United Parcel Service has raised its full-year 2026 outlook after third-quarter revenue climbed 6.7 per cent to $22.9 billion, with growth across all three of its business segments, according to the company’s earnings release and market coverage by Zacks. Adjusted diluted earnings per share came in at $1.69, beating the consensus estimate of $1.63, while GAAP diluted earnings per share were $1.37. Consolidated operating profit was $1.7 billion, and adjusted operating profit reached $2.1 billion, for an adjusted operating margin of 9.0 per cent.
The raised guidance
UPS now expects full-year 2026 consolidated revenue of approximately $92.6 billion, up from its previous projection of about $91.2 billion, with adjusted operating profit of about $8.75 billion (up from $8.65 billion) and adjusted diluted earnings per share of about $7.28 (up from $7.22). The company also raised its adjusted free cash flow target to approximately $6.1 billion. For the fourth quarter, UPS expects revenue of approximately $25.7 billion and adjusted operating profit of around $3.3 billion. “Given the strength we see in the business, we are raising our full-year financial guidance,” chief executive officer Carol Tomé said in the release.
Premium growth over volume
The US Domestic segment drove the improvement: revenue rose 4.5 per cent even as average daily volume fell about 3.3 per cent, because revenue per piece climbed 6.1 per cent, lifting domestic operating profit 14.3 per cent and expanding its margin to 7.0 per cent. International revenue grew 7.1 per cent with a 14.9 per cent margin, returning to operating profit growth for the first time in six quarters, while Supply Chain Solutions revenue grew 18.2 per cent to $2.98 billion even as its adjusted operating profit fell to $274 million. GAAP results carried a net charge of $279 million, including $130 million in transformation costs and a $182 million goodwill impairment in Supply Chain Solutions, partly offset by a $33 million gain from the sale of MD-11 assets. Tomé said UPS was entering the holiday shipping season “from a position of strength, with the most automated and efficient network in our history” — a message aimed squarely at shippers choosing carriers for the peak season.
