United Parcel Service Stock Earnings Reports

UPS reported Q3 2025 consolidated revenue of $21.4 billion, operating profit of $2.1 billion and an operating margin of 10%. Year-to-date free cash flow recovered to $2.7 billion. The company continues executing a multi-quarter Amazon volume glide down (Amazon Q3 volume -21.2% YoY) while improving revenue quality — U.S. revenue per piece rose 9.8% in Q3 — and delivering expense reductions. UPS has removed $2.2 billion of expense year-to-date and remains on track for its 2025 expense reduction target of about $3.5 billion. Network reconfiguration (93 buildings closed YTD, 195 operations removed) and automation (more facilities and higher percent of volume processed via automation) are materially reducing reliance on seasonal capacity and are expected to enable a more efficient peak season. International volumes grew (total international ADV +4.8%) but margins are pressured by trade-lane mix shifts after de minimis elimination and other tariff changes; third-quarter international operating margin was 14.8%. Supply Chain Solutions revenue declined (impacted by divestiture of Coyote and softer forwarding), but Healthcare Logistics and DAP (digital access program) drove growth — DAP revenue expected >$3.5 billion full year. UPS expects to close the Andlauer healthcare acquisition in early November. UPS provided Q4 guidance: consolidated revenue ~ $24 billion and consolidated operating margin ~ 11%–11.5%; U.S. Domestic revenue ~ $16.2 billion with margin ~ 9.5%–10%; International revenue ~ $5.0 billion with margin 17%–18%; Supply Chain Solutions revenue ~ $2.7 billion with margin ~ 9%. Capital allocation: ~ $3.5 billion capex for the year, ~$5.5 billion in dividends (subject to Board approval), and targeted $1 billion of share repurchases completed. Management emphasized strong liquidity and preparedness for peak, while noting near-term headwinds from trade policy shifts, Ground Saver volume declines (Ground Saver ADV -32.7% YoY) and some demand impacts in forwarding.