Key takeaways
- Third-quarter revenue rose 6.7% to $22.9 billion, while adjusted earnings of $1.69 per share exceeded Wall Street estimates
- Shares gained approximately 1.8% in early premarket trading after the earnings beat
- The company increased its full-year revenue guidance to $92.6 billion
UPS reported stronger-than-expected third-quarter earnings on Tuesday, which sent its shares higher in premarket trading. The delivery giant also raised its full-year revenue and profit forecasts ahead of the holiday shopping season.
The company reported revenue of $22.9 billion for the quarter, which is a 6.7% increase from the previous year and exceeding Wall Street's expectations of approximately $22.3 billion.
UPS Q3 2026 earnings highlights
Adjusted earnings per share (EPS) reached $1.69, beating analysts' forecasts of approximately $1.62 to $1.63. However, adjusted EPS declined from $1.74 during the same period last year.
UPS also reported adjusted operating profit of $2.1 billion, while its adjusted operating margin stood at 9%, down from 10% a year earlier.
UPS Raises Full-Year Revenue and Profit Forecasts
One of the biggest developments from the earnings announcement was UPS's decision to raise its financial guidance for the remainder of 2026. The company now expects full-year revenue of approximately $92.6 billion, up from its previous forecast of $91.2 billion.
UPS also increased its adjusted earnings forecast to approximately $7.28 per share and expects adjusted operating profit of around $8.75 billion. For the fourth quarter, management projected revenue of approximately $25.7 billion and adjusted operating profit of $3.3 billion.
UPS Stock Rises Following Earnings Announcement
UPS shares climbed approximately 1.8% in early premarket trading on Tuesday, and reached around $102.11 after closing Monday's session at $100.32.
The initial gains followed a challenging year for the delivery company, whose stock is still well below its February 2026 high of $122.41.
Despite the positive earnings surprise, investors are still weighing the company's ability to improve profitability while facing elevated fuel costs, economic uncertainty and intense competition.
Amazon Delivery Cuts and Cost Savings Still a Focus
UPS has been restructuring its operations after deliberately reducing lower-margin deliveries for Amazon, one of its largest customers. The company completed its planned Amazon volume reductions during the second quarter, which allowed it to concentrate on more profitable shipments and improve network efficiency.
UPS generated approximately $1.8 billion in benefits from its restructuring initiatives during the first nine months of 2026 and expects nearly $3 billion in benefits for the full year.
Meanwhile, revenue increased across all three major business segments during the third quarter, including 4.5% growth in US domestic operations and 7.1% growth internationally.
With the holiday shipping season approaching, investors will be watching whether UPS can translate its higher revenue forecasts and cost reductions into stronger profit margins.
