UPS prepares to report third-quarter earnings

United Parcel Service (UPS) is scheduled to announce its third-quarter financial results before the market opens on Tuesday, Oct. 27. The company is approaching this report following a significant decline in stock price, which has fallen approximately 57% from its February 2022 peak of $232.11.

Much of the stock's decline is attributed to a sharp drop in profits. Management has projected earnings per share for 2026 to be around $7.22, a roughly 44% decrease from 2022 levels. This decline includes a strategic decision to reduce parcel volume for its largest customer, Amazon, by over 50% by the second half of 2026.

Despite these challenges, recent indicators show signs of a leaner network. In the second quarter, UPS reported that its U.S. domestic revenue grew 6% year-over-year, while adjusted operating profit rose 21% to approximately $1.2 billion. Analysts expect revenue to grow 3.6% year-on-year this quarter, a reversal from the 3.7% decrease recorded in the same period last year.