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

United Parcel Service (NYSE:UPS) posted its quarterly earnings results on Tuesday. The transportation company reported $1.69 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.62 by $0.07, Zacks reports. United Parcel Service had a net margin of 5.08% and a return on equity of 37.50%. The firm’s revenue for the quarter was up 6.9% on a year-over-year basis. During the same period last year, the business posted $1.74 EPS.

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 Price Performance

Shares of UPS traded up $2.44 during mid-day trading on Tuesday, reaching $102.76. The company had a trading volume of 1,354,602 shares, compared to its average volume of 5,576,809. United Parcel Service has a twelve month low of $90.84 and a twelve month high of $122.41. The company has a debt-to-equity ratio of 1.58, a current ratio of 1.18 and a quick ratio of 1.18. The company’s 50-day moving average is $98.92 and its 200-day moving average is $104.66. The company has a market capitalization of $87.42 billion, a P/E ratio of 19.12, a P/E/G ratio of 1.86 and a beta of 1.07.

United Parcel Service Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Thursday, September 3rd. Stockholders of record on Monday, August 17th were paid a $1.64 dividend. This represents a $6.56 annualized dividend and a dividend yield of 6.4%. The ex-dividend date was Monday, August 17th. United Parcel Service’s dividend payout ratio is currently 121.93%.

Key United Parcel Service News

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

• Positive Sentiment: UPS reported third-quarter revenue of $22.9 billion, up 6.9% year over year and above analysts’ expectations of $22.3 billion. Adjusted earnings were $1.69 per share, exceeding consensus estimates near $1.62–$1.63. UPS Earnings Deliver Good News for the U.S. Economy
• Positive Sentiment: The company raised its full-year adjusted earnings forecast to $7.28 per share from $7.22, slightly above the $7.19 analyst consensus, marking the second consecutive guidance increase. It also lifted its revenue outlook. UPS beats quarterly expectations, raises full-year guidance again
• Positive Sentiment: Higher-margin international air shipments helped profitability, while a better-than-expected fourth-quarter revenue outlook of approximately $25.7 billion points to resilient holiday-season demand. UPS raises annual forecasts as higher-paying shipments boost margin
• Positive Sentiment: UPS plans an average 5.9% rate increase beginning December 21 and has added a feature for TikTok Shop ahead of the holidays, potentially supporting pricing and e-commerce volumes. UPS plans 5.9% rate increase on Dec. 21
• Neutral Sentiment: Reported diluted GAAP EPS was $1.37, while adjusted EPS was $1.69; investors will likely focus on whether the margin improvement can continue as UPS reshapes its package mix.
• Negative Sentiment: Adjusted EPS declined from $1.74 a year earlier, and UPS is intentionally reducing millions of lower-margin deliveries for Amazon. That may pressure volumes even as it improves profitability per package. UPS Raises Outlook as Revenue Climbs
• Negative Sentiment: A recent comparison with FedEx highlighted concerns that UPS’s dividend consumes a relatively high portion of its cash flow, which could limit flexibility for shareholder returns and investment.

Wall Street Analysts Forecast Growth

A number of research firms recently weighed in on UPS. Raymond James Financial lifted their target price on United Parcel Service from $127.00 to $131.00 and gave the stock a “strong-buy” rating in a research report on Wednesday, July 29th. JPMorgan Chase & Co. decreased their price objective on United Parcel Service from $118.00 to $115.00 and set a “neutral” rating on the stock in a report on Wednesday, July 29th. Bank of America lowered their price objective on United Parcel Service from $115.00 to $108.00 and set a “neutral” rating on the stock in a research report on Monday, September 21st. UBS Group upped their target price on United Parcel Service from $123.00 to $124.00 and gave the company a “buy” rating in a research note on Wednesday, July 29th. Finally, BMO Capital Markets raised their target price on United Parcel Service from $110.00 to $115.00 and gave the stock a “market perform” rating in a research report on Wednesday, July 29th. 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 three have given a Sell rating to the company’s stock. According to MarketBeat, the stock presently has an average rating of “Hold” and a consensus target price of $115.70.

United Parcel Service Company Profile

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.