United Parcel Service (NYSE:UPS) Announces Quarterly Earnings Results, Beats Expectations By $0.07 EPS

Posted by Geri Gentry on Oct 29th, 2026

United Parcel Service (NYSE:UPS – Get Free Report) released its quarterly earnings results on Tuesday. The transportation company reported $1.69 EPS for the quarter, beating analysts’ consensus estimates of $1.62 by $0.07, Zacks reports. United Parcel Service had a return on equity of 37.50% and a net margin of 5.08%. The business had revenue of $22.90 billion during the quarter, compared to analyst estimates of $22.27 billion. During the same period in the prior year, the firm posted $1.74 EPS. United Parcel Service’s quarterly revenue was up 6.9% compared to the same quarter last year.

Here are the key takeaways from United Parcel Service’s conference call:

Positive Sentiment: UPS reported strong third-quarter results, with revenue up 6.7% to $22.9 billion and consolidated operating profit of $2.1 billion. U.S. Domestic operating profit rose 14.3%, while its operating margin expanded 60 basis points to 7%.
Positive Sentiment: Management raised its 2026 outlook to approximately $92.6 billion in revenue, $8.75 billion in operating profit, and $7.28 in diluted EPS. Fourth-quarter revenue is expected to reach $25.7 billion, with operating profit of about $3.3 billion.
Neutral Sentiment: Core U.S. volume from SMB and enterprise customers grew nearly 2%, but total U.S. average daily volume declined 3.3% because of the deliberate reduction in Amazon volume. Management expects this Amazon-related pressure to continue affecting year-over-year volume comparisons through the second half of 2027.
Positive Sentiment: UPS said structural cost and productivity initiatives are driving durable margin improvement, including network reconfiguration, the completed Driver Choice Program, automation, and RFID technology. Management expects revenue per piece to continue outpacing cost per piece and said margins should improve steadily each year.
Positive Sentiment: International operating profit returned to year-over-year growth for the first time in six quarters, while Supply Chain Solutions revenue increased 18% year-over-year, supported by forwarding, healthcare logistics, and high-tech demand. UPS also raised its 2026 free-cash-flow outlook to approximately $6.1 billion and said its dividend remains secure.

United Parcel Service Stock Performance

United Parcel Service stock traded down $0.24 during midday trading on Thursday, hitting $105.38. The stock had a trading volume of 327,874 shares, compared to its average volume of 5,598,401. United Parcel Service has a 52-week low of $90.84 and a 52-week high of $122.41. The company has a market capitalization of $89.65 billion, a PE ratio of 19.66, a P/E/G ratio of 1.86 and a beta of 1.07. The firm’s fifty day moving average is $98.99 and its two-hundred day moving average is $104.63. The company has a current ratio of 1.18, a quick ratio of 1.18 and a debt-to-equity ratio of 1.58.

United Parcel Service Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Thursday, September 3rd. Investors of record on Monday, August 17th were issued a $1.64 dividend. This represents a $6.56 annualized dividend and a yield of 6.2%. The ex-dividend date of this dividend was Monday, August 17th. United Parcel Service’s dividend payout ratio is currently 121.93%.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently weighed in on the company. Stifel Nicolaus boosted their target price on United Parcel Service from $114.00 to $115.00 and gave the stock a “buy” rating in a research note on Wednesday, July 29th. Sanford C. Bernstein dropped their price target on United Parcel Service from $131.00 to $127.00 and set an “outperform” rating on the stock in a report on Wednesday, October 21st. Barclays raised their price target on United Parcel Service from $80.00 to $95.00 and gave the stock an “underweight” rating in a research report on Wednesday. Wells Fargo & Company boosted their price objective on United Parcel Service from $110.00 to $112.00 and gave the company an “equal weight” rating in a research report on Wednesday. Finally, Truist Financial increased their price objective on United Parcel Service from $115.00 to $120.00 and gave the company a “buy” rating in a research note on Wednesday. One equities research analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating, eleven have given a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat, the company has an average rating of “Hold” and an average target price of $118.45.

Get Our Latest Analysis on UPS

More United Parcel Service News

Here are the key news stories impacting United Parcel Service this week:

Positive Sentiment: UPS reported third-quarter earnings of $1.69 per share, exceeding the $1.62 consensus estimate, while revenue rose 6.9% year over year to $22.9 billion. Free cash flow increased 53.8%, reinforcing the earnings beat. UPS Q3 Earnings Beat on Pricing, 2026 Outlook Raised
Positive Sentiment: Management raised its 2026 outlook to approximately $92.6 billion in revenue and $8.75 billion in operating profit, citing stronger margins, premium-customer growth and network efficiencies. UPS Raises 2026 Outlook
Positive Sentiment: The strategy of handling fewer lower-margin Amazon packages while prioritizing higher-value shipments is improving domestic profitability. UPS also highlighted 17% growth in forwarding and logistics, supported by health-care and data-center demand, and expects stronger holiday profits despite slightly lower volumes. UPS Amazon Shipping Strategy
Positive Sentiment: Several firms raised their price targets after the results, including Citigroup to $131, UBS to $125, Truist to $120 and Oppenheimer to $119. Analysts cited a potentially sustained earnings recovery, while rising free cash flow supports UPS’s roughly 6% dividend yield and could eventually enable share buybacks. Citigroup Raises UPS Price Target
Neutral Sentiment: Analyst sentiment is not unanimous: Wells Fargo and Bank of America maintained neutral-equivalent ratings, TD Cowen kept a hold rating, and Barclays retained an underweight rating despite lifting its target to $95. Wall Street Raises UPS Price Targets
Negative Sentiment: Domestic package volumes continue to decline, and third-quarter results included goodwill and asset-impairment charges. Higher fuel surcharges may also pressure shipping demand, limiting the benefit of stronger pricing. UPS Reports Impairment Charges

United Parcel Service Company Profile

(Get Free Report)

United Parcel Service, Inc (NYSE: UPS) is a global package delivery and logistics company. Its services include the transportation and delivery of packages and freight, time-definite express delivery, supply chain management, customs brokerage, and logistics consulting. UPS serves businesses and consumers through ground, air, and international delivery networks.

The company operates across the United States and in international markets throughout Europe, Asia-Pacific, Latin America, Canada, and other regions.