A UPS worker pushes a shopping cart in New York, United States, Monday, October 27, 2025.
Michael Nagle | Bloomberg | Getty Images
United Parcel Service Tuesday’s results beat Wall Street estimates as the busy holiday season approaches.
Shares of the package delivery giant jumped 10% in premarket trading.
Here’s the company’s third-quarter performance, compared to what Wall Street expected based on a survey of analysts by LSEG:
- Earnings per share: $1.74 adjusted vs. $1.30 expected
- Income: $21.4 billion versus $20.83 billion expected
For the period ended Sept. 30, the company reported net income of $1.31 billion, or $1.55 per share, compared with $1.99 billion, or $1.80 per share, the year before. Taking into account non-recurring items, including the costs of its transformation strategy, the company reported profit of $1.48 billion, or $1.74 per share.
UPS estimates fourth-quarter revenue at $24 billion with an operating margin of between 11% and 11.5%.
The company also outlined details of its previously announced turnaround plan on Tuesday and said it had cut its workforce by 34,000 jobs, more than its previous estimate of 20,000, as part of its plan to reduce its workforce with Amazonpreviously its biggest customer.
UPS also initiated a sale-leaseback transaction in the third quarter for five properties as part of its broader strategy, which resulted in a $330 million pre-tax gain on the sale of its supply chain solutions division. It said Tuesday it has now closed daily operations in 93 leased and owned buildings through September as part of the initiative.
UPS said its turnaround plan has delivered $2.2 billion in savings through the end of the third quarter, with an estimated $3.5 billion in total year-over-year savings in 2025.
“We are making the most significant strategic change in our company’s history, and the changes we are implementing are designed to deliver long-term value for all stakeholders,” said CEO Carol Tomé. “As we approach the holiday shipping season, we are positioned to reach the most efficient peak in our history while providing industry-leading service to our customers for the eighth consecutive year.”
The courier’s strong results come as the parcel sector faces a volatile pricing environment and sluggish demand, in addition to the impacts of the end of the de minimis loophole. Rival FedEx said last month it faced $150 million in headwinds from the global business environment.