United Parcel (UPS) Q3 2026 Earnings Report
MX:UPS Q3 2026 EPS Results
- Actual EPS
- MXN 31.76
- Consensus EPS
- MXN 30.52
- Beat/Miss
- Beat by +MXN 1.24
- One Year Ago EPS
- MXN 32.70
MX:UPS Q3 2026 Revenue Results
- Actual Revenue
- MXN 430.34B
- Expected Revenue
- MXN 418.54B
- Beat/Miss
- Beat by +MXN 11.79B
- YoY Revenue Growth
- +6.85%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 10/27/2026
- Time
- Before Open
- Conference Call
- Tuesday, October 27, 2026
United Parcel's next earnings date is estimated for February 2, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
The call was strongly positive. UPS reported broad revenue growth, improving operating profit and margins, stronger SMB and premium-volume trends, recovery in International profitability, growth in Supply Chain Solutions, and raised full-year and fourth-quarter guidance. The main challenges were the planned Amazon volume reduction, International volume declines tied to geopolitical tensions and European trade-policy changes, the Mail Innovations decline, and specified transformation and Driver Choice Program costs.
For full-year 2026, UPS now expects consolidated revenue of approximately $92.6 billion, consolidated operating profit of approximately $8.75 billion, diluted earnings per share of approximately $7.28, free cash flow of approximately $6.1 billion, capital expenditures of about $3 billion, dividends of around $5.4 billion, subject to board approval, and a tax rate of approximately 23%; for the fourth quarter, it expects consolidated revenue of approximately $25.7 billion, up approximately 5% year-over-year, operating profit of approximately $3.3 billion, U.S. Domestic revenue up approximately 3% year-over-year with an operating margin of approximately 10.5%, International revenue up approximately 7% with an operating margin of approximately 20%, Supply Chain Solutions revenue up nearly 13% with an operating margin of approximately 12.2%, approximately $190 million in below-the-line expense, and a tax rate of approximately 23%. Average daily volume is expected to increase approximately 25% from the third quarter to the fourth quarter, while fourth quarter U.S. average daily volume is expected to be lower year-over-year; UPS expects a 50-100 basis points spread between RPP and CPP, 200-300 basis point base pricing and mix improvement, and International margin in 2027 to be in the mid to high teens.
- Consolidated Revenue and Profit GrowthThird-quarter consolidated revenue was $22.9 billion, up 6.7% year-over-year, while consolidated operating profit was $2.1 billion. Consolidated operating margin was 9% and diluted earnings per share were $1.69.
- U.S. Domestic Operating ImprovementU.S. Domestic revenue was $14.9 billion, up 4.5% year-over-year, and operating profit exceeded $1 billion, increasing 14.3%. Operating margin was 7%, up 60 basis points, as revenue per piece growth exceeded cost per piece growth by 60 basis points.
- Growth in SMB and Enterprise VolumeAverage daily volume from SMB and enterprise customers increased 1.8% year-over-year, or by more than 200,000 pieces per day. SMB average daily volume increased 3.7%, and SMBs represented a record 35.1% of total U.S. volume, up approximately 240 basis points from last year.
- Improved U.S. Revenue Quality and PricingU.S. revenue per piece increased 6.1% year-over-year, with about half of the increase coming from base rates and customer mix improvements and the remainder from higher fuel rates. Management expects to continue achieving approximately 200-300 basis points of base-rate pricing and mix benefit.
- International Profitability RecoveryInternational returned to year-over-year operating profit growth for the first time in six quarters. Revenue was $5 billion, up 7.1%, operating profit was $746 million, up $55 million, and operating margin was 14.9%, slightly above the third quarter of last year and well above expectations.
- International Trade-Lane MomentumAsia-to-Asia export volume increased 8.4% year-over-year, and inbound U.S. volume returned to year-over-year growth in September. Volume declines improved each month during the quarter, with September volume finishing well above July levels.
- Supply Chain Solutions GrowthSupply Chain Solutions revenue was $3 billion, an increase of $459 million year-over-year. Forwarding revenue increased 17.5%, driven by higher international air-freight and ocean-freight rates, while Logistics revenue increased 17.2%, driven by strong healthcare logistics growth.
- Digital Businesses and Premium Customer DemandUPS Digital, including Roadie and Happy Returns, delivered revenue growth of nearly 50% compared with the third quarter of 2025. Supply Chain Solutions growth was driven by demand from high tech, healthcare, manufacturing, and automotive customers.
