UPS Raises Annual Forecasts as Higher-Margin Parcels Drive Quarterly Profit Beat
- On Tuesday, United Parcel Service announced a 5.9% average rate increase for ground, air, and international services beginning December 21. The rate bump matches annual increases applied over the past three years.
- Tuesday's forecast raise follows UPS's decision to prioritize premium shipments and cut low-margin deliveries for Amazon while slashing $3 billion in costs this year. The company is repositioning for higher-margin growth.
- Consolidated revenue rose 6.7% to $22.9 billion, beating Wall Street expectations with an adjusted profit of $1.69 per share. CEO Carol Tomé said the results "demonstrate the continued strengthening of our business fundamentals."
- Small business shippers face a 4.5% rate hike and a 5% fuel surcharge on December 21. Paul Yaussy of Loop cautioned, "Don't plan around 5.9%. It's an average on base rates and won't reflect your actual cost."
- Rival FedEx revealed plans last month for a matching 5.9% rate hike effective January 4, 2027. UPS projects full-year consolidated revenue of approximately $92.6 billion amid industry-wide margin pressure.
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23 Articles
UPS just revealed a $92.6 billion surprise, and it’s bad news for one of its biggest customers
UPS is breaking up with Amazon – and so far it’s paying off. The delivery company issued its Q3 results on Tuesday, beating expectations and showing that scaling back its business schlepping packages for a major competitor was a smart gamble that could put its financials back on track. “We’re driving more premium growth, improving revenue quality and mix, and creating greater operating leverage through a more efficient network,” CEO Carol Tomé s…
UPS Rises 5% as Q3 Beat Lifts Full-Year Outlook; FedEx Inches Higher
UPS just handed investors a beat-and-raise quarter heading into the holiday peak, but a profit stumble in one key segment and months of headwinds from its largest customer cut could complicate the celebration.
UPS raised its projections for the year and recorded revenues above what was expected in the third quarter, as recent restructuring efforts continued to generate results. Exclusive material for subscribers. To have full access, access the link of the material and register.
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