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Sep 30, 2025
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%.
Revenue by Segment
Revenue by Geographic Location
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.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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