UPS (NYSE:UPS) today announced third-quarter 2026 consolidated revenue of $22.9 billion. Consolidated operating profit was $1.7 billion; non-GAAP adjusted consolidated operating profit was $2.1 billion. Diluted earnings per share were $1.37; non-GAAP adjusted diluted earnings per share were $1.69^†.

For the third quarter of 2026, GAAP results include a net charge of $279 million, or $0.32 per diluted share, comprised of after-tax transformation strategy costs of $130 million, as well as a $182 million charge associated with a goodwill impairment in Supply Chain Solutions, partially offset by a gain on sale of MD-11 assets of $33 million.

“I want to thank all UPSers for their unwavering commitment to our customers and for delivering another quarter of strong performance,” said Carol Tomé, UPS chief executive officer. “Our third-quarter results demonstrate the continued strengthening of our business fundamentals, driven by premium growth and greater network efficiency. As momentum builds, we are entering the holiday shipping season from a position of strength, with the most automated and efficient network in our history. Given the strength we see in the business, we are raising our full-year financial guidance.”

U.S. Domestic Segment

• Revenue increased 4.5%, driven by a 6.1% increase in revenue per piece.
• Operating margin was 6.1%; non-GAAP adjusted operating margin was 7.0%.

International Segment

• Revenue increased 7.1%, driven by a 15.0% increase in revenue per piece.
• Operating margin on both a GAAP and non-GAAP adjusted basis was 14.9%.

Supply Chain Solutions¹

¹ Consists of operating segments that do not meet the criteria of a reportable segment under ASC Topic 280 – Segment Reporting.

• Revenue increased 18.2%, primarily due to growth in forwarding and logistics, including healthcare.
• perating margin was 3.1%; non-GAAP adjusted operating margin was 9.2%.

2026 Outlook

The company provides certain guidance on a non-GAAP adjusted basis because it is not possible to predict or provide a reconciliation reflecting the impact of various potential future events, including the impact of pension adjustments, certain strategic initiatives or other unanticipated events, which would be included in reported (GAAP) results and could be material.

UPS is raising its fourth-quarter and full-year 2026 financial guidance. For the fourth quarter of 2026, on a consolidated basis, UPS expects revenue to be approximately $25.7 billion and non-GAAP adjusted operating profit of approximately $3.3 billion. For the full year 2026, the company now expects consolidated revenue of approximately $92.6 billion, non-GAAP adjusted operating profit of approximately $8.75 billion, non-GAAP adjusted diluted EPS of approximately $7.28, and non-GAAP adjusted free cash flow of approximately $6.1B.

The company confirms the following for the full year 2026:

• Capital expenditures of approximately $3.0 billion
• Dividend payments of around $5.4 billion, subject to board approval
• Effective tax rate of approximately 23%
• $1.3 billion in pension contributions

_{* “Non-GAAP Adjusted” or “Non-GAAP Adj.” amounts are non-GAAP adjusted financial measures. See the appendix to this release for a discussion of non-GAAP adjusted financial measures, including a reconciliation to the most closely correlated GAAP measure.}

^†_{3Q25 results included a $330M pre-tax gain within Supply Chain Solutions, or $0.30 of EPS, from a sale-leaseback transaction.}

Contacts:
UPS Media Relations: 404-828-7123 or [email protected]
UPS Investor Relations: 404-828-6059 (option 4) or [email protected]