United Parcel Service (UPS) shares jumped more than 12% in premarket trading on Tuesday after the logistics giant reported third-quarter results that topped Wall Street estimates and revealed major progress in its cost-cutting and restructuring strategy.
Strong Q3 performance
For the quarter ended September 30, 2025, UPS reported a net income of $1.31 billion, or $1.55 per share, compared with $1.99 billion, or $1.80 per share, a year ago. On an adjusted basis, excluding one-time costs, the company earned $1.74 per share, comfortably surpassing analysts’ expectations of $1.31 per share, according to Zacks Investment Research.
Revenue came in at $21.42 billion, beating the $20.84 billion estimate and reflecting resilience across key business segments despite reduced Amazon volumes.
Turnaround efforts and cost savings
UPS said in a regulatory filing that it has eliminated approximately 34,000 positions and shut down operations at 93 leased and owned buildings in the first nine months of 2025 as part of its ongoing turnaround and efficiency plan.
The company, which had earlier announced plans to cut 20,000 jobs and close over 70 facilities by mid-2025, said it continues to review its network to identify additional closures. The restructuring comes amid efforts to reduce dependence on Amazon, UPS’s biggest customer, after both firms reached an agreement earlier this year to cut shipment volume by over 50% by late 2026.
As of September 30, UPS has achieved cost savings of about $2.2 billion, with total year-over-year savings expected to reach $3.5 billion in 2025.
CEO’s outlook
UPS CEO Carol Tomé said earlier this year that the company is making “the most significant strategic shift in its history,” emphasizing a leaner, more profitable structure. The cost-reduction measures, combined with operational consolidation, aim to position UPS for sustained growth while maintaining industry-leading service efficiency during the upcoming holiday season.
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