United Parcel Service (NYSE:UPS) Shares Climb 6.1% After Earnings Beat

Key Points

• UPS shares jumped 6.1% after the company reported adjusted EPS of $1.69, beating the $1.62 consensus estimate, while revenue rose 6.9% year over year to $22.9 billion.
• Management raised its 2026 adjusted EPS and revenue forecasts for the second consecutive time, aided by stronger pricing, higher-margin international shipments, and a 53.8% increase in free cash flow.
• Despite the improved outlook, EPS declined from $1.74 a year earlier and margin pressure remains. UPS also announced a 5.9% rate increase and pays a quarterly dividend of $1.64 per share, representing a 6.2% yield.

United Parcel Service, Inc. (NYSE:UPS - Get Free Report) traded up 6.1% on Tuesday following a better than expected earnings announcement. The company traded as high as $106.59 and last traded at $106.4320. 10,922,672 shares were traded during mid-day trading, an increase of 95% from the average daily volume of 5,615,495 shares. The stock had previously closed at $100.32.

The transportation company reported $1.69 EPS for the quarter, topping the consensus estimate of $1.62 by $0.07. United Parcel Service had a return on equity of 37.50% and a net margin of 5.08%. The business's revenue was up 6.9% compared to the same quarter last year. During the same quarter last year, the firm posted $1.74 EPS.

United Parcel Service Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Thursday, September 3rd. Shareholders of record on Monday, August 17th were given a dividend of $1.64 per share. The ex-dividend date was Monday, August 17th. This represents a $6.56 annualized dividend and a yield of 6.2%. United Parcel Service's payout ratio is presently 121.93%.

Key United Parcel Service News

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

• Positive Sentiment: UPS reported third-quarter adjusted EPS of $1.69, above the $1.62 analyst consensus, while revenue increased 6.9% year over year to $22.9 billion, exceeding expectations. UPS beats quarterly expectations, raises full-year guidance again
• Positive Sentiment: Management raised its 2026 adjusted earnings forecast to $7.28 per share from $7.22, above the roughly $7.19 analyst estimate, and also increased its revenue outlook. This was the second consecutive guidance increase. UPS Raises Outlook as Revenue Climbs
• Positive Sentiment: Higher-margin international air shipments and improved pricing helped offset lower volumes, while free cash flow reportedly rose 53.8%. UPS also expects to earn more from a somewhat smaller holiday-delivery volume. UPS raises annual forecasts as higher-paying shipments boost margin
• Positive Sentiment: UPS identified a potential $15 billion data-center logistics opportunity, providing a longer-term growth catalyst beyond traditional parcel delivery. UPS raises 2026 outlook, CEO sees $15 billion data-center logistics opportunity
• Neutral Sentiment: UPS plans a 5.9% average rate increase effective December 21, matching FedEx’s planned increase. The move could support revenue and pricing, but customers may respond by reducing shipments or seeking alternatives. UPS plans 5.9% rate increase on Dec. 21
• Negative Sentiment: Adjusted EPS declined from $1.74 a year earlier, and operating-margin pressure persists. Reducing lower-margin Amazon deliveries improves shipment economics but also creates volume and customer-concentration risks. UPS Is Making More Money by Shipping Less for Amazon

Wall Street Analysts Forecast Growth

UPS has been the topic of a number of research analyst reports. Truist Financial decreased their price objective on shares of United Parcel Service from $130.00 to $115.00 and set a "buy" rating on the stock in a report on Wednesday, October 7th. The Goldman Sachs Group raised their price objective on United Parcel Service from $128.00 to $132.00 and gave the company a "buy" rating in a research note on Wednesday, July 29th. Sanford C. Bernstein reduced their price objective on United Parcel Service from $131.00 to $127.00 and set an "outperform" rating for the company in a report on Wednesday, October 21st. BMO Capital Markets lifted their price objective on United Parcel Service from $110.00 to $115.00 and gave the stock a "market perform" rating in a report on Wednesday, July 29th. Finally, Weiss Ratings upgraded United Parcel Service from a "sell (d+)" rating to a "hold (c-)" rating in a research report on Monday, August 17th. One investment analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating, eleven have given a Hold rating and three have given a Sell rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of "Hold" and an average target price of $115.70.

Institutional Investors Weigh In On United Parcel Service

A number of institutional investors have recently added to or reduced their stakes in the company. Sigma Planning Corp boosted its holdings in United Parcel Service by 37.1% in the first quarter. Sigma Planning Corp now owns 36,722 shares of the transportation company's stock worth $3,613,000 after purchasing an additional 9,941 shares during the period. First Trust Advisors LP increased its stake in United Parcel Service by 37.4% during the first quarter. First Trust Advisors LP now owns 3,631,133 shares of the transportation company's stock valued at $357,231,000 after purchasing an additional 988,442 shares during the last quarter. Candriam S.C.A. raised its holdings in shares of United Parcel Service by 29.6% during the first quarter. Candriam S.C.A. now owns 91,015 shares of the transportation company's stock worth $8,954,000 after purchasing an additional 20,791 shares during the period. National Pension Service raised its holdings in shares of United Parcel Service by 1.5% during the second quarter. National Pension Service now owns 2,379,189 shares of the transportation company's stock worth $255,763,000 after purchasing an additional 36,099 shares during the period. Finally, D.A. Davidson & CO. lifted its position in shares of United Parcel Service by 24.9% in the 1st quarter. D.A. Davidson & CO. now owns 161,007 shares of the transportation company's stock worth $15,840,000 after buying an additional 32,090 shares during the last quarter. Hedge funds and other institutional investors own 60.26% of the company's stock.

United Parcel Service Stock Performance

The stock's 50-day moving average price is $98.92 and its 200-day moving average price is $104.66. The company has a current ratio of 1.18, a quick ratio of 1.18 and a debt-to-equity ratio of 1.58. The company has a market capitalization of $90.55 billion, a P/E ratio of 19.78, a P/E/G ratio of 1.86 and a beta of 1.07.

United Parcel Service Company Profile

United Parcel Service, Inc NYSE: UPS is a global package delivery and logistics company. Its services include the transportation and delivery of packages and freight, time-definite express delivery, supply chain management, customs brokerage, and logistics consulting. UPS serves businesses and consumers through ground, air, and international delivery networks.

The company operates across the United States and in international markets throughout Europe, Asia-Pacific, Latin America, Canada, and other regions.

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