- Consolidated revenue22.9 $bn +6.7% year on year
- GAAP diluted EPS1.37 $ $1.55 in Q3 2025
- Adjusted diluted EPS (non-GAAP)1.69 $ $1.74 in Q3 2025
- Net charge in GAAP results279 $m $0.32 per diluted share
| Items | Outlook issued 28 July 2026 | Outlook issued 27 October 2026 |
|---|---|---|
| 2026 consolidated revenue | about $91.2bn | about $92.6bn |
| 2026 adjusted operating profit (non-GAAP) | about $8.65bn | about $8.75bn |
| 2026 adjusted diluted EPS (non-GAAP) | about $7.22 | about $7.28 |
| 2026 adjusted free cash flow (non-GAAP) | No figure given in July | about $6.1bn |
In its third-quarter release on 27 October 2026, UPS lifted its full-year 2026 outlook, which it had also raised with its second-quarter results on 28 July. The parcel carrier now expects consolidated revenue of about $92.6bn, against about $91.2bn in July, adjusted (non-GAAP) operating profit of about $8.75bn, against about $8.65bn, and adjusted (non-GAAP) diluted EPS of about $7.28, against about $7.22. By our calculation, the EPS increase is $0.06, or about 0.8%. UPS says it has raised its adjusted (non-GAAP) free cash flow target to about $6.1bn; the July release did not give a figure for it.
Third-quarter consolidated revenue rose 6.7% year on year to $22.9bn, and each of its three business units grew. GAAP operating profit was $1,744m, against $1,804m a year earlier, for a margin of 7.6% against 8.4%. Adjusted (non-GAAP) operating profit was $2,054m, against $2,132m, a margin of 9.0% against 10.0%. GAAP diluted EPS was $1.37, down from $1.55 in the third quarter of 2025, and adjusted (non-GAAP) diluted EPS was $1.69, against $1.74 a year earlier.
The GAAP figures for the quarter carry a net charge of $279m, or $0.32 per diluted share. It is made up of $130m of after-tax transformation strategy costs and a $182m goodwill impairment charge for a reporting unit within Supply Chain Solutions, partly offset by a $33m gain on the sale of MD-11 assets. All of the quarter's transformation costs fall under Network Reconfiguration and Efficiency Reimagined, through which UPS is consolidating facilities, vehicles, aircraft and its workforce. The company says those initiatives produced about $1.8bn of benefits in the first nine months of 2026 and it expects nearly $3bn for the full year.
In U.S. Domestic, revenue rose 4.5% to $14,865m, which UPS attributes to a 6.1% increase in revenue per piece; average daily volume was 15.62 million pieces, against 16.15 million a year earlier. GAAP operating profit rose to $906m from $603m, and the adjusted (non-GAAP) operating margin was 7.0%, against 6.4%. Adjusted (non-GAAP) cost per piece rose 5.5% to $13.32. International revenue grew 7.1% to $5,007m, with revenue per piece up 15.0% and a 14.9% operating margin on both GAAP and adjusted bases. Supply Chain Solutions revenue rose 18.2% to $2,981m, but GAAP operating profit fell to $92m from $525m and adjusted (non-GAAP) operating profit to $274m from $536m.
Free cash flow (non-GAAP) for the first nine months of 2026 was $4,220m, against $2,744m a year earlier. For the full year, UPS confirmed capital expenditure of about $3.0bn, dividend payments of around $5.4bn subject to board approval, an effective tax rate of about 23% and $1.3bn of pension contributions. The company says it finished the planned volume reductions from its largest customer in the second quarter, and expects Efficiency Reimagined to run until the fourth quarter of 2027. For the fourth quarter of 2026, the company expects revenue of about $25.7bn and adjusted (non-GAAP) operating profit of about $3.3bn.
- UPS, third-quarter 2026 earnings release (Form 8-K, Exhibit 99.1, SEC EDGAR), 27 Oct 2026, 11:05 CET
- UPS, Form 8-K, Item 2.02 (SEC EDGAR filing index), 27 Oct 2026, 11:05 CET
- UPS, second-quarter 2026 earnings release with prior 2026 outlook (Form 8-K, Exhibit 99.1, SEC EDGAR), 28 Jul 2026, 12:03 CEST