United Parcel Service

UPS Q3 2025 Earnings

Reported Oct 28, 2025 at 6:09 AM ET · SEC Source

Q3 25 EPS

$1.74

BEAT +33.94%

Est. $1.30

Q3 25 Revenue

$21.42B

BEAT +2.76%

Est. $20.84B

vs S&P Since Q3 25

+10.5%

BEATING MARKET

UPS +15.4% vs S&P +4.9%

Market Reaction

Did UPS Beat Earnings? Q3 2025 Results

United Parcel Service delivered a decisive earnings beat in Q3 2025, posting adjusted diluted EPS of $1.74 against a consensus estimate of $1.30, a +33.94% surprise that underscored how aggressively the company's cost transformation is reshaping its … Read more United Parcel Service delivered a decisive earnings beat in Q3 2025, posting adjusted diluted EPS of $1.74 against a consensus estimate of $1.30, a +33.94% surprise that underscored how aggressively the company's cost transformation is reshaping its financial profile even as top-line pressure persists. Revenue came in at $21.41 billion, edging past the $20.84 billion consensus by 2.76%, though the figure still represented a 3.6% decline year-over-year as planned volume reductions from its largest customer continued to weigh on results. The single most material driver behind the earnings strength was UPS's Network Reconfiguration and Efficiency Reimagined program, which has delivered approximately $2.20 billion in cost savings through the first nine months of the year, supported by the elimination of roughly 34,000 positions and the closure of 93 facilities. A $330 million sale-leaseback gain provided additional lift, contributing $0.30 to diluted EPS. Looking ahead, management guided Q4 revenue of approximately $24.00 billion with adjusted operating margin of 11.00%-11.50%, signaling growing confidence in the restructuring's trajectory as the holiday season approaches.

Key Takeaways

  • Higher revenue per piece in U.S. Domestic (up 9.8% to $13.47)
  • International average daily volume growth of 4.8%
  • $330 million pre-tax gain from sale-leaseback transaction on five properties
  • Cost savings of approximately $2.2 billion realized year-to-date from Network Reconfiguration and Efficiency Reimagined
  • Total operating expenses declined 3.2% with purchased transportation costs down 27.0%
  • Workforce reduced by approximately 34,000 operational positions and 93 building closures in first nine months of 2025
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UPS YoY Financials

Q3 2025 vs Q3 2024, source: SEC Filings

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UPS Revenue by Segment

With YoY comparisons, source: SEC Filings

Q1 25 Q1 26

“I want to extend my gratitude to all UPSers for their dedication and steadfast commitment to serving our customers. We are executing the most significant strategic shift in our company's history, and the changes we are implementing are designed to deliver long-term value for all stakeholders. With the holiday shipping season nearly upon us, we are positioned to run the most efficient peak in our history while providing industry-leading service to our customers for the eighth consecutive year.”

— Carol Tomé, Q3 2025 Earnings Press Release