UPS Q3 2026: revenue up 6.7% to $22.85 billion, guidance raised
UPS beat on adjusted earnings and raised full-year guidance across revenue, profit, EPS and free cash flow, so the quarter reads as a momentum story rather than a cleanup. The catch is that growth is coming from price per piece while U.S. package volumes fall, and Supply Chain Solutions profit halved. Read the scorecard as a margin-repair story that is working, not yet finished.
1 · Expected vs. Actual
Free preview belowGAAP diluted EPS of $1.37 missed the $1.6417 consensus, but non-GAAP adjusted EPS of $1.69 beat it by about $0.05. The $0.32 gap between the two is mostly a $182 million goodwill impairment in Supply Chain Solutions plus $130 million of after-tax transformation costs. Adjusted EPS still fell from $1.74 a year earlier, a quarter that included a $0.30 gain from a sale-leaseback.
Revenue came in at $22.853 billion, up 6.7% from $21.415 billion in the same quarter last year, and every segment grew. Supply Chain Solutions was the fastest at $2.981 billion, up 18.2%, while U.S. Domestic added 4.5% to $14.865 billion on a 6.1% increase in revenue per piece. That domestic gain came with fewer packages: average daily U.S. volume fell to 15.621 million pieces from 16.150 million.
Management lifted full-year revenue guidance to about $92.6 billion from $91.2 billion, and now points to roughly $8.75 billion of adjusted operating profit and $7.28 of adjusted EPS. The fourth quarter is guided to about $25.7 billion of revenue and about $3.3 billion of adjusted operating profit. The adjusted free cash flow target rose to about $6.1 billion, against around $5.4 billion of planned dividend payments and $3.0 billion of capital spending.
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Figures on this page come from the company's original SEC filings. The analysis is generated automatically and checked against validation rules, but may still contain errors or omissions. Not investment advice. · Generated 2026-11-05
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