UPS Raises 2026 Outlook Amid Better-Than-Expected Q3 Report — Here’s What Investors Need To Know

UPS reported adjusted EPS of $1.69 on consolidated revenue of $22.9 billion, beating analyst estimates of $1.62 per share and $22.27 billion, respectively.

• The company raised its full-year revenue outlook to approximately $92.6 billion, adjusted operating profit target to $8.75 billion, and adjusted EPS outlook to $7.28.
• Revenue increased across all three segments, but Supply Chain Solutions' adjusted operating profit fell to $274 million from $536 million a year earlier.
• UPS maintained its full-year capital expenditure outlook at about $3 billion and expects dividend payments of around $5.4 billion, subject to board approval.

UPS, on Tuesday, reported better-than-expected third-quarter results and raised its full-year 2026 financial outlook.

CEO Carol Tomé said that the firm is entering the holiday shipping season from a position of strength, “with the most automated and efficient network in our history.” 

The company reported adjusted earnings per share (EPS) of $1.69 on consolidated revenue of $22.9 billion, beating analyst expectations of $1.62 per share on revenue of $22.27 billion, according to Fiscal AI.

UPS stock traded 2.3% lower in premarket trading.

UPS Raises Full-Year 2026 Outlook

The company raised its full-year 2026 consolidated revenue outlook to approximately $92.6 billion, up from $91.2 billion previously. The company also increased its adjusted operating profit target to $8.75 billion from $8.65 billion and its adjusted diluted EPS outlook to $7.28 from $7.22.

UPS also raised its adjusted free cash flow target to approximately $6.1 billion. For the fourth quarter, the company expects consolidated revenue of approximately $25.7 billion and adjusted operating profit of about $3.3 billion.

UPS also reaffirmed its full-year capital expenditure expectation of approximately $3 billion and dividend payments of around $5.4 billion, subject to board approval.

UPS’ Segment Performance

U.S. Domestic revenue increased 4.5% year-over-year to $14.87 billion, driven by a 6.1% increase in revenue per piece. Adjusted operating profit rose to $1.03 billion from $905 million in the year-ago quarter.

International revenue grew 7.1% to $5.01 billion, supported by a 15.0% increase in revenue per piece. Adjusted operating profit increased to $746 million from $691 million a year earlier.

Supply Chain Solutions revenue climbed 18.2% to $2.98 billion, primarily due to growth in forwarding and logistics, including healthcare. However, adjusted operating profit declined to $274 million from $536 million in the prior-year quarter.

How Retail Views UPS

On Stocktwits, sentiment for UPS remained in ‘bearish’ territory amid ‘high’ message volumes in the past 24 hours. The stock was one of the trending tickers on the platform at the time of writing.

UPS shares have dropped marginally year-to-date.

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