UPS delivers strong third-quarter earnings beat

United Parcel Service (UPS) jumped as much as 17.7% in premarket trading after reporting better-than-expected Q3 results, signaling progress in its sweeping turnaround plan.

The logistics giant reported:

Adjusted EPS: $1.74 vs. $1.32 expected
Revenue: $21.4 billion, topping forecasts
Q4 guidance: around $24 billion, above analysts’ $23.8 billion projection

CEO commentary

UPS CEO Carol Tomé emphasized that the company is undergoing the most significant strategic shift in its history, with an emphasis on long-term value creation and operational excellence.
She stated:

“We are executing the most significant strategic shift in our company’s history, and the changes we are implementing are designed to deliver long-term value for all stakeholders. With the holiday shipping season nearly upon us, we are positioned to run the most efficient peak in our history while providing industry-leading service to our customers for the eighth consecutive year.”

Cost-cutting and efficiency drive

UPS’s turnaround strategy has been laser-focused on improving margins through:

Workforce reductions: ~34,000 job cuts in 2025
Facility consolidation: closure and merging of multiple packaging sites
Operational streamlining: trimming less-profitable deliveries, particularly from Amazon
Targeted savings: aiming for $3.5 billion in total cost savings by 2025

These actions are now flowing through to the bottom line, helping offset demand softness and competitive pressures.

Outlook

With the holiday shipping season approaching, UPS expects its optimized network and technology-driven logistics to yield record-level efficiency.
Investors welcomed the stronger guidance and operational discipline, viewing it as a major confidence signal in the company’s long-term earnings trajectory.