UPS Raises Full-Year Guidance as Higher Revenue per Piece Offsets Declining Parcel Volumes

UPS on October 27 reported third-quarter revenue of $22.853 billion, up 6.7% year over year, and raised its full-year revenue forecast to $92.6 billion from $91.2 billion. Full-year adjusted earnings per share guidance rose to $7.28 from $7.22. Growth came from pricing rather than volume. U.S. average daily parcel volume fell 3.3% while revenue per piece rose 6.1%, lifting U.S. revenue 4.5%. International average daily volume dropped 8.7%, but revenue per piece climbed 15%, driving 7.1% international revenue growth. CEO Carol Tomé attributed the quarter's performance to growth in high-value segments and improved delivery network efficiency. UPS is reshaping its customer mix and network to shed lower-margin parcel business, having completed planned volume reductions with its largest customer, Amazon, in the second quarter, with efficiency initiatives running through the fourth quarter of 2027. Network restructuring and efficiency programs delivered $1.8 billion in benefits through the first nine months of the year, with full-year benefits expected near $3 billion. Third-quarter net income fell to $1.16 billion from $1.31 billion a year earlier, reflecting transformation charges and a goodwill impairment, against a prior-year comparison that included a sale-leaseback gain.