UPS Reports Q3 2026 Financial Results and Raises Full-Year Guidance

Executive Summary

On October 27, 2026, United Parcel Service, Inc. (UPS) filed a Form 8-K under Item 2.02 (Results of Operations and Financial Condition), announcing its financial results for the third quarter ended September 30, 2026, and raising its fourth-quarter and full-year 2026 guidance.

---

Key Financial Highlights (Q3 2026)

• Consolidated Revenue: $22.9 billion, an increase of 6.7% year-over-year, driven by revenue growth across all business segments.
• Operating Profit:
  • GAAP Operating Profit: $1.74 billion (Operating Margin: 7.6%)
  • Non-GAAP Adjusted Operating Profit: ~$2.1 billion (Adjusted Operating Margin: 9.0%)
• Diluted EPS:
  • GAAP Diluted EPS: $1.37
  • Non-GAAP Adjusted Diluted EPS: $1.69
• GAAP Charges: Included a net pre-tax impact consisting of after-tax transformation strategy costs of $130 million, a $182 million charge for goodwill impairment in Supply Chain Solutions, partially offset by a $33 million gain on the sale of MD-11 aircraft assets.

---

Segment Performance

1. U.S. Domestic Package:

   • Revenue: $14.865 billion (up 4.5% YoY), driven by a 6.1% increase in revenue per piece.
   • Operating Profit: $906 million GAAP / $1,034 million Non-GAAP Adj.
   • Operating Margin: 6.1% GAAP / 7.0% Non-GAAP Adj.

2. International Package:

   • Revenue: $5.007 billion (up 7.1% YoY), supported by a 15.0% increase in revenue per piece.
   • Operating Profit: $746 million GAAP / $746 million Non-GAAP Adj.
   • Operating Margin: 14.9% (both GAAP and Non-GAAP Adj.).

3. Supply Chain Solutions:

   • Revenue: $2.981 billion (up 18.2% YoY), driven by expansion in forwarding and logistics, including healthcare.
   • Operating Profit: $92 million GAAP / $274 million Non-GAAP Adj.
   • Operating Margin: 3.1% GAAP / 9.2% Non-GAAP Adj.

---

Updated Guidance & Full-Year 2026 Outlook

UPS increased its full-year 2026 targets:

• Consolidated Revenue: Raised to approximately $92.6 billion.
• Non-GAAP Adjusted Operating Profit: Raised to approximately $8.75 billion.
• Non-GAAP Adjusted Diluted EPS: Raised to approximately $7.28.
• Non-GAAP Adjusted Free Cash Flow: Raised to approximately $6.1 billion.
• Q4 2026 Expectations: Revenue of ~$25.7 billion and Non-GAAP adjusted operating profit of ~$3.3 billion.
• Capital Allocation & Other Metrics:
  • Capital expenditures: ~$3.0 billion
  • Dividend payments: ~$5.4 billion (subject to board approval)
  • Effective tax rate: ~23%
  • Pension contributions: ~$1.3 billion