Equities Analysts Offer Predictions for UPS Q3 Earnings

Key Points

• Near-term earnings expectations declined: Zacks cut UPS’s Q3 2026 EPS forecast to $1.60 from $1.82, although its full-year 2026 estimate remains $7.22.
• Longer-term outlook improved: Zacks raised its FY2027 and FY2028 EPS forecasts to $7.55 and $7.69, respectively. UPS also recently beat quarterly estimates, reporting $1.76 EPS and $22.83 billion in revenue.
• Analyst sentiment remains cautious: UPS carries a consensus “Hold” rating with a $117.41 price target, while shares recently traded near $101.94. The company also declared a $1.64 quarterly dividend, representing a 6.4% annualized yield.

United Parcel Service, Inc. (NYSE:UPS - Free Report) - Analysts at Zacks Research cut their Q3 2026 earnings per share (EPS) estimates for United Parcel Service in a research note issued on Tuesday, August 18th. Zacks Research analyst Team now forecasts that the transportation company will post earnings of $1.60 per share for the quarter, down from their prior forecast of $1.82. The consensus estimate for United Parcel Service's current full-year earnings is $7.22 per share. Zacks Research also issued estimates for United Parcel Service's Q4 2026 earnings at $2.79 EPS, FY2026 earnings at $7.22 EPS, Q1 2027 earnings at $1.41 EPS, Q2 2027 earnings at $1.34 EPS, Q3 2027 earnings at $1.68 EPS, Q4 2027 earnings at $3.12 EPS, FY2027 earnings at $7.55 EPS, Q1 2028 earnings at $1.36 EPS, Q2 2028 earnings at $1.52 EPS and FY2028 earnings at $7.69 EPS.

United Parcel Service (NYSE:UPS - Get Free Report) last posted its earnings results on Tuesday, July 28th. The transportation company reported $1.76 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.65 by $0.11. United Parcel Service had a return on equity of 37.50% and a net margin of 5.08%.The company had revenue of $22.83 billion during the quarter, compared to analyst estimates of $21.86 billion. During the same period in the previous year, the company earned $1.55 EPS. The company's revenue for the quarter was up 7.6% compared to the same quarter last year. United Parcel Service has set its FY 2026 guidance at 7.220-7.220 EPS.

Several other equities analysts have also recently weighed in on the company. Weiss Ratings upgraded United Parcel Service from a "sell (d+)" rating to a "hold (c-)" rating in a report on Monday. Stifel Nicolaus raised their price objective on shares of United Parcel Service from $114.00 to $115.00 and gave the stock a "buy" rating in a report on Wednesday, July 29th. Evercore cut their price objective on shares of United Parcel Service from $115.00 to $113.00 and set an "in-line" rating on the stock in a research report on Wednesday, April 22nd. Susquehanna upped their target price on shares of United Parcel Service from $118.00 to $120.00 and gave the stock a "neutral" rating in a research note on Wednesday, July 29th. Finally, Sanford C. Bernstein increased their target price on United Parcel Service from $130.00 to $133.00 and gave the stock an "outperform" rating in a report on Tuesday, July 21st. One research analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating, eleven have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the company currently has an average rating of "Hold" and a consensus price target of $117.41.

United Parcel Service Trading Down 0.1%

Shares of NYSE UPS opened at $101.94 on Wednesday. The stock has a market cap of $86.73 billion, a price-to-earnings ratio of 18.95, a P/E/G ratio of 1.89 and a beta of 1.06. United Parcel Service has a twelve month low of $82.00 and a twelve month high of $122.41. The company has a quick ratio of 1.18, a current ratio of 1.18 and a debt-to-equity ratio of 1.58. The company's fifty day moving average is $108.65 and its 200-day moving average is $106.45.

