United Parcel Service announced third-quarter financial results on Tuesday that exceeded Wall Street forecasts and prompted the company to increase its full-year guidance for the second consecutive quarter. The updated outlook raised consolidated revenue expectations to approximately $92.6 billion, an increase from the previous projection of $91.2 billion, with fourth-quarter revenue anticipated at $25.7 billion.
For the quarter ended Sept. 30, UPS reported net income of $1.16 billion, representing $1.37 per share, compared with $1.31 billion or $1.55 per share in the corresponding period last year. On an adjusted basis excluding one-time items, the company reported earnings per share of $1.69. Total revenue increased 6.7% to $22.9 billion. Within its operating segments, the domestic division experienced a 4.5% revenue gain while the international segment posted a 7.1% increase. The supply chain solutions business demonstrated stronger performance with an 18.2% revenue rise, driven largely by expansion in forwarding and logistics operations, particularly within healthcare services.
Chief Executive Officer Carol Tomé highlighted that healthcare revenue surpassed $3 billion for the third consecutive quarter. The company noted it had previously anticipated flat third-quarter domestic revenue and declining domestic average daily volume due to seasonal factors and reduced Amazon volume. Tomé attributed the stronger-than-expected performance to premium growth initiatives, improved revenue quality and mix, and greater operating leverage achieved through network efficiency improvements.
Looking ahead to the fourth quarter and peak holiday season, Tomé stated that consumer demand remained resilient and that growth in average daily volume between the third and fourth quarters would align with the prior year’s pattern. The company projected that fourth-quarter domestic average daily volume would decline due to continuing reductions with Amazon. Additionally, Tomé noted that nearly 70% of packages will be processed through automated systems during the upcoming holiday period as the company continues its ongoing business transformation under her leadership.
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