United Parcel Service (UPS) reported better-than-expected third-quarter earnings on Tuesday, sending its shares surging nearly 10% in premarket trading ahead of the crucial holiday shipping season.
For the quarter ended September 30, 2025, UPS posted adjusted earnings per share (EPS) of $1.74, beating Wall Street expectations of $1.30 per share. Revenue came in at $21.4 billion, ahead of the forecasted $20.83 billion.
The company reported a net income of $1.31 billion, or $1.55 per share, compared to $1.99 billion, or $1.80 per share, in the same quarter last year. Excluding one-time items, including expenses related to its transformation plan, adjusted profit stood at $1.48 billion, or $1.74 per share.
Looking ahead, UPS expects fourth-quarter revenue of around $24 billion and an operating margin between 11% and 11.5% as it prepares for peak delivery season.
As part of its strategic overhaul, the company announced it has cut 34,000 jobs, significantly higher than the earlier estimate of 20,000, and has reduced its reliance on Amazon, once its largest customer. UPS also completed a sale-leaseback transaction of five properties, generating a $330 million pre-tax gain within its supply chain solutions segment.
Chief Executive Officer Carol Tomé called it “the most significant strategic shift in our company’s history,” adding, “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.”
UPS’s decisive restructuring and improved efficiency measures appear to have strengthened investor confidence, as shares rose sharply following the results.
