UPS Beats Third Quarter Profit Estimates and Raises Annual Forecasts

UPS reported third quarter results on Tuesday, October 27, 2026, with adjusted profit ahead of analyst expectations and revenue growth of 6.7 percent from a year earlier. The company also raised its forecasts for the full year 2026, lifting its revenue and profit targets above the projections it gave in July.

Profit and revenue

UPS posted adjusted profit of 1.69 dollars per share for the third quarter. That figure was above the 1.63 dollars analysts had expected, although it was below the 1.74 dollars recorded a year earlier. Consolidated revenue reached 22.9 billion dollars, up 6.7 percent from the third quarter of 2025.

Operating profit for the quarter was 1.744 billion dollars, at an operating margin of 7.6 percent. Adjusted operating profit was 2.054 billion dollars. Net income was 1.163 billion dollars, compared with 1.311 billion dollars a year earlier, and diluted earnings per share were 1.37 dollars.

A higher outlook for 2026

UPS now expects revenue of about 92.6 billion dollars for 2026. The company also put adjusted operating profit at about 8.75 billion dollars, adjusted diluted earnings per share at 7.28 dollars, and adjusted free cash flow at about 6.1 billion dollars.

The new profit target compares with a forecast of 7.22 dollars per share given in July. The new revenue target compares with a previous projection of 91.2 billion dollars. The raised outlook followed a quarter in which higher margin parcels helped lift results, according to Reuters reporting on the release.

Shares of UPS climbed 1.2 percent in premarket trading after the results. Shares of FedEx, a rival parcel carrier, were up 0.8 percent in the same trading.

Margins by segment

The adjusted operating margin in the US Domestic Package unit rose to 7 percent, from 6.4 percent. The International Package division reported an adjusted operating margin of 14.9 percent, compared with 14.8 percent last year.

US Domestic remains the largest part of the business. The unit generates 60 percent of UPS revenue, so its margin gain carries weight for the full company result. The international margin held close to last year level, with a small increase of 0.1 percentage point.

Cost savings and network changes

UPS said it is on track to meet its target of 3 billion dollars in cost savings this year. The company has been shutting facilities and cutting thousands of jobs as it scales back deliveries for Amazon.com, its largest customer.

That program sits behind the improved outlook. Lower costs and a stronger margin in the domestic unit helped the company lift its annual targets even as adjusted profit per share remained below the level of a year earlier. Revenue growth of 6.7 percent in the quarter also supported the higher full year revenue figure. For investors, the update paired a profit beat with a higher set of annual targets, and the early market reaction was positive for both UPS and FedEx shares in premarket trading on Tuesday morning.