UPS Posts Stronger-Than-Expected Quarter, Lifts Full-Year Outlook

United Parcel Service said Tuesday that third-quarter revenue rose 6.7% to $22.9 billion, with growth in every business segment, and the company raised its full-year 2026 guidance as package volumes and prices both improved. The results, detailed in a filing with the Securities and Exchange Commission, showed consolidated operating profit of $1.74 billion on a GAAP basis and $2.05 billion on a non-GAAP adjusted basis, a 9.0% adjusted operating margin.

Diluted earnings per share came to $1.37 under generally accepted accounting principles, below the $1.69 non-GAAP adjusted figure, after the company booked a $279 million net charge tied mainly to transformation costs and a $182 million goodwill impairment in its Supply Chain Solutions unit, partly offset by a $33 million gain on the sale of MD-11 freighter assets.

UPS's largest division, U.S. Domestic, posted revenue of $14.87 billion, up 4.5%, driven by a 6.1% increase in revenue per piece delivered rather than higher volume alone. The International segment grew faster, with revenue up 7.1% to just over $5 billion and a 14.9% operating margin, powered by a steep 15% rise in revenue per piece. Supply Chain Solutions, which includes freight forwarding, logistics and healthcare-related shipping, posted the fastest growth of the three, with revenue up 18.2% to $2.98 billion, though its adjusted operating margin of 9.2% was weighed down on a GAAP basis by the goodwill writedown.

Chief executive Carol Tomé said in the earnings statement posted to UPS's investor relations site that "our third-quarter results demonstrate the continued strengthening of our business fundamentals" and that, "given the strength we see in the business, we are raising our full-year financial guidance." The company now expects full-year consolidated revenue of roughly $92.6 billion, non-GAAP adjusted operating profit of about $8.75 billion and non-GAAP adjusted diluted earnings per share of approximately $7.28, alongside an adjusted free cash flow target of about $6.1 billion, all higher than previous targets.

A rebound after a rocky stretch

The gains were driven less by shipping more packages than by charging more for each one: revenue per piece rose across both the domestic and international units, even as overall package counts grew more modestly than revenue. The guidance raise is the latest sign that UPS executives see momentum building into year-end, even after absorbing the $279 million in transformation and impairment charges disclosed alongside Tuesday's results. UPS is scheduled to discuss the quarter on a conference call with analysts later Tuesday morning, where executives are expected to field questions on whether the pricing-led growth can hold into the holiday peak season.