UPS Q3 2026 earnings: revenue and profit beat as guidance rises again
UPS beat profit and revenue estimates for Q3 2026 and raised its full-year guidance for the second time this year.
| Q3 2026 | Reported | Expected | Surprise |
|---|---|---|---|
| EPS | $1.69 | $1.64 | +2.9% |
| Revenue | $22.85B | $22.51B | +1.5% |
Key takeaways
- Adjusted profit and revenue both came in above Wall Street’s estimates for the quarter, continuing a stretch of upside surprises as UPS’s cost-cutting and network-efficiency push shows up in results.
- Revenue grew 6.7% from a year earlier, with every one of UPS’s segments (U.S. domestic package, international package, and supply chain) contributing growth — a broader-based pickup than in recent quarters.
- GAAP (as-reported) earnings per share of $1.37 were lower than the $1.69 adjusted figure because of a $279 million net charge, mainly a $182 million write-down of goodwill in the Supply Chain Solutions business plus $130 million in costs tied to UPS’s ongoing restructuring, partly offset by a gain on selling off MD-11 cargo planes.
- Trailing-twelve-month operating and net profit margins remain thinner than UPS posted a couple of years ago, but the adjusted operating profit UPS generated this quarter works out to roughly 9% of revenue — above that trailing-year average — pointing to improving profitability as cost cuts and automation investments take hold.
- Revenue had been essentially flat to slightly down over the trailing twelve months before this report, so this quarter’s 6.7% growth marks a notable acceleration rather than a continuation of the recent trend.
- UPS raised its full-year 2026 outlook for the second time this year, now targeting about $92.6 billion in revenue, about $8.75 billion in adjusted operating profit, about $7.28 in adjusted earnings per share, and about $6.1 billion in adjusted free cash flow — cash left over after running the business and funding capital spending, which supports dividends and debt paydown.
- CEO Carol Tomé said the quarter reflected strengthening business fundamentals driven by premium (higher-margin) volume growth and greater network efficiency, and that UPS is entering the holiday shipping season with its most automated network in company history.
- Coverage of the report framed it as UPS’s results surging past estimates, with the company’s cost discipline and efficiency gains highlighted as the key story behind the beat.
How the stock took it
United Parcel Service Inc closed at $100.32 on Oct 26, 2026, the last session before the report, and at $105.62 on Oct 28, 2026, the first session after it — +5.3% across the report.
Closes from the market's daily record. Each figure spans the report date — from the last session that closed before it to the first that closed after — because a company may report before the open or after the close.
Fundamentals
| Metric | Value | Period |
|---|---|---|
| Gross margin | 81.9% | Trailing 12 months |
| Operating margin | 7.3% | Trailing 12 months |
| Net profit margin | 5.1% | Trailing 12 months |
| Pretax margin | 6.5% | Trailing 12 months |
| EPS | $5.37 | Trailing 12 months |
| Revenue growth (YoY) | -0.4% | Trailing 12 months |
| EPS growth (YoY) | -20.1% | Trailing 12 months |
| Return on equity | 29.1% | Trailing 12 months |
Sources: company report · earnings call · FreightWaves