- Healthcare and Digital Access Program ExpansionHealthcare revenue exceeded $3 billion for the third consecutive quarter, with year-over-year growth in every segment. Global Digital Access Program revenue reached $1.4 billion, and air services and ground commercial represented nearly 30% of total DAP volume for the first time.
- Network Automation and RFID ProgressNearly 70% of all packages are expected to flow through an automated process during peak. UPS expects to deliver more than 4 billion RFID-enabled packages by year-end, and RFID labeling is already deployed at 315 customer locations covering approximately 3 million packages per day, expected to grow to 6 million packages next year.
- New Global Operating Model and Network InvestmentsUPS implemented a new global operating model covering U.S. Domestic, International and Supply Chain Solutions, and global network operations. The company also opened a new air hub at Clark International Airport in the Philippines, improving transit times across more than 1,100 trade lanes, and added a 129,000-square-foot multifunctional facility in Amsterdam for freight forwarding, customs brokerage and healthcare cold-chain capabilities.
- Peak-Season Readiness and Service PositionBased on forecasts from just over 100 U.S. customers accounting for approximately 80% of peak surge, UPS expects average daily volume to increase approximately 25% from the third quarter to the fourth quarter. UPS has been the industry leader in on-time service during peak for the past eight years and expects to pursue a ninth year.
- Raised Full-Year and Fourth-Quarter OutlookUPS raised its full-year 2026 outlook to approximately $92.6 billion of consolidated revenue, $8.75 billion of consolidated operating profit and approximately $7.28 of diluted EPS. Fourth-quarter revenue is expected to be approximately $25.7 billion, up approximately 5%, with operating profit of approximately $3.3 billion.
- Segment Outlook ImprovementFor the fourth quarter, UPS expects U.S. Domestic revenue to increase approximately 3% year-over-year with an operating margin of approximately 10.5%; International revenue to increase approximately 7% with an operating margin of approximately 20%; and Supply Chain Solutions revenue to increase nearly 13% with an operating margin of approximately 12.2%.
- Cash Generation and LiquidityYear-to-date cash from operations was $6 billion and free cash flow was $4.2 billion. UPS ended the quarter with $6.8 billion of cash and no outstanding commercial paper. Full-year free cash flow is now expected to be approximately $6.1 billion, while capital expenditures are expected to be about $3 billion.
- Dividend and Pension PositionUPS paid $4.1 billion in dividends year-to-date and plans to pay around $5.4 billion in dividends in 2026, subject to board approval. The company issued $1.3 billion of debt, including to complete a $450 million pension contribution using UPS bonds, which management said further strengthened the plan's funded status.
- Cost-Savings Program on TrackManagement said it remains comfortable achieving the $3 billion cost-savings objective. Approximately $1.8 billion had been achieved through September, with the remaining savings supported by reduced hours associated with lower Amazon volume, completion of the Driver Choice Program and building exits.
- Large Addressable Premium MarketsManagement estimates UPS's total addressable market at approximately $922 billion, including a premium opportunity of approximately $535 billion globally and approximately $150 billion in the United States. Data-center-related logistics opportunities alone were estimated at $15 billion, while U.S. high-tech small-package business grew 30% year-over-year in the quarter.
- Positive Competitive and Customer Retention TrendsManagement said churn has shown dramatic improvement and that the pricing environment remains rational among competitors. UPS has not seen a measurable or meaningful impact from Amazon's shipping announcement, and management said underlying volume trends remain favorable.
MX:UPS Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Feb 02, 2027 | 2026 (Q4) | 51.96- | 44.73 | ― | ― |
| Oct 27, 2026 | 2026 (Q3) | 30.5231.76 | 32.7 | -2.87% (-0.94) | |
| Jul 28, 2026 | 2026 (Q2) | 31.2733.07 | 29.13 | 13.55% (+3.95) | |
| Apr 28, 2026 | 2026 (Q1) | 19.0920.11 | 28 | -28.19% (-7.89) | |
| Jan 27, 2026 | 2025 (Q4) | 41.3644.73 | 51.68 | -13.45% (-6.95) | |
| Oct 28, 2025 | 2025 (Q3) | 24.2632.70 | 33.07 | -1.14% (-0.38) | |
| Jul 29, 2025 | 2025 (Q2) | 29.3729.13 | 33.64 | -13.41% (-4.51) | |
| Apr 29, 2025 | 2025 (Q1) | 25.9328.00 | 26.87 | 4.20% (+1.13) | |
| Jan 30, 2025 | 2024 (Q4) | 47.5651.68 | 46.42 | 11.34% (+5.26) | |
| Oct 24, 2024 | 2024 (Q3) | 30.8033.07 | 29.5 | 12.10% (+3.57) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
