UPS Surpasses Q3 Earnings Estimates, Stock Rises 17%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2h ago
0mins
Source: Fool
- Earnings Beat: UPS reported Q3 revenue of $21.4 billion, exceeding analyst expectations of $20.8 billion despite a 2.6% year-over-year decline, indicating resilience in challenging times and potentially laying the groundwork for future growth.
- Profitability Improvement: The adjusted earnings per share reached $1.74, significantly surpassing the expected $1.30, demonstrating substantial progress in cost control and operational efficiency, which enhances investor confidence.
- Strategic Restructuring: UPS reduced its workforce by 34,000 in the first nine months of 2025, exceeding the initial forecast of 20,000, reflecting the company's commitment to optimizing operations and reducing costs, which is expected to boost future profitability.
- Dividend Appeal: Although free cash flow was $2.7 billion, lower than the $4 billion in dividends paid, management's support for the dividend program reassures income investors, with expectations of generating significantly more free cash flow in the future to sustain dividend payments.
UPS
$99.68+Infinity%1D
Analyst Views on UPS
Wall Street analysts forecast UPS stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for UPS is 103.40 USD with a low forecast of 75.00 USD and a high forecast of 122.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
20 Analyst Rating
9 Buy
8 Hold
3 Sell
Moderate Buy
Current: 100.540
Low
75.00
Averages
103.40
High
122.00
Current: 100.540
Low
75.00
Averages
103.40
High
122.00
About UPS
United Parcel Service, Inc. provides a range of integrated logistics solutions for customers in more than 200 countries and territories. Its U.S. Domestic Package segment offers a range of United States domestic air and ground package transportation services. Its air portfolio offers time-definite, same-day, next-day, two-day and three-day delivery alternatives as well as air cargo services. Its ground network enables customers to ship using its day-definite ground service. UPS SurePost provides residential ground service for customers with non-urgent, lightweight residential shipments. Its International Package segment consists of small package operations in Europe, Indian sub-continent, Middle East and Africa, Canada and Latin America and Asia. It offers a selection of guaranteed day- and time-definite international shipping services. Its supply chain solutions consist of forwarding, logistics, customized third-party logistics and specialized cold chain transportation solutions.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
