United Parcel Service (NYSE:UPS) Announces Earnings Results, Beats Estimates By $0.07 EPS

United Parcel Service (NYSE:UPS) released its quarterly earnings results on Tuesday. The transportation company reported $1.69 EPS for the quarter, topping analysts’ consensus estimates of $1.62 by $0.07, Zacks reports. United Parcel Service had a net margin of 5.08% and a return on equity of 37.50%. During the same quarter last year, the business earned $1.74 EPS. The company’s revenue was up 6.9% compared to the same quarter last year.

Here are the key takeaways from United Parcel Service’s conference call:

• Positive Sentiment: UPS reported strong third-quarter results, with revenue up 6.7% to $22.9 billion and consolidated operating profit of $2.1 billion. U.S. Domestic operating profit rose 14.3%, while its operating margin expanded 60 basis points to 7%.
• Positive Sentiment: Management raised its 2026 outlook to approximately $92.6 billion in revenue, $8.75 billion in operating profit, and $7.28 in diluted EPS. Fourth-quarter revenue is expected to reach $25.7 billion, with operating profit of about $3.3 billion.
• Neutral Sentiment: Core U.S. volume from SMB and enterprise customers grew nearly 2%, but total U.S. average daily volume declined 3.3% because of the deliberate reduction in Amazon volume. Management expects this Amazon-related pressure to continue affecting year-over-year volume comparisons through the second half of 2027.
• Positive Sentiment: UPS said structural cost and productivity initiatives are driving durable margin improvement, including network reconfiguration, the completed Driver Choice Program, automation, and RFID technology. Management expects revenue per piece to continue outpacing cost per piece and said margins should improve steadily each year.
• Positive Sentiment: International operating profit returned to year-over-year growth for the first time in six quarters, while Supply Chain Solutions revenue increased 18% year-over-year, supported by forwarding, healthcare logistics, and high-tech demand. UPS also raised its 2026 free-cash-flow outlook to approximately $6.1 billion and said its dividend remains secure.

United Parcel Service Trading Up 5.2%

Shares of NYSE:UPS traded up $5.25 during mid-day trading on Tuesday, hitting $105.57. The company had a trading volume of 6,711,768 shares, compared to its average volume of 5,601,469. The firm has a fifty day moving average price of $98.92 and a 200 day moving average price of $104.66. The company has a market capitalization of $89.82 billion, a PE ratio of 19.62, a price-to-earnings-growth ratio of 1.86 and a beta of 1.07. The company has a debt-to-equity ratio of 1.58, a current ratio of 1.18 and a quick ratio of 1.18. United Parcel Service has a one year low of $90.84 and a one year high of $122.41.

United Parcel Service Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Thursday, September 3rd. Stockholders of record on Monday, August 17th were paid a $1.64 dividend. The ex-dividend date was Monday, August 17th. This represents a $6.56 annualized dividend and a dividend yield of 6.2%. United Parcel Service’s payout ratio is currently 121.93%.

Key United Parcel Service News

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

• Positive Sentiment: Q3 beat and higher guidance: UPS reported adjusted earnings of $1.69 per share, above the $1.62–$1.63 analyst consensus, while revenue rose 6.9% year over year to $22.9 billion. The company raised its full-year adjusted EPS forecast to $7.28 from $7.22, ahead of the $7.19 analyst expectation. UPS beats quarterly expectations, raises full-year guidance again
• Positive Sentiment: Higher-margin mix is supporting profitability: UPS is reducing lower-margin deliveries for Amazon while emphasizing better-paying international air shipments and other premium parcels. Management said the company expects to earn more from slightly fewer holiday deliveries, reinforcing the case that shipment quality is currently more important than volume growth. UPS raises annual forecasts as higher-paying shipments boost margin
• Positive Sentiment: Holiday and longer-term growth opportunities: UPS raised its sales outlook, with next-quarter revenue guidance reportedly at a $25.7 billion midpoint, above consensus. The CEO also identified a potential $15 billion data-center logistics market, offering an additional growth avenue beyond traditional parcel delivery. UPS Raises Sales Outlook in Sign of Strength for Holiday Season
• Positive Sentiment: Additional pricing and financial items: UPS plans a 5.9% average rate increase beginning December 21, which could help offset costs, and recovered $50.7 million mistakenly paid into a pension plan. UPS plans 5.9% rate increase on Dec. 21
• Neutral Sentiment: CEO Carol Tomé plans to remain in place to oversee upcoming labor negotiations, providing continuity but highlighting a potential execution issue for investors.
• Negative Sentiment: Adjusted EPS declined from $1.74 a year earlier, and reducing Amazon volume could pressure revenue and package density if higher-margin shipments do not fully replace lost volume.

Analysts Set New Price Targets

A number of equities research analysts have issued reports on the stock. Citizens Jmp assumed coverage on shares of United Parcel Service in a research note on Wednesday, July 15th. They set a “market perform” rating on the stock. Wall Street Zen downgraded shares of United Parcel Service from a “buy” rating to a “hold” rating in a research note on Saturday, September 19th. BNP Paribas Exane reduced their price target on shares of United Parcel Service from $90.00 to $85.00 and set an “underperform” rating on the stock in a research note on Wednesday, September 30th. Evercore lifted their target price on shares of United Parcel Service from $117.00 to $118.00 in a research report on Wednesday, July 29th. Finally, Sanford C. Bernstein cut their target price on shares of United Parcel Service from $131.00 to $127.00 and set an “outperform” rating on the stock in a research report on Wednesday, October 21st. One equities research analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating, eleven have issued a Hold rating and three have given a Sell rating to the company. According to data from MarketBeat, the stock presently has an average rating of “Hold” and an average price target of $115.70.

About United Parcel Service

United Parcel Service, Inc (NYSE: UPS) is a global package delivery and logistics company. Its services include the transportation and delivery of packages and freight, time-definite express delivery, supply chain management, customs brokerage, and logistics consulting. UPS serves businesses and consumers through ground, air, and international delivery networks.

The company operates across the United States and in international markets throughout Europe, Asia-Pacific, Latin America, Canada, and other regions.