UPS Raises 2026 Revenue Outlook After Supply Chain Surge

The Tip Desk · October 30, 2026 · 3 min read

Third-quarter revenue reached $22.9 billion as the parcel and logistics company lifted its full-year target to about $92.6 billion.

United Parcel Service (UPS) reported third-quarter 2026 consolidated revenue of $22.9 billion, up 6.7% from a year earlier, and raised its full-year 2026 outlook for a second consecutive quarter.

The logistics company now expects full-year 2026 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 $6.1 billion. Those figures sit above the July raise to about $91.2 billion of revenue, $8.65 billion of adjusted operating profit and $7.22 of adjusted EPS.

GAAP diluted earnings were $1.37 a share, down from $1.55 a year earlier. Non-GAAP adjusted diluted EPS was $1.69, versus $1.74 a year earlier. GAAP operating margin was 7.6%, and the non-GAAP adjusted operating margin was 9.0%.

GAAP results included a net charge of $279 million, or $0.32 a share, comprised of after-tax transformation strategy costs of $130 million and a $182 million goodwill impairment in Supply Chain Solutions, partly offset by a $33 million gain on sale of MD-11 assets.

Chief executive Carol Tomé said third-quarter results showed “continued strengthening of our business fundamentals, driven by premium growth and greater network efficiency,” and that the company was entering the holiday shipping season from a position of strength. She said the company was raising full-year financial guidance given the strength it sees in the business.

U.S. Domestic revenue was $14.865 billion, up 4.5% from a year earlier, driven by a 6.1% increase in revenue per piece. That followed 6.0% growth in the second quarter and a 2.3% decline in the first quarter. GAAP operating profit was $906 million and GAAP operating margin was 6.1%; non-GAAP adjusted operating profit was $1.034 billion and adjusted margin was 7.0%.

International revenue was $5.007 billion, up 7.1% from a year earlier, driven by a 15.0% increase in revenue per piece. Operating profit was $746 million on both a GAAP and non-GAAP adjusted basis, with operating margin of 14.9% on both bases.

Supply Chain Solutions revenue was $2.981 billion, up 18.2% from a year earlier, primarily due to growth in forwarding and logistics, including healthcare. GAAP operating profit fell to $92 million from $525 million a year earlier, with GAAP operating margin of 3.1% versus 20.8%. Non-GAAP adjusted operating profit was $274 million and adjusted margin was 9.2%. The year-ago period included a $330 million pre-tax gain, or $0.30 of EPS, from a sale-leaseback transaction.

In the first nine months of 2026, Network Reconfiguration and Efficiency Reimagined initiatives achieved about $1.8 billion of program benefits. UPS expects nearly $3 billion in full-year 2026 benefits from those initiatives. Planned volume reductions from its largest customer were completed in the second quarter of 2026; Efficiency Reimagined is not expected to conclude until the fourth quarter of 2027.

For the fourth quarter of 2026, UPS expects consolidated revenue of approximately $25.7 billion and non-GAAP adjusted operating profit of approximately $3.3 billion. The company confirmed full-year 2026 capital expenditures of about $3.0 billion, dividend payments of around $5.4 billion, subject to board approval, an effective tax rate of about 23%, and $1.3 billion in pension contributions.