity linked to data center growth.

Shares rose roughly 5.8% on the day, crossing above their 200-day moving average of $104.60 and touching $106.33 intraday, with FedEx shares edging modestly higher in sympathy.