UPS reports higher quarterly revenue and raises full-year outlook
UPS reported a 6.7% increase in consolidated revenue to $22.9 billion in the third quarter of 2026, supported by growth across its domestic, international and supply chain operations. The US-based logistics company also raised its financial guidance for the fourth quarter and the full year, citing stronger business performance and improved network efficiency.
Consolidated operating profit reached $1.7 billion, representing an operating margin of 7.6%, while non-GAAP adjusted operating profit amounted to $2.1 billion, with an adjusted margin of 9.0%. Diluted earnings per share stood at $1.37, compared with adjusted diluted earnings per share of $1.69.
The reported results included a net charge of $279 million, equivalent to $0.32 per diluted share. This reflected transformation-related costs and a goodwill impairment in Supply Chain Solutions, partially offset by a gain from the sale of MD-11 assets.
Carol Tomé, Chief Executive Officer of UPS, attributed the quarterly performance to premium growth and greater network efficiency. She also highlighted the company’s preparations for the holiday shipping season and the continued development of its automated logistics network.
Revenue growth across operating segments
UPS’s US Domestic segment generated revenue of $14.87 billion, an increase of 4.5% from the corresponding quarter of 2025. The improvement was driven by a 6.1% increase in revenue per piece, while operating profit rose to $906 million from $603 million a year earlier. The segment recorded an operating margin of 6.1%, or 7.0% on a non-GAAP adjusted basis.
International operations reported revenue of $5.01 billion, up 7.1% year on year, supported by a 15.0% increase in revenue per piece. Operating profit increased to $746 million from $676 million, with an operating margin of 14.9% on both a reported and adjusted basis.
Supply Chain Solutions recorded the strongest revenue growth among the company’s three segments, with revenue rising 18.2% to $2.98 billion. According to UPS, the increase was primarily driven by forwarding and logistics activities, including healthcare services.
However, the segment’s operating profit declined to $92 million from $525 million in the third quarter of 2025. Adjusted operating profit also decreased to $274 million from $536 million, while the adjusted operating margin stood at 9.2%.
The year-earlier comparison included a $330 million pre-tax gain from a sale-leaseback transaction within Supply Chain Solutions, which contributed $0.30 to diluted earnings per share in the third quarter of 2025.
UPS raises financial guidance for 2026
Following the quarterly results, UPS increased its fourth-quarter revenue forecast to approximately $25.7 billion and its non-GAAP adjusted operating profit guidance to around $3.3 billion.
For the full year, the company now expects consolidated revenue of approximately $92.6 billion, alongside non-GAAP adjusted operating profit of $8.75 billion. Its updated outlook also includes adjusted diluted earnings per share of approximately $7.28 and adjusted free cash flow of around $6.1 billion.
UPS maintained its capital expenditure forecast at approximately $3.0 billion and expects dividend payments of around $5.4 billion, subject to board approval. The company also confirmed an anticipated effective tax rate of approximately 23% and pension contributions of $1.3 billion.
The revised guidance reflects management’s expectations for the remainder of the year and is based partly on non-GAAP adjusted measures. Actual results may differ depending on operating conditions and other factors affecting the company’s financial performance.
