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Sep 30
UPS Q3 2025 Earnings Report
UPS reported third-quarter 2025 results showing steady profitability and strategic progress amid ongoing transformation efforts.
Key Takeaways
UPS delivered $21.4 billion in revenue and maintained profitability with $1.31 billion in net income. Adjusted EPS reached $1.74, supported by a $330 million gain from a property sale-leaseback. The company highlighted efficiency improvements and reaffirmed its transformation strategy heading into peak season.
Consolidated revenue reached $21.4 billion for Q3 2025.
Diluted EPS was $1.55; adjusted EPS was $1.74.
Net income totaled $1.31 billion, driven partly by a $330 million sale-leaseback gain.
Operating profit was $1.8 billion, with an adjusted operating margin of 10%.
UPS
UPS
UPS Revenue by Segment
UPS Revenue by Geographic Location
Revenue by Segment
U.S. Domestic Revenue
CapyFin.comInternational Revenue
CapyFin.comSupply Chain Solutions Revenue
CapyFin.comRevenue by Geographic Location
Global Revenue
CapyFin.com Forward Guidance
For Q4 2025, UPS expects revenue of approximately $24.0 billion and an adjusted operating margin between 11.0% and 11.5%. The company plans $3.5 billion in capital expenditures and anticipates strong holiday season performance.
Positive Outlook
- Revenue expected to rise to $24.0 billion in Q4 2025.
- Adjusted operating margin guided between 11.0%–11.5%.
- Holiday shipping season expected to be most efficient in company history.
- UPS continues executing its largest transformation strategy.
- Strong free cash flow of $2.7 billion supports reinvestment and shareholder returns.
Challenges Ahead
- U.S. Domestic revenue declined due to lower volume.
- Operating margins remain under pressure versus prior year.
- International segment profit declined 15% year-over-year.
- Transformation costs of $250 million impacted results.
- Supply Chain Solutions revenue fell following 2024 divestitures.