Institutional Investors Weigh In On United Parcel Service

A number of institutional investors and hedge funds have recently made changes to their positions in UPS. LFG Wealth Partners LLC bought a new position in shares of United Parcel Service in the fourth quarter valued at approximately $1,207,000. RiverFront Investment Group LLC lifted its stake in United Parcel Service by 937.9% during the 4th quarter. RiverFront Investment Group LLC now owns 245,564 shares of the transportation company's stock valued at $24,358,000 after acquiring an additional 221,905 shares in the last quarter. Bank of New York Mellon Corp boosted its holdings in United Parcel Service by 1.5% during the 4th quarter. Bank of New York Mellon Corp now owns 4,541,742 shares of the transportation company's stock worth $450,495,000 after acquiring an additional 65,652 shares during the last quarter. Nomura Asset Management Co. Ltd. grew its stake in shares of United Parcel Service by 4.0% in the 4th quarter. Nomura Asset Management Co. Ltd. now owns 435,126 shares of the transportation company's stock worth $43,160,000 after acquiring an additional 16,764 shares in the last quarter. Finally, Sigma Planning Corp raised its holdings in shares of United Parcel Service by 37.1% in the first quarter. Sigma Planning Corp now owns 36,722 shares of the transportation company's stock valued at $3,613,000 after purchasing an additional 9,941 shares during the last quarter. Institutional investors own 60.26% of the company's stock.

United Parcel Service Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, September 3rd. Shareholders of record on Monday, August 17th will be paid a $1.64 dividend. This represents a $6.56 dividend on an annualized basis and a yield of 6.4%. The ex-dividend date is Monday, August 17th. United Parcel Service's dividend payout ratio (DPR) is currently 121.93%.

United Parcel Service News Summary

Here are the key news stories impacting United Parcel Service this week:

• Positive Sentiment: Zacks Research raised longer-term earnings forecasts. The firm increased its FY2026 EPS estimate to $7.22 from $7.16, FY2027 to $7.55 from $7.37, and FY2028 to $7.69 from $7.44. It also lifted estimates for Q4 2026, Q1 and Q2 2027, and Q1 and Q2 2028. The revisions suggest improving expectations for UPS’s earnings trajectory beyond the immediate quarter.
• Positive Sentiment: UPS is expanding automation in customs processing. The company reportedly uses AI agents to handle about 90% of daily customs clearances, potentially reducing border delays, labor requirements and processing costs. UPS Automates 90% of Daily Customs Clearances With AI Agents
• Neutral Sentiment: The U.S. Department of Transportation approved a route reorganization. UPS plans to transfer Hong Kong all-cargo routes from Poland and Vietnam to the Philippines. The change could improve network efficiency, although the immediate financial benefit is unclear. DOT approves UPS transfer of Hong Kong routes to Philippines
• Negative Sentiment: Near-term earnings expectations were reduced. Zacks cut its Q3 2026 EPS forecast to $1.60 from $1.82, a sizable downgrade that could pressure the stock despite the improved full-year and longer-term outlook.
• Negative Sentiment: UPS issued long-dated floating-rate senior notes. The financing provides capital but increases debt exposure and leaves the company vulnerable to higher interest costs. United Parcel issues long-dated floating rate senior notes
• Negative Sentiment: The stock recently went ex-dividend. UPS’s $1.64-per-share dividend is payable September 3, but the ex-dividend date was August 17. The resulting mechanical adjustment and continued concerns about dividend sustainability may limit near-term demand from income investors. United Parcel Service Inc's Dividend Analysis

United Parcel Service Company Profile

United Parcel Service NYSE: UPS is a global package delivery and supply chain management company that provides a broad range of transportation, logistics and e-commerce services. Its core business centers on small-package delivery and last-mile distribution for business and individual customers, supported by a network of ground transportation, air cargo operations (UPS Airlines) and sorting facilities. In addition to parcel delivery, UPS offers freight transportation, contract logistics, warehousing, customs brokerage and reverse-logistics solutions designed to support domestic and international commerce.

The company traces its roots to 1907 when it began as a small messenger service in the United States and later evolved into the United Parcel Service.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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