UPS raises 2026 revenue target to $92.6 billion after supply chain surge

United Parcel Service raised its full-year revenue forecast to approximately $92.6 billion on Tuesday, marking a second consecutive quarterly increase in its annual outlook. The new target exceeds the company's previous projection of $91.2 billion. This adjustment follows strong third-quarter results that surpassed analyst expectations, driven primarily by expansion in its supply chain solutions business.

The company reported net income of $1.16 billion, or $1.37 per share, for the quarter ended September 30. This figure declined slightly from the $1.31 billion, or $1.55 per share, recorded in the same period last year. After adjusting for one-time expenses, UPS posted earnings per share of $1.69, which exceeded the $1.63 consensus estimate from LSEG analysts. Total revenue for the quarter reached $22.9 billion, topping the expected $22.29 billion.

Growth was uneven across the company's segments. Domestic revenue increased by 4.5%, while international revenue rose by 7.1%. The supply chain solutions division saw the steepest climb, with revenue up 18.2%. UPS attributed this surge to growth in forwarding and logistics, specifically within the healthcare sector. This performance contrasts with the company's earlier guidance, which had projected flat domestic revenue and a decline in average daily volume due to seasonal factors and reduced Amazon volume.

Shares of UPS traded slightly higher in premarket sessions following the announcement. The carrier is currently executing a turnaround strategy under CEO Carol Tomé, focused on streamlining operations and expanding automation. Tomé stated that the company is entering the holiday shipping season from a position of strength, citing its network as the most automated and efficient in its history.

UPS also provided its outlook for the final quarter of the year, projecting revenue of $25.7 billion. This fourth-quarter target supports the revised annual figure of $92.6 billion. The company has now adjusted its guidance upward for two straight quarters, reflecting improved momentum in its higher-growth business lines.