United Parcel Service 8-K

EarningsGuidance raisedImpairment / charge

Higher U.S. Domestic revenue per piece and network efficiency support raised FY2026 adjusted EPS guidance of ≈$7.28.

Filed 2026-10-27 06:05 ET

Summary

Q3 2026 results with raised Q4 and full-year guidance. UPS reported 6.7% revenue growth, citing higher revenue per piece across its package segments and greater network efficiency. It raised its outlook as it heads into the holiday shipping season, while Supply Chain Solutions operating profit fell sharply, including the effect of a goodwill impairment.

Key Figures

Metric Q3 2026 9M 2026
Revenue $22.9B, +6.7% Y/Y —
Operating profit, GAAP $1.74B, -3.3% Y/Y $3.94B, -25.5% Y/Y
Operating profit, non-GAAP adjusted $2.05B, -3.7% Y/Y $5.48B, -5.1% Y/Y
Net income, GAAP $1.16B, -11.3% Y/Y $2.63B, -30.4% Y/Y
Net income, non-GAAP adjusted $1.44B, -2.2% Y/Y $3.84B, -5.3% Y/Y
Diluted EPS, GAAP $1.37, vs $1.55 $3.09, vs $4.46
Diluted EPS, non-GAAP adjusted $1.69, vs $1.74 $4.52, vs $4.78
Operating cash flow — $5.99B, +16.3% Y/Y
Free cash flow, non-GAAP — $4.22B, +53.8% Y/Y
  • U.S. Domestic revenue rose 4.5% to $14.9B, driven by a 6.1% increase in revenue per piece; GAAP operating profit was $906M vs $603M, and adjusted profit was $1.03B vs $905M. International revenue increased 7.1% to $5.01B, with revenue per piece up 15.0%; operating profit was $746M vs $676M on a GAAP basis and $746M vs $691M adjusted.
  • Supply Chain Solutions revenue increased 18.2% to $2.98B, primarily on forwarding and logistics growth, including healthcare. Operating profit was $92M vs $525M GAAP and $274M vs $536M adjusted; the prior-year quarter included a $330M pre-tax sale-leaseback gain. The current quarter included a $182M goodwill impairment charge in the segment.
  • Q3 GAAP results included a net charge of $279M, or $0.32 per diluted share, comprising $130M of after-tax transformation costs and the $182M goodwill impairment, partly offset by a $33M gain on the sale of MD-11 assets. UPS reported $1.8B of benefits from its transformation initiatives in 9M 2026 and expects nearly $3B for FY2026; it had incurred $1.4B of initiative costs during 2026 through 9/30/2026. Its Efficiency Reimagined initiative is expected to continue through Q4 2027.

Guidance

Metric Period Guidance Prior Direction
Consolidated revenue Q4 2026 ≈$25.7B — Raised
Operating profit, non-GAAP adjusted Q4 2026 ≈$3.3B — Raised
Consolidated revenue FY2026 ≈$92.6B — Raised
Operating profit, non-GAAP adjusted FY2026 ≈$8.75B — Raised
Diluted EPS, non-GAAP adjusted FY2026 ≈$7.28 — Raised
Free cash flow, non-GAAP adjusted FY2026 ≈$6.1B — Raised
Capital expenditures FY2026 ≈$3.0B — Reaffirmed
Dividend payments FY2026 ≈$5.4B, subject to board approval — Reaffirmed
Effective tax rate FY2026 ≈23% — Reaffirmed
Pension contributions FY2026 $1.3B — Reaffirmed
Guidance changes, derived from earlier filings
MetricPeriodEarlier guidanceGuidance nowChange
Consolidated revenueFY2026≈$91.2B≈$92.6Braised
Operating profit, non-GAAP adjustedFY2026≈$8.65B≈$8.75Braised
Diluted EPS, non-GAAP adjustedFY2026≈$7.22≈$7.28raised
Capital expendituresFY2026≈$3.0B≈$3.0Breaffirmed
Dividend paymentsFY2026≈$5.4B≈$5.4B, subject to board approvalreaffirmed
Effective tax rateFY2026≈23.0%≈23%reaffirmed

Investor Takeaways

  • Q4 revenue and non-GAAP adjusted operating profit versus guidance will test whether UPS carries its reported momentum through the holiday shipping season.
  • U.S. Domestic revenue per piece and package volume, alongside adjusted cost per piece, will indicate whether pricing and network efficiency continue to support results.

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The summary is written by an AI model reading the filing.

Model 005 · prompt v111 · 2026-10-27 14:43:16Z

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