Supply Chain Surge Lifts UPS Revenue Forecast to $92.6 Billion
The carrier lifted its full-year outlook to $92.6 billion, driven by a 4.5% jump in domestic sales and an 18.2% surge in supply chain services.
By Alina Campbell ·
UPS shareholders received a boost in premarket trading on Tuesday after the company announced it expects to generate approximately $92.6 billion in consolidated revenue for the full year. This projection stands $1.4 billion higher than the $91.2 billion target set in the previous quarter. The carrier also forecast fourth-quarter revenue of $25.7 billion.
The company topped Wall Street estimates for the third quarter ended Sept. 30. Revenue reached $22.9 billion, exceeding the $22.29 billion average projected by analysts polled by LSEG. Adjusted earnings per share came in at $1.69, beating the $1.63 consensus. Net income totaled $1.16 billion, or $1.37 per share, a slight decrease from the $1.31 billion, or $1.55 per share, reported the year prior.
Growth was strongest in the supply chain solutions business, which saw an 18.2% revenue increase. The company attributed this gain to expansion in forwarding and logistics, particularly within the healthcare sector. The international segment posted a 7.1% revenue rise, while domestic revenue climbed 4.5%.
The domestic results marked a shift from earlier internal forecasts that called for flat revenue and declining daily volume due to seasonal trends and reduced volume from Amazon. CEO Carol Tomé stated the company is entering the holiday season with a highly automated network. "As momentum builds, we are entering the holiday shipping season from a position of strength, with the most automated and efficient network in our history," Tomé said.
The performance reflects the ongoing restructuring efforts under Tomé. The leadership team has focused on streamlining operations and increasing automation to improve efficiency and support future growth.
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