UPS earnings fell in the third quarter of 2026 even as revenue rose 6.7% to $22.9 billion. The package-delivery company reported diluted earnings of $1.37 per share and raised its full-year financial outlook in its October 27 results announcement.

Key Takeaways

  • Revenue grew across all segments, but reported operating profit and earnings per share declined from a year earlier.
  • UPS reported charges associated with its transformation and a goodwill impairment in Supply Chain Solutions.
  • The company raised its full-year outlook; its revenue forecast remains guidance rather than a completed result.

UPS earnings show a gap between sales and profit

Consolidated revenue increased from $21.5 billion in the third quarter of 2025 to $22.9 billion a year later. GAAP operating profit fell to $1.7 billion from $1.8 billion, while the operating margin narrowed to 7.6% from 8.4%.

Reported diluted earnings per share declined from $1.55 a year earlier. Non-GAAP adjusted earnings per share were $1.69, compared with $1.74. The reported $1.37 also fell below an analyst estimate of $2.74, although the available source does not specify the accounting basis of that estimate.

Transformation and impairment charges weigh on results

UPS reported $279 million in net charges associated with its transformation strategy. The costs included $130 million in after-tax strategic transformation expenses and a $182 million goodwill impairment charge in Supply Chain Solutions.

The company has been reconfiguring its network and prioritizing higher-margin areas such as healthcare while reducing its reliance on Amazon volume. Revenue per piece improved in both its U.S. Domestic and International segments.

Full-year outlook moves higher

UPS raised its full-year financial guidance, with anticipated 2026 revenue of approximately $91,724.65 million. For the fourth quarter, it forecast non-GAAP adjusted operating profit of about $3.3 billion.

Chief Executive Carol Tomé attributed the third-quarter improvement in business fundamentals to premium growth and greater network efficiency. She cited the strength UPS sees in its business as the reason for raising full-year guidance.

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