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

United Parcel Service (NYSE:UPS) posted its quarterly earnings results on Tuesday. The transportation company reported $1.69 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.62 by $0.07, Zacks reports. The firm had revenue of $22.90 billion for the quarter, compared to the consensus estimate of $22.27 billion. United Parcel Service’s quarterly revenue was up 6.9% compared to the same quarter last year. During the same period in the previous year, the company posted $1.74 EPS.

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 Stock Performance

NYSE UPS opened at $106.43 on Wednesday. The stock’s 50 day simple moving average is $98.92 and its 200-day simple moving average is $104.64. United Parcel Service has a 1-year low of $90.84 and a 1-year high of $122.41.

United Parcel Service Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Thursday, September 3rd. Stockholders of record on Monday, August 17th were given a $1.64 dividend. This represents a $6.56 annualized dividend and a dividend yield of 6.2%. The ex-dividend date was Monday, August 17th.

Analyst Ratings Changes

Several equities analysts recently issued reports on UPS shares. Raymond James Financial lifted their price objective on shares of United Parcel Service from $127.00 to $131.00 and gave the company a “strong-buy” rating in a report on Wednesday, July 29th. Sanford C. Bernstein decreased their price objective on shares of United Parcel Service from $131.00 to $127.00 and set an “outperform” rating for the company in a research report on Wednesday, October 21st. Citizens Jmp started coverage on United Parcel Service in a research note on Wednesday, July 15th. They set a “market perform” rating on the stock. UBS Group upped their price objective on shares of United Parcel Service from $123.00 to $124.00 and gave the company a “buy” rating in a report on Wednesday, July 29th. Finally, JPMorgan Chase & Co. dropped their target price on United Parcel Service from $118.00 to $115.00 and set a “neutral” rating on the stock in a report on Wednesday, July 29th. One equities research analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating, twelve have issued a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat.com, United Parcel Service has a consensus rating of “Hold” and a consensus price target of $116.43.

Key Stories Impacting United Parcel Service

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

• Positive Sentiment: UPS reported third-quarter adjusted earnings of $1.69 per share, ahead of the approximately $1.62–$1.63 consensus, while revenue rose 6.9% year over year to $22.9 billion, above expectations. UPS beats quarterly expectations, raises full-year guidance again
• Positive Sentiment: Management raised its 2026 outlook, including an adjusted earnings forecast of roughly $7.28 per share and projected revenue of about $92.6 billion. The company also increased its operating-profit outlook to approximately $8.75 billion. UPS Raises Outlook as Revenue Climbs
• Positive Sentiment: Higher-margin international air shipments, improved pricing and stronger forwarding and logistics demand helped profitability. UPS said forwarding and logistics grew 17%, supported by health-care shipments and data-center construction, an opportunity management estimates at $15 billion. UPS raises annual forecasts as higher-paying shipments boost margin
• Positive Sentiment: CEO Carol Tomé expects stronger holiday profitability despite slightly lower delivery volumes, reflecting UPS’s continued reduction of lower-margin Amazon shipments. Management also cited solid holiday demand and plans a 5.9% rate increase in December. UPS Stock On Track For Best Week Since May
• Neutral Sentiment: The stock moved back above its 200-day moving average, improving technical momentum, although it remains below its 52-week high and analysts continue to monitor long-term valuation and cash-flow growth. UPS Stock Price Breaks Above 200-Day Moving Average
• Negative Sentiment: Reported diluted EPS was $1.37, below the prior-year figure, and UPS recorded goodwill and asset-impairment charges. Lower volumes and ongoing margin pressure remain risks if the shift toward premium shipments does not continue.

United Parcel Service Company Profile

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.