Highlights

  • Third quarter revenue was $22.9 billion, with GAAP diluted EPS of $1.37 and non-GAAP adjusted diluted EPS of $1.69.
  • Full-year 2026 guidance was raised to revenue of about $92.6 billion and non-GAAP adjusted diluted EPS of about $7.28.
  • GAAP results included a $182 million goodwill impairment in Supply Chain Solutions and $130 million of after-tax transformation strategy costs.
  • Revenue grew in all three segments: U.S. Domestic $14,865 million, International $5,007 million and Supply Chain Solutions $2,981 million.

United Parcel Service (NYSE: UPS) shares were trading at USD 104.54 on October 27, 2026, up 4.20%, with a relative volume at time of 2.51. The logistics company announced a new global operating model in September, opened an air hub at Clark International Airport in the Philippines on October 15, and reported third quarter 2026 results with raised fourth quarter and full-year guidance on October 27.

UPS is incorporated in Delaware and lists its principal executive offices in Atlanta, Georgia. It provides integrated logistics solutions to customers in more than 200 countries and territories, reports U.S. Domestic, International and Supply Chain Solutions results, and has approximately 460,000 employees. Its 2025 revenue was $88.7 billion, and its fiscal year ends December 31.

Third Quarter Results

UPS reported consolidated revenue of $22.9 billion, up 6.7%. Consolidated operating profit was $1.7 billion, and non-GAAP adjusted operating profit was $2.1 billion. The operating margin was 7.6%, compared with 8.4% a year earlier, and the non-GAAP adjusted operating margin was 9.0%, compared with 10.0%.

Net income was $1,163 million, or $1.37 per diluted share, compared with $1,311 million, or $1.55. Non-GAAP adjusted diluted EPS was $1.69, compared with $1.74. GAAP results included a net charge of $279 million, or $0.32 per diluted share, made up of $130 million of after-tax transformation strategy costs and a $182 million goodwill impairment charge, partly offset by a $33 million gain on the sale of MD-11 assets. The third quarter of 2025 included a $330 million pre-tax gain from a sale-leaseback transaction, or $0.30 of EPS.

For the nine months, net income was $2,631 million, or $3.09 per diluted share, compared with $3,781 million, or $4.46. Cash flows from operating activities were $5,986 million, compared with $5,148 million, and non-GAAP free cash flow was $4,220 million, compared with $2,744 million.

Segment Performance

U.S. Domestic revenue was $14,865 million, compared with $14,220 million, up 4.5%, with revenue per piece up 6.1%. Operating profit was $906 million, or $1,034 million on a non-GAAP adjusted basis, and the operating margin was 6.1%. Average daily U.S. Domestic package volume was 15,621 thousand, compared with 16,150 thousand. U.S. Domestic package cost per piece was $13.45, up 4.1%, and non-GAAP adjusted cost per piece was $13.32, up 5.5%.

International revenue was $5,007 million, compared with $4,673 million, up 7.1%, with revenue per piece up 15.0%. Operating profit was $746 million and the operating margin was 14.9%.

Supply Chain Solutions revenue was $2,981 million, compared with $2,522 million, up 18.2%, which the company attributed to forwarding and logistics, including healthcare. Operating profit was $92 million, compared with $525 million, and non-GAAP adjusted operating profit was $274 million, compared with $536 million. The operating margin was 3.1%, and the non-GAAP adjusted margin was 9.2%.

Operations and Peak Season

On the call, management said healthcare revenue was more than $3 billion for the third consecutive quarter and that small and medium-sized businesses represented 35.1% of total U.S. volume. It said it expects average daily volume to increase approximately 25% from the third quarter to the fourth quarter, consistent with last year, while fourth quarter U.S. average daily volume is expected to be lower year over year, reflecting actions taken earlier in the year to reduce Amazon volume.

2026 Outlook

UPS raised its fourth quarter and full-year 2026 guidance. For the fourth quarter, it expects revenue of approximately $25.7 billion and non-GAAP adjusted operating profit of approximately $3.3 billion. For the full year, it now expects consolidated revenue of approximately $92.6 billion, non-GAAP adjusted operating profit of approximately $8.75 billion, non-GAAP adjusted diluted EPS of approximately $7.28 and non-GAAP adjusted free cash flow of approximately $6.1 billion. It confirmed capital expenditures of approximately $3.0 billion, dividend payments of around $5.4 billion subject to board approval, an effective tax rate of approximately 23% and $1.3 billion of pension contributions.