United Parcel Service, Inc. · NYSE:UPS
United Parcel Service — Q3 2026 Earnings Presentation
29 slides from United Parcel Service's earnings presentation, Oct 27, 2026
Slide 1: 3Q26 Earnings Call
3Q26 Earnings Call October 27, 2026
Slide 2: UPS Speakers
UPS Speakers CAROL B. TOMÉ BRIAN DYKES PJ GUIDO Chief Executive Officer Chief Financial Officer Investor Relations Officer 2 © 2026 United Parcel Service of America, Inc. UPS, the UPS brandmark, and the color dark brown tone are trademarks of United Parcel Service of America, Inc. All rights reserve
Slide 3: Forward-Looking Statements and Non-GAAP Reconciliations
Forward -Looking Statements and Non -GAAP Reconciliations Forward-Looking Statements alliances; the effects of changing prices of energy, including gasoline, diesel, jet fuel, other fuels and interruptions in supplies of these commodities; changes in This presentation and our filings with the Securi
Slide 4: Diluted EPS 3Q26 3Q25
Diluted EPS 3Q26 3Q25 $0.29 $0.21 $1.74 $1.69 -$0.04 -$0.10 $0.15 $1.55 $1.37 3Q26 EPS Transformation Goodwill and Asset Gain on Sales 3Q26 Non -GAAP 3Q25 EPS Transformation Reversal of Income 3Q25 Non -GAAP Strategy Impairment of Assets Adj. EPS* Strategy Tax Allowance Adj. EPS* Costs** Costs** *No
Slide 5: Carol B. Tomé, Chief Executive Officer
CAROL B. TOMÉ Chief Executive Officer © 2026 United Parcel Service of America, Inc. UPS, the UPS brandmark, and the color dark brown tone are trademarks of United Parcel Service of America, Inc. All rights reserved. 5
Slide 6: Thank You UPSers
THANK YOU UPSERS © 2026 United Parcel Service of America, Inc. UPS, the UPS brandmark, and the color dark brown tone are trademarks of United Parcel Service of America, Inc. All rights reserved. 6
Slide 7: Our 3Q Financial Results Marked Another Quarter of Strong Performance
Our 3Q Financial Results Marked Another Quarter of Strong Performance HEADLINE Revenue grew Y/Y across all three segments 3Q26 Consolidated Results “We’re driving more premium growth, 3Q26 3Q25 Change Y/Y improving revenue quality and mix, and Revenue ($ Ms) $22,853 $21,415 6.7% creating greater ope
Slide 8: In September, We Announced a New Global Operating Model
In September, We Announced a New Global Operating Model MATT GUFFEY Under this approach, U.S. Domestic Businesses UPS is: • Serving our customers with greater consistency, agility, and scale WILFREDO RAMOS International, Global Healthcare, • Standardizing critical operational Forwarding & Logistics
Slide 9: New Operating Model Will Strengthen Performance Through Premium Growth
Our New Operating Model Will Strengthen Business Performance Through Premium Growth in Complex Logistics and a More Efficient Global Network ~10% of total U.S. small package volume originates at The UPS Store U.S. SMB and Enterprise customers can offer no -box, no -label returns Domestic through Hap
Slide 10: Network More Automated and Efficient to Handle the Holiday Surge
1 0 Our Network is More Automated , More Efficient and Better Positioned Than Ever to Handle the Holiday Surge • A little over 100 U.S. customers drive ~80% of our peak volume surge each year • Expect U.S. average daily volume to increase ~25% from 3Q to 4Q • Investments in our network enable us to
Slide 11: We Expect the Momentum We've Built to Continue
We Expect the Momentum We’ve Built to Continue Raising our full -year 2026 outlook Full -year 2026 Consolidated Guidance Revenue ~$92.6B Non -GAAP adj. operating profit * ~$8.75B © 2026 United Parcel Service of America, Inc. UPS, the UPS brandmark, and the color dark brown tone are trademarks of Uni
Slide 12: Brian Dykes, Chief Financial Officer
BRIAN DYKES Chief Financial Officer © 2026 United Parcel Service of America, Inc. UPS, the UPS brandmark, and the color dark brown tone are trademarks of United Parcel Service of America, Inc. All rights reserved. 12
Slide 13: Average Daily Volume Growth From SMB and Certain Enterprise Customers
U.S. U.S. Domestic Domestic Average Daily Volume Growth From SMB and Certain Enterprise Customers Was Up More Than 200,000 Pieces Per Day Y/Y SMB % of Total Volume (Y/Y) • SMB and certain Enterprise customers increased Ground ADV by 2.1% Y/Y 35.1% 34.5% 34.5% • Air ADV from SMB and these Enterprise
Slide 14: U.S. Domestic Generated $14.9B in Revenue, Up 4.5% Y/Y
