Q3 EPS Estimate for United Parcel Service Lowered by Analyst

United Parcel Service, Inc. (NYSE:UPS) – Investment analysts at Zacks Research cut their Q3 2026 earnings per share (EPS) estimates for shares of United Parcel Service in a research note issued on Tuesday, August 18th. Zacks Research analyst Team now forecasts that the transportation company will earn $1.60 per share for the quarter, down from their prior forecast of $1.82. The consensus estimate for United Parcel Service’s current full-year earnings is $7.22 per share. Zacks Research also issued estimates for United Parcel Service’s Q4 2026 earnings at $2.79 EPS, FY2026 earnings at $7.22 EPS, Q1 2027 earnings at $1.41 EPS, Q2 2027 earnings at $1.34 EPS, Q3 2027 earnings at $1.68 EPS, Q4 2027 earnings at $3.12 EPS, FY2027 earnings at $7.55 EPS, Q1 2028 earnings at $1.36 EPS, Q2 2028 earnings at $1.52 EPS and FY2028 earnings at $7.69 EPS.

United Parcel Service (NYSE:UPS) last issued its quarterly earnings results on Tuesday, July 28th. The transportation company reported $1.76 earnings per share for the quarter, topping analysts’ consensus estimates of $1.65 by $0.11. The company had revenue of $22.83 billion for the quarter, compared to the consensus estimate of $21.86 billion. United Parcel Service had a net margin of 5.08% and a return on equity of 37.50%. The firm’s quarterly revenue was up 7.6% on a year-over-year basis. During the same period in the previous year, the firm earned $1.55 EPS. United Parcel Service has set its FY 2026 guidance at 7.220-7.220 EPS.

Several other equities analysts have also weighed in on the company. Stephens reduced their price objective on United Parcel Service from $135.00 to $130.00 and set an “overweight” rating for the company in a report on Wednesday, July 29th. Sanford C. Bernstein boosted their price objective on shares of United Parcel Service from $130.00 to $133.00 and gave the company an “outperform” rating in a research note on Tuesday, July 21st. Citigroup raised their price target on United Parcel Service from $127.00 to $132.00 and gave the company a “buy” rating in a report on Thursday, July 9th. UBS Group raised their price objective on shares of United Parcel Service from $123.00 to $124.00 and gave the company a “buy” rating in a research report on Wednesday, July 29th. Finally, Oppenheimer upped their target price on shares of United Parcel Service from $115.00 to $117.00 and gave the stock an “outperform” rating in a research report on Wednesday, July 29th. One equities research analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating, eleven have issued a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the company currently has a consensus rating of “Hold” and a consensus target price of $117.41.

United Parcel Service Stock Down 0.1%

United Parcel Service stock opened at $101.94 on Wednesday. The firm has a 50 day moving average price of $108.65 and a 200-day moving average price of $106.45. The company has a quick ratio of 1.18, a current ratio of 1.18 and a debt-to-equity ratio of 1.58. United Parcel Service has a twelve month low of $82.00 and a twelve month high of $122.41. The company has a market capitalization of $86.73 billion, a P/E ratio of 18.95, a P/E/G ratio of 1.89 and a beta of 1.06.

Institutional Investors Weigh In On United Parcel Service

Institutional investors have recently added to or reduced their stakes in the company. Vanguard Group Inc. grew its holdings in United Parcel Service by 1.8% in the 4th quarter. Vanguard Group Inc. now owns 68,496,420 shares of the transportation company’s stock worth $6,794,160,000 after acquiring an additional 1,218,432 shares during the last quarter. State Street Corp boosted its holdings in shares of United Parcel Service by 3.3% during the fourth quarter. State Street Corp now owns 32,092,627 shares of the transportation company’s stock worth $3,183,268,000 after purchasing an additional 1,029,377 shares during the period. Charles Schwab Investment Management Inc. grew its stake in shares of United Parcel Service by 3.3% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 27,142,759 shares of the transportation company’s stock worth $2,692,290,000 after purchasing an additional 856,125 shares during the last quarter. Geode Capital Management LLC grew its stake in shares of United Parcel Service by 1.4% in the fourth quarter. Geode Capital Management LLC now owns 17,154,091 shares of the transportation company’s stock worth $1,703,291,000 after purchasing an additional 240,253 shares during the last quarter. Finally, Victory Capital Management Inc. increased its holdings in United Parcel Service by 72.9% during the 4th quarter. Victory Capital Management Inc. now owns 13,818,314 shares of the transportation company’s stock valued at $1,370,639,000 after purchasing an additional 5,826,824 shares during the period. Hedge funds and other institutional investors own 60.26% of the company’s stock.

United Parcel Service Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, September 3rd. Stockholders of record on Monday, August 17th will be issued a $1.64 dividend. The ex-dividend date is Monday, August 17th. This represents a $6.56 annualized dividend and a dividend yield of 6.4%. United Parcel Service’s dividend payout ratio (DPR) is currently 121.93%.

Key United Parcel Service News

Here are the key news stories impacting United Parcel Service this week:

• Positive Sentiment: Zacks Research raised longer-term earnings forecasts. The firm increased its FY2026 EPS estimate to $7.22 from $7.16, FY2027 to $7.55 from $7.37, and FY2028 to $7.69 from $7.44. It also lifted estimates for Q4 2026, Q1 and Q2 2027, and Q1 and Q2 2028. The revisions suggest improving expectations for UPS’s earnings trajectory beyond the immediate quarter.
• Positive Sentiment: UPS is expanding automation in customs processing. The company reportedly uses AI agents to handle about 90% of daily customs clearances, potentially reducing border delays, labor requirements and processing costs. UPS Automates 90% of Daily Customs Clearances With AI Agents
• Neutral Sentiment: The U.S. Department of Transportation approved a route reorganization. UPS plans to transfer Hong Kong all-cargo routes from Poland and Vietnam to the Philippines. The change could improve network efficiency, although the immediate financial benefit is unclear. DOT approves UPS transfer of Hong Kong routes to Philippines
• Negative Sentiment: Near-term earnings expectations were reduced. Zacks cut its Q3 2026 EPS forecast to $1.60 from $1.82, a sizable downgrade that could pressure the stock despite the improved full-year and longer-term outlook.
• Negative Sentiment: UPS issued long-dated floating-rate senior notes. The financing provides capital but increases debt exposure and leaves the company vulnerable to higher interest costs. United Parcel issues long-dated floating rate senior notes
• Negative Sentiment: The stock recently went ex-dividend. UPS’s $1.64-per-share dividend is payable September 3, but the ex-dividend date was August 17. The resulting mechanical adjustment and continued concerns about dividend sustainability may limit near-term demand from income investors. United Parcel Service Inc’s Dividend Analysis

About United Parcel Service

United Parcel Service (NYSE: UPS) is a global package delivery and supply chain management company that provides a broad range of transportation, logistics and e-commerce services. Its core business centers on small-package delivery and last-mile distribution for business and individual customers, supported by a network of ground transportation, air cargo operations (UPS Airlines) and sorting facilities. In addition to parcel delivery, UPS offers freight transportation, contract logistics, warehousing, customs brokerage and reverse-logistics solutions designed to support domestic and international commerce.

The company traces its roots to 1907 when it began as a small messenger service in the United States and later evolved into the United Parcel Service.