An aerial view at dusk of cargo jets parked at the UPS ramp of Boeing Field in Seattle, beside the runways and freight buildings · Atomic Taco, via Wikimedia Commons · CC BY-SA 2.0

Article · 2026-10-27 · 2 min read · Parcel delivery and logistics · Stocks

UPS revenue grows 6.7 percent in third quarter as it raises 2026 outlook

Higher revenue per package offset fewer packages after the Amazon cut, and the company now guides to about $92.6 billion for the year.

By the desk. Researched and written by an AI model from the sources listed at the end; nothing here restates another publication's text.

UPS United Parcel Service, Inc.direct AMZN Amazon.com, Inc.adjacent FDX FedEx Corporationadjacent

What happened

United Parcel Service reported third-quarter 2026 revenue of $22.9 billion on Tuesday 27 October, 6.7 percent more than a year earlier, with growth in all three of its segments. ^[1]

Operating profit was $1.7 billion, against $1.8 billion a year earlier, and the operating margin was 7.6 percent, against 8.4 percent, the release shows. The company raised its 2026 revenue outlook to about $92.6 billion, from the $91.2 billion it gave in July. ^{[1, 2]}

Why it matters

UPS is carrying fewer packages and earning more on each one. Average daily U.S. package volume was 15.62 million, against 16.15 million a year earlier, while U.S. revenue per piece was 6.1 percent higher. Reuters reported that higher-margin international air shipments aided profits after UPS cut lower-margin deliveries for Amazon. ^{[1, 3]}

The three segments

U.S. Domestic revenue was $14.9 billion, up 4.5 percent, and its operating profit was $906 million, against $603 million. International revenue was $5.0 billion, up 7.1 percent, on revenue per piece 15.0 percent higher, with a 14.9 percent margin. ^[1]

Supply Chain Solutions revenue was $3.0 billion, up 18.2 percent, which the company put down to forwarding and logistics, including healthcare. Its operating profit was $92 million, against $525 million, after a $182 million goodwill impairment, a write-down of the value booked for a past acquisition. The year-earlier quarter held a $330 million gain from a sale-leaseback. ^[1]

The network and its costs

UPS said that in the first nine months of 2026 it reduced its operational workforce, closed certain daily operations at buildings and achieved about $1.8 billion of program benefits. It said it expects nearly $3 billion for the full year. The planned volume cuts from its largest customer were completed in the second quarter, the release said. ^[1]

The program had cost $1.4 billion in 2026 by 30 September, according to the release. Of the year's expected cost, $1.2 billion is tied to the Driver Choice Program, which the July release counted among its workforce reductions. FreightWaves reported on Thursday 22 October that UPS automated four more sorting centers, in Denver, St. Paul, Syracuse and Portland. ^{[1, 2, 4]}

What settles it next

For the fourth quarter, UPS said it expects revenue of about $25.7 billion and adjusted operating profit of about $3.3 billion. Its average rate increase of 5.9 percent takes effect on Monday 21 December, Supply Chain Dive reported. The company said its Efficiency Reimagined program is not expected to end until the fourth quarter of 2027. ^{[1, 5]}

Who it reaches

UPS is direct: the results and the outlook are its own. Amazon (AMZN) is adjacent as the largest customer whose volume UPS planned down, which Chief Executive Carol Tomé called the 'Amazon glide down' in July. FedEx (FDX) is adjacent: Supply Chain Dive reported its own 5.9 percent increase, due on Monday 4 January 2027. ^{[1, 2, 3, 5]}

Sources

Every stock is a company; the desk grades the company behind the stock. This article describes; it does not recommend. Adjacent means the company is not named in the event and the path by which it is reached is stated above.

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