UPS lifts full year revenue forecast

United Parcel Service raised its full year revenue projection on Tuesday, a move that followed an earlier increase issued last quarter. The company now expects consolidated revenue of approximately $92.6 billion for the year, up from the previous estimate of $91.2 billion. This updated forecast includes a specific projection of $25.7 billion in revenue for the fourth quarter.

UPS posted third quarter results that exceeded analyst expectations. The company reported adjusted earnings per share of $1.69, which surpassed the $1.63 consensus estimate from LSEG. Total revenue reached $22.9 billion, beating the expected figure of $22.29 billion. Net income stood at $1.16 billion, or $1.37 per share, a slight decrease from the $1.31 billion, or $1.55 per share, reported in the same period last year.

Domestic revenue increased by 4.5 percent during the quarter. The international segment saw a 7.1 percent rise in revenue. The supply chain solutions business posted the strongest growth at 18.2 percent. UPS attributed this surge primarily to expansion in forwarding and logistics, including the healthcare sector. These results contrast with earlier internal expectations for flat domestic revenue and lower daily volumes due to seasonal factors and the continued shift in business from Amazon.

Shares of the company traded higher in premarket sessions following the announcement. CEO Carol Tomé stated that the company is entering the holiday shipping season from a position of strength. She noted that the network is currently the most automated and efficient in the company's history. The statement reflected the ongoing strategic focus on leaner operations and automation under Tomé's leadership.