UPS reports strong Q3 2026 results

UPS reported consolidated revenue of $22.9 billion in the third quarter of 2026, with consolidated operating profit reaching $1.7 billion. Adjusted consolidated operating profit, excluding specified items, stood at $2.1 billion.

Diluted earnings per share were $1.37, while adjusted diluted earnings per share came in at $1.69.

The company's third-quarter GAAP results included net charges of $279 million, equivalent to $0.32 per diluted share. These comprised $130 million in after-tax costs related to its transformation strategy and a $182 million charge associated with a goodwill impairment in its Supply Chain Solutions business. These charges were partially offset by a $33 million gain from the sale of MD-11 assets.

Carol Tomé, UPS chief executive officer, said, “I want to thank all UPSers for their unwavering commitment to our customers and for delivering another quarter of strong performance. Our third-quarter results demonstrate the continued strengthening of our business fundamentals, driven by premium growth and greater network efficiency. As momentum builds, we are entering the holiday shipping season from a position of strength, with the most automated and efficient network in our history. Given the strength we see in the business, we are raising our full-year financial guidance.”

UPS’s U.S. domestic segment reported revenue of $14.865 billion in the third quarter of 2026, up 4.5% from $14.220 billion in the same period last year, driven by a 6.1% increase in revenue per piece. Operating profit rose to $906 million from $603 million in Q3 2025, while non-GAAP adjusted operating profit increased to $1.034 billion from $905 million. The operating margin stood at 6.1%, while the non-GAAP adjusted operating margin was 7.0%.

UPS’s International Segment financial performance for the third quarter of showcase that the revenue increased from $4.673 billion in the third quarter of 2025 to $5.007 billion in the third quarter of 2026, representing a growth of 7.1%. Operating profit also improved from $676 million to $746 million on a GAAP basis, while adjusted operating profit increased from $691 million in 2025 to $746 million in 2026. The increase in revenue was primarily driven by a 15% rise in revenue per piece.

Additionally, the operating margin for the International Segment was 14.9% on both a GAAP and non-GAAP adjusted basis, indicating stable profitability despite the increase in revenue.

UPS’s Supply Chain Solutions segment financial performance for the third quarter of 2026 states, revenue increased from $2.522 billion in Q3 2025 to $2.981 billion in Q3 2026, representing growth of 18.2%, primarily driven by growth in forwarding and logistics. However, operating profit declined significantly from $525 million in Q3 2025 to $92 million in Q3 2026 on a GAAP basis. On a non-GAAP adjusted basis, operating profit decreased from $536 million in Q3 2025 to $274 million in Q3 2026. Overall, while the segment achieved strong revenue growth, its profitability weakened considerably compared with the previous year.

Revenue grew by 18.2%, primarily driven by increased activity in forwarding and logistics, including healthcare services. However, the operating margin stood at 3.1%, while the non-GAAP adjusted operating margin was 9.2%.

For the fourth quarter of 2026, UPS anticipates consolidated revenue of approximately $25.7 billion and non-GAAP adjusted operating profit of around $3.3 billion. For the full year 2026, the company forecasts consolidated revenue of approximately $92.6 billion, non-GAAP adjusted operating profit of $8.75 billion, adjusted diluted earnings per share (EPS) of $7.28, and adjusted free cash flow of approximately $6.1 billion.