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

United Parcel Service (NYSE:UPS) issued its quarterly earnings data 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 period last year, the company posted $1.74 EPS. United Parcel Service’s revenue for the quarter was up 6.9% on a year-over-year basis.

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 Price Performance

UPS stock traded up $2.32 during mid-day trading on Tuesday, hitting $102.64. 1,354,602 shares of the stock were exchanged, compared to its average volume of 5,576,809. 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 12 month low of $90.84 and a 12 month high of $122.41. The stock has a market capitalization of $87.32 billion, a price-to-earnings ratio of 19.12, a PEG ratio of 1.86 and a beta of 1.07. The business has a fifty day moving average price of $98.92 and a 200 day moving average price of $104.66.

United Parcel Service Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, September 3rd. Stockholders of record on Monday, August 17th were issued a dividend of $1.64 per share. The ex-dividend date of this dividend was Monday, August 17th. This represents a $6.56 annualized dividend and a dividend yield of 6.4%. United Parcel Service’s payout ratio is presently 121.93%.

More United Parcel Service News

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

• Positive Sentiment: UPS reported third-quarter revenue of $22.9 billion, up 6.9% year over year and above analysts’ expectations of $22.3 billion. Adjusted earnings were $1.69 per share, exceeding consensus estimates near $1.62–$1.63. UPS Earnings Deliver Good News for the U.S. Economy
• Positive Sentiment: The company raised its full-year adjusted earnings forecast to $7.28 per share from $7.22, slightly above the $7.19 analyst consensus, marking the second consecutive guidance increase. It also lifted its revenue outlook. UPS beats quarterly expectations, raises full-year guidance again
• Positive Sentiment: Higher-margin international air shipments helped profitability, while a better-than-expected fourth-quarter revenue outlook of approximately $25.7 billion points to resilient holiday-season demand. UPS raises annual forecasts as higher-paying shipments boost margin
• Positive Sentiment: UPS plans an average 5.9% rate increase beginning December 21 and has added a feature for TikTok Shop ahead of the holidays, potentially supporting pricing and e-commerce volumes. UPS plans 5.9% rate increase on Dec. 21
• Neutral Sentiment: Reported diluted GAAP EPS was $1.37, while adjusted EPS was $1.69; investors will likely focus on whether the margin improvement can continue as UPS reshapes its package mix.
• Negative Sentiment: Adjusted EPS declined from $1.74 a year earlier, and UPS is intentionally reducing millions of lower-margin deliveries for Amazon. That may pressure volumes even as it improves profitability per package. UPS Raises Outlook as Revenue Climbs
• Negative Sentiment: A recent comparison with FedEx highlighted concerns that UPS’s dividend consumes a relatively high portion of its cash flow, which could limit flexibility for shareholder returns and investment.

Wall Street Analyst Weigh In

Several research analysts recently weighed in on UPS shares. Bank of America dropped their price target on United Parcel Service from $115.00 to $108.00 and set a “neutral” rating on the stock in a research report on Monday, September 21st. Citigroup decreased their price target on United Parcel Service from $132.00 to $122.00 and set a “buy” rating on the stock in a research report on Wednesday, October 7th. Raymond James Financial upped their target price on shares of United Parcel Service from $127.00 to $131.00 and gave the company a “strong-buy” rating in a research note on Wednesday, July 29th. Evercore lifted their target price on United Parcel Service from $117.00 to $118.00 in a research report on Wednesday, July 29th. Finally, Sanford C. Bernstein lowered their target price on United Parcel Service from $131.00 to $127.00 and set an “outperform” rating on the stock in a research note on Wednesday, October 21st. One 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 company has an average rating of “Hold” and a consensus 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.