UPS (UPS) Q3 2026 earnings summary

Executive summary

• Q3 revenue rose 6.7% YoY to $22.853B; adjusted operating profit was $2.054B, down 3.7%, and adjusted diluted EPS was $1.69, down from $1.74.

• Revenue grew across all three segments; U.S. Domestic and International adjusted operating profit increased, while Supply Chain Solutions results faced a prior-year sale-leaseback comparison.

• Management cited premium volume, improved revenue quality and mix, and network efficiency as drivers of underlying performance; FY26 revenue, operating profit, EPS and free cash flow outlooks were raised.

Financial highlights

• Q3 GAAP operating profit was $1.744B versus $1.804B YoY; adjusted operating profit was $2.054B versus $2.132B.

• GAAP net income was $1.163B versus $1.311B; adjusted net income was $1.442B versus $1.475B. GAAP diluted EPS was $1.37 versus $1.55.

• Nine-month operating cash flow was $5.986B and free cash flow was $4.220B, versus $5.148B and $2.744B, respectively, a year earlier.

Outlook and guidance

• FY26 guidance: revenue ~$92.6B, adjusted operating profit ~$8.75B, adjusted diluted EPS ~$7.28, and adjusted free cash flow ~$6.1B.

• Q4 guidance: revenue ~$25.7B and adjusted operating profit ~$3.3B; effective tax rate expected at ~23%.

• Q4 segment outlook: U.S. Domestic revenue down 3.0% YoY at 10.5% adjusted margin; International revenue down 7.0% at ~20.0% margin; Supply Chain Solutions revenue up nearly 13% at ~12.2% margin.

• FY26 capex expected at ~$3.0B, pension contributions at $1.3B, and dividends at ~$5.4B subject to board approval.

• U.S. average daily volume expected to rise ~25% sequentially in Q4; nearly 70% of packages are expected to move through automated processes.