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.
27 Articles
27 Articles
UPS CEO on Earnings, Data Center Logistics and Trade
UPS CEO Carol Tomé says forwarding and logistics grew 17% in the quarter, helped by premium health care and data-center construction. She speaks with Romaine Bostick on "Bloomberg The Close." (Source: Bloomberg)
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.
Coverage Details
Bias Distribution
- 69% of the sources are Center
Factuality
To view factuality data please Upgrade to Premium
