Sample analysis · Full UPS Q3 2026 profileEvidence. Explanation. Implications.

UPS is earning more from the business it chooses to carry

UPS’s premium strategy is beginning to show up in the economics of its network. U.S. volumes excluding Amazon grew 1.8%, revenue per parcel rose faster than cost, and both package divisions increased adjusted profit. Supply Chain Solutions also improved after removing last year’s identified property gain. The strategic opportunity is to replace low-return traffic with healthcare, technology and smaller-business customers while processing those shipments with fewer resources. Q3 provides evidence of progress; the next phase requires that improvement to continue after the unusually strong Amazon mix benefit fades.

UPS · Global reporting · Q3 and nine months ended 30 September 2026 · Reviewed 2026-10-28

The profit decline conceals improvement across all three divisions

Reported operating profit · USD million · Q3

1,804.0 USD millionPrior-year reported operating profitQ3 2025 1,744.0 USD millionReported group operating profitQ3 2026

Prior-year reported operating profit1,804.0

Reported group operating profit1,744.0

Reported operating profit fell from $1.804bn to $1.744bn. Company-adjusted profit also declined, from $2.132bn to $2.054bn. But the prior adjusted figure includes a $330m property gain. Removing that identified gain leaves $1.802bn, so the current result is 14.0% higher on that comparison. U.S. Domestic contributes $129m of improvement, International $55m and Supply Chain Solutions $68m.

The recovery is broader than the headline suggests: all three businesses contribute on this defined comparison. The strongest absolute gain comes from U.S. Domestic, where customer selection and network resizing are starting to work together. Current company-adjusted profit already excludes the impairment, transformation costs and aircraft gain; the additional prior-year property adjustment makes the earnings trajectory easier to see without presenting every reported dollar as recurring.

Global group. The identified-item comparison is Freight Insider analysis, not another company-reported adjusted measure. It removes the named 2025 property gain; other timing and operating effects remain.

United Parcel Service, Inc. · UPS management; transcript hosted by Investing.com

Replacing Amazon traffic is improving the U.S. network’s economics

Average daily US Domestic packages · thousands

16,150.0 thousand packages/dayPrior-year average daily domestic packagesQ3 2025 15,621.0 thousand packages/dayAverage daily domestic packagesQ3 2026

Prior-year average daily domestic packages16,150.0

Average daily domestic packages15,621.0

U.S. Domestic average daily volume fell from 16.15m to 15.62m packages, while volumes excluding Amazon grew 1.8%. SMB volume rose 3.7%, taking smaller businesses and platforms to 35.1% of U.S. volume. Revenue per parcel increased 6.1%, against 5.5% growth in adjusted cost per parcel, supporting 14.3% adjusted operating-profit growth.

The improvement is not simply higher list prices: about half of the revenue-per-parcel increase came from fuel, with base rates and customer mix supplying the other half. As the Amazon reduction passes through the comparison, management expects a more normal 2–3% contribution from base rates and mix. Continued profit growth will therefore depend more on winning valuable shipments and containing processing cost. The B2B transition is still incomplete: total B2B volume fell, and management attributes 60% of that decline to Amazon.

U.S. Domestic Package. SMB and B2B are overlapping categories, not interchangeable measures. Quarter had 65 operating days versus 64; average daily volume avoids confusing that extra day with demand growth.

United Parcel Service, Inc. · UPS management; transcript hosted by Investing.com

Profitable Asian lanes are improving International’s traffic mix

International revenue · USD million · Q3

4,673.0 USD millionPrior-year International revenueQ3 2025 5,007.0 USD millionInternational revenueQ3 2026

Prior-year International revenue4,673.0

International revenue5,007.0

International revenue increased from $4.67bn to $5.01bn, while adjusted profit rose from $691m to $746m. Total average daily volume fell 8.7%, but Asia-to-Asia exports grew 8.4% and inbound U.S. volumes returned to year-on-year growth in September. Management identifies these as important profitable lanes. The new Clark air hub improves transit times across more than 1,100 lanes, reinforcing service for high-value manufacturing, technology and healthcare customers.

UPS is redirecting an integrated network toward traffic with better economics as trade patterns change. That helps explain why fewer packages can still produce higher profit. The 14.9% adjusted margin is improving, but the 20% Q4 expectation also benefits from peak volumes and demand surcharges. The durable opportunity is to retain the better lane mix and faster connections beyond that seasonal uplift, rather than treating the peak margin as the new year-round baseline.

Global International Package; Asia-to-Asia is a specific trade-lane measure. Revenue per parcel rose 15%, about half from fuel. No Europe-wide market conclusion is inferred from the segment total.

