UPS reports revenue growth as supply chain business expands

UPS reported a 6.7% increase in consolidated revenue to $22.9 billion for the third quarter of 2026, supported by growth across its domestic, international and supply chain operations.

The logistics group recorded consolidated operating profit of approximately $1.7 billion, while non-GAAP adjusted operating profit reached $2.1 billion. Diluted earnings per share stood at $1.37, compared with adjusted diluted earnings per share of $1.69.

The company’s Supply Chain Solutions business generated revenue of nearly $3 billion, representing an 18.2% increase from $2.52 billion in the corresponding period of 2025. According to UPS, the increase was primarily driven by growth in forwarding and logistics activities, including healthcare logistics.

Despite the revenue increase, the segment’s reported operating profit declined to $92 million from $525 million a year earlier. Non-GAAP adjusted operating profit reached $274 million, compared with $536 million in the third quarter of 2025, resulting in an adjusted operating margin of 9.2%.

UPS also recorded a $182 million goodwill impairment charge associated with Supply Chain Solutions during the quarter.

International operations and updated financial outlook

UPS reported international segment revenue of $5 billion, an increase of 7.1% year on year, supported by a 15% rise in revenue per package. International operating profit reached $746 million, compared with $676 million in the previous year, with an operating margin of 14.9%.

In the United States, domestic revenue increased by 4.5% to approximately $14.9 billion, driven by a 6.1% improvement in revenue per package. Reported operating profit rose to $906 million from $603 million, while adjusted operating profit reached approximately $1.03 billion.

Carol Tomé, Chief Executive Officer of UPS, said the quarterly performance reflected improvements in network efficiency and the company’s business fundamentals. She also highlighted the group’s preparations for the year-end shipping season.

Following the results, UPS raised its full-year 2026 revenue forecast to approximately $92.6 billion and its non-GAAP adjusted operating profit forecast to $8.75 billion. The company also increased its adjusted diluted earnings-per-share outlook to approximately $7.28 and its adjusted free cash flow target to $6.1 billion.

For the fourth quarter, UPS expects consolidated revenue of approximately $25.7 billion and adjusted operating profit of $3.3 billion.

The group continues implementing its Network Reconfiguration and Efficiency Reimagined initiatives, which involve automation, operational consolidation and changes to its distribution network. UPS reported approximately $1.8 billion in programme benefits during the first nine months of 2026 and expects nearly $3 billion in benefits for the full year.

The company also maintains a capital expenditure forecast of approximately $3 billion for 2026 as it continues investments across its operations.