UPS raises 2026 outlook as revenue grows 6.7% across all segments

UPS raised its full-year 2026 outlook after third-quarter revenue grew 6.7% to $22.9 billion with gains in every segment, as CEO Carol Tomé said the company enters the holiday season "from a position of strength."

Diluted EPS was $1.37, and adjusted diluted EPS was $1.69, according to the earnings release attached to its 8-K on Tuesday. GAAP results included a net charge of $279 million, or $0.32 per share, made up of $130 million of after-tax transformation costs and a $182 million goodwill impairment in Supply Chain Solutions, partly offset by a $33 million gain on the sale of MD-11 assets.

Consolidated operating margin was 7.6%, or 9.0% on an adjusted basis.

Segments

U.S. Domestic revenue rose 4.5% to $14.865 billion on a 6.1% increase in revenue per piece, with an adjusted operating margin of 7.0%. International revenue grew 7.1% to $5.007 billion on a 15.0% rise in revenue per piece, and its operating margin was 14.9%. Supply Chain Solutions revenue jumped 18.2% to $2.981 billion, driven by forwarding and logistics, including healthcare.

Tomé said results reflected "premium growth and greater network efficiency," and that UPS now has "the most automated and efficient network in our history."

Outlook raised

UPS raised its fourth-quarter guidance and now expects full-year 2026 consolidated revenue of about $92.6 billion, adjusted operating profit of about $8.75 billion and adjusted diluted EPS of about $7.28. It also raised its adjusted free cash flow target to about $6.1 billion.

By the numbers

• Q3 revenue: $22.9 billion, up 6.7%
• Adjusted EPS: $1.69
• Adjusted operating margin: 9.0%
• 2026 adjusted EPS outlook: about $7.28
• Adjusted free cash flow target: about $6.1 billion

Sources

1. UNITED PARCEL SERVICE INC, Form 8-K with third quarter 2026 earnings release, filed Oct. 27, 2026 (accession 0001628280-26-067381)

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