U.S. Domestic Generated $14.9B in Revenue, an Increase of 4.5% Y/Y Driven by strong RPP growth Revenue Change (+4.5% Y/Y) $0.8B $0.1B $14.9B $14.2B -$0.2B Revenue per piece (RPP) increased 6.1 % Y/Y: • About half of RPP growth driven by base rates and customer mix improvements • Higher fuel rates co
Slide 15: U.S. Domestic Delivered Over $1B in Non-GAAP Adj. Operating Profit
U.S. Domestic HEADLINE Delivered Over $1B in Non -GAAP Adj. Operating Profit *, Up 14.3% Y/Y • Total non -GAAP adj. operating expense * 3Q26 U.S. Domestic Results increased 3.9% Y/Y 3Q26 3Q25 Change Y/Y • Increase primarily came from fuel Revenue ($ Ms) $14,865 $14,220 4.5% and purchased transportat
Slide 16: International Returned to Y/Y Non-GAAP Adj. Operating Profit Growth
International International Delivered Strong Revenue Growth and Returned to Y/Y Non -GAAP Adj. Operating Profit * Growth For the First Time in Six Quarters Total Asia * Monthly ADV (Y/Y) Total Europe Monthly ADV (Y/Y) 30.0% 15.0% 20.0% 10.0% 5.0% 10.0% 0.0% 0.0% -5.0% -10.0% -10.0% -20.0% -15.0% Jan
Slide 17: International Increased Revenue 7.1% Y/Y
International HEADLINE Increased Revenue 7.1% Y/Y, Driven by Strong Revenue -Per-Piece Growth • Revenue per piece increased 15.0% 3Q26 International Results Y/Y, with around half coming from fuel 3Q26 3Q25 Change Y/Y • Fuel surcharges helped to offset higher Revenue ($ Ms) $5,007 $4,673 7.1% fuel ex
Slide 18: Supply Chain Solutions Strong Revenue Growth on Premium Volume
Supply Chain Solutions HEADLINE Delivered Strong Revenue Growth Y/Y Driven By a Focus on Premium Volume • Forwarding revenue increased 17.5% Y/Y, driven by higher rates in International Air Freight and Ocean Freight • Ocean grew shipments in the quarter 3Q26 Supply Chain Solutions Results • Logistic
Slide 19: Strong YTD cash flow and liquidity
Strong YTD cash flow and liquidity Cash from Operations Free Cash Flow * $6.0B $4.2B Including payments made for the Driver Choice Program Cash on the balance sheet Dividends Paid $6.8B No outstanding $4.1B commercial paper $1.3B in bonds issued to refinance a debt maturity and to complete a pension
Slide 20: Lifting Our Full-year Outlook and Raising Fourth-quarter Expectations
Lifting Our Full -year Outlook and Raising Our Fourth -quarter Revenue and Non -GAAP Adj. Operating Profit * Expectations Full -year 2026 Guidance 4Q26 Guidance • Revenue ~$92.6B • Revenue ~$25.7B • Non -GAAP adj. operating profit * ~$8.75B • Non -GAAP adj. operating profit * ~$3.3B Consolidated • N
Slide 21: Questions & Answers
Questions & Answers 21
Slide 22: Appendix
Appendix 22
Slide 23: Reconciliation of GAAP and Non-GAAP Financial Measures
Reconciliation of GAAP and Non-GAAP Financial Measures Reconciliation of GAAP and Non-GAAP Adjusted Financial Measures and $1.9 billion in total costs, as a part of these initiatives. While the planned volume reductions from our largest customer were completed in the second quarter of 2026, our Effi
Slide 24: Reconciliations
Reconciliations © 2026 United Parcel Service of America, Inc. UPS, the UPS brandmark, and the color dark brown tone are trademarks of United Parcel Service of America, Inc. All rights reserved. 24
Slide 25: Reconciliations
Reconciliations © 2026 United Parcel Service of America, Inc. UPS, the UPS brandmark, and the color dark brown tone are trademarks of United Parcel Service of America, Inc. All rights reserved. 25
Slide 26: Reconciliations
Reconciliations © 2026 United Parcel Service of America, Inc. UPS, the UPS brandmark, and the color dark brown tone are trademarks of United Parcel Service of America, Inc. All rights reserved. 26
Slide 27: Reconciliations
Reconciliations © 2026 United Parcel Service of America, Inc. UPS, the UPS brandmark, and the color dark brown tone are trademarks of United Parcel Service of America, Inc. All rights reserved. 27
Slide 28: Reconciliations
Reconciliations © 2026 United Parcel Service of America, Inc. UPS, the UPS brandmark, and the color dark brown tone are trademarks of United Parcel Service of America, Inc. All rights reserved. 28
Slide 29: Reconciliations
Reconciliations © 2026 United Parcel Service of America, Inc. UPS, the UPS brandmark, and the color dark brown tone are trademarks of United Parcel Service of America, Inc. All rights reserved. 29
United Parcel Service — Q3 2026 Earnings Presentation on 6ix