UPS beats Q3 forecasts with $22.9 billion revenue and raises 2026 outlook
UPS reported adjusted earnings of $1.69 a share on revenue up 6.7% to $22.9 billion and lifted its full-year revenue forecast to $92.6 billion, even as US parcel volumes kept falling after its Amazon cutback.
At a glance
- UPS said on Tuesday, October 27, 2026, that third-quarter revenue rose 6.7% to $22.9 billion and adjusted earnings were $1.69 a share, both ahead of analysts' forecasts.
- It raised its 2026 revenue outlook to about $92.6 billion from $91.2 billion and expects adjusted earnings of about $7.28 a share.
- US average daily package volume fell to 15.6 million from 16.2 million as UPS finished cutting back low-margin Amazon deliveries, but revenue per piece rose 6.1%.
- Profit fell from a year earlier, partly because of a $182 million goodwill impairment in the supply chain business; GAAP earnings were $1.37 a share.
UPS, the world's largest parcel delivery company, beat Wall Street's forecasts for the third quarter and raised its full-year outlook on Tuesday, October 27, 2026. Revenue rose 6.7% to $22.9 billion and adjusted earnings came in at $1.69 a share, as higher prices per package and fast growth outside the US made up for a continued fall in American parcel volumes. The company now expects 2026 revenue of about $92.6 billion, up from $91.2 billion.
The numbers
Analysts had expected adjusted earnings of about $1.63 a share on revenue of roughly $22.3 billion. On a reported (GAAP) basis, profit was lower than a year earlier, weighed down by a $182 million goodwill write-down in the supply chain unit and $130 million of after-tax restructuring costs.
| Measure | Q3 2026 | Q3 2025 |
|---|---|---|
| Revenue | $22.9 billion (+6.7%) | $21.4 billion |
| Adjusted EPS | $1.69 | $1.74 |
| GAAP EPS | $1.37 | $1.55 |
| Adjusted operating margin | 9.0% | 10.0% |
| US daily packages | 15.62 million | 16.15 million |
| Free cash flow (9 months) | $4.22 billion | $2.74 billion |
By business, the US domestic unit grew revenue 4.5% to $14.9 billion and lifted its adjusted operating margin to 7.0% from 6.4%, helped by a 6.1% rise in revenue per piece. International revenue rose 7.1% to $5.0 billion with a 14.9% margin. Supply Chain Solutions grew revenue 18.2% to $3.0 billion, but its adjusted margin fell to 9.2% from 21.3%.
The new outlook
| 2026 guidance | New | Previous |
|---|---|---|
| Revenue | ~$92.6 billion | ~$91.2 billion |
| Adjusted operating profit | ~$8.75 billion | — |
| Adjusted EPS | ~$7.28 | — |
| Free cash flow | ~$6.1 billion | — |
| Q4 revenue | ~$25.7 billion | — |
UPS also confirmed plans to spend about $3 billion on investment this year and pay about $5.4 billion in dividends.
Background
UPS has spent the past two years reshaping its network. It decided to roughly halve the volume it carries for Amazon, its largest customer, because those deliveries earned thin margins, and says that reduction was completed in the second quarter of 2026. At the same time it has cut operational jobs, closed daily operations at many buildings and invested heavily in automation under a programme it calls "Efficiency Reimagined", which it expects to deliver nearly $3 billion in savings this year and to finish in late 2027.
Reactions
"Given the strength we see in the business, we are raising our full-year financial guidance," chief executive Carol Tomé said, adding that UPS is heading into the holiday peak season with what she called the most automated and efficient network in its history. Shares rose modestly in New York trading after the results, according to market data.
Why it matters
UPS delivers millions of packages a day for shops, factories and households, so its results are watched as a health check on American consumers and global trade. Strong international growth suggests cross-border trade is holding up despite high fuel costs and shipping disruption in the Gulf. For workers, the results show the trade-off at the heart of the company's plan: fewer packages and fewer jobs, but more profit per delivery.
What happens next
The busy October–December holiday season is UPS's most important quarter, and the company expects about $25.7 billion of revenue in it. Investors will watch whether volumes stabilise now that the Amazon cutback is finished, and the company will report full-year results in early 2027.
Questions people are asking
How did UPS do in the third quarter of 2026?
UPS reported revenue of $22.9 billion, up 6.7% from a year earlier, and adjusted earnings of $1.69 per share, beating analysts' forecasts of about $1.63 and $22.3 billion. GAAP earnings fell to $1.37 per share from $1.55.
What is UPS's outlook for 2026?
UPS now expects 2026 revenue of about $92.6 billion, up from $91.2 billion previously, adjusted operating profit of about $8.75 billion, adjusted earnings of about $7.28 per share and free cash flow of about $6.1 billion.
Why are UPS package volumes falling?
UPS has deliberately reduced deliveries for its largest customer, Amazon, which were less profitable; it says those planned reductions were completed in the second quarter of 2026. US daily volume fell to about 15.6 million packages in the third quarter, but revenue per package rose.