United Parcel Service, Inc. · UPS management; transcript hosted by Investing.com

Healthcare and technology give Supply Chain Solutions a larger role

Reported Supply Chain Solutions operating profit · USD million

525.0 USD millionPrior-year reported Supply Chain Solutions operating profitQ3 2025 92.0 USD millionReported Supply Chain Solutions operating profitQ3 2026

Prior-year reported Supply Chain Solutions operating profit525.0

Reported Supply Chain Solutions operating profit92.0

Supply Chain Solutions reported profit fell from $525m to $92m, reflecting last year’s $330m property gain and this year’s $182m impairment. On company-adjusted results with that prior gain removed, profit rises from $206m to $274m and margin from 8.2% to 9.2%. Healthcare revenue across UPS exceeded $3bn for a third consecutive quarter; the new Amsterdam facility brings forwarding, customs and healthcare cold chain together.

This is a route to win a larger share of complex customer supply chains, combining forwarding, storage and parcel delivery. Technology extends the same proposition into data-centre equipment and associated shipments: management reports 30% growth in U.S. high-tech small-package business from a small base and estimates a $15bn data-centre logistics opportunity. The strategic fit is credible because UPS can connect those services; the current evidence of return is the improved divisional profit, not the size of management’s market estimate.

Healthcare revenue spans all UPS segments and must not be added to Supply Chain Solutions revenue. The $15bn figure is a management market estimate, not UPS revenue, a contract pipeline or a Freight Insider market-size assessment. High-tech growth basis was not specified as revenue or volume.

United Parcel Service, Inc. · UPS management; transcript hosted by Investing.com

RFID and the global operating model extend productivity beyond the Amazon reset

Transformation strategy costs · USD million · Q3

328.0 USD millionPrior-year transformation costsQ3 2025 171.0 USD millionTransformation strategy costsQ3 2026

Prior-year transformation costs328.0

Transformation strategy costs171.0

Quarterly transformation charges fell from $328m to $171m. Programme benefits total $1.8bn through September, leaving $1.2bn to deliver in Q4 against the $3bn annual target. Management links that concentration to labour hours leaving with Amazon volume, completed building changes and the final driver exits. The next productivity programme reaches upstream: RFID labels at 315 customer sites already cover 3m packages a day, with 6m planned for 2027.

Labelling at the customer removes manual scans and pickup ambiguity before a parcel reaches the UPS network. The new global operations structure creates a route to transfer those practices across countries, helping volume grow faster than the resources needed to handle it. Commercial channels complement that effort: the Digital Access Program generated $1.4bn globally, with air services and ground-commercial traffic nearly 30% of its volume. UPS is building both the routes to acquire higher-value customers and the operating system to serve them efficiently.

Programme benefits, accounting charges and cash payments are different measures. RFID expansion is management’s plan; no savings amount is assigned to it. The new structure itself has no quantified synergy benefit here.

United Parcel Service, Inc. · UPS management; transcript hosted by Investing.com

Peak can lift margins, but cash flexibility still depends on execution

Adjusted operating-profit guidance · USD million · FY2026

8,650.0 USD millionPrevious adjusted operating-profit guidanceFY 2026 guidance atQ2 8,750.0 USD millionUpdated adjusted operating-profit guidanceFY 2026 guidance

Previous adjusted operating-profit guidance8,650.0

Updated adjusted operating-profit guidance8,750.0

Full-year adjusted operating-profit guidance rises from $8.65bn to $8.75bn. Q4 expects $3.3bn, with U.S. daily volumes 25% above Q3 but 1.3% below last year. Lower Amazon traffic reduces the need for rented vehicles, leased aircraft and rapid seasonal hiring, giving the redesigned network a chance to handle peak more efficiently. The key test is delivering the remaining cost benefits while maintaining service.

The $6.1bn free-cash-flow outlook exceeds planned dividends by $700m, but includes a $450m pension contribution made with UPS bonds instead of cash. A cash-funded equivalent would leave only $250m on that illustration. Driver Choice payments of $1.4bn should cease after 2026, improving the future cash base, although pension funding can absorb part of that relief. Continued domestic margin improvement matters because it increases financial flexibility without relying on a repeated funding choice.

Management guidance, not delivered results. Pension illustration is Freight Insider arithmetic, not revised guidance. Driver Choice cash expenditure is not added to the separate transformation-benefit figure.

United Parcel Service, Inc. · UPS management; transcript hosted by Investing.com

Outlook & what would change it

Freight Insider assessment

UPS is moving from a volume-reduction programme into a customer-and-productivity growth strategy. The strongest evidence is the combination of growing non-Amazon traffic and a positive revenue/cost spread. Healthcare, technology and digital channels can broaden that growth, while RFID and a common global operating model can reduce the resources required to serve it. The next proof is sustaining those gains as the exceptional customer-mix benefit moderates, with cash generation improving after the restructuring payments end.

Countercase

Fuel surcharges and the Amazon mix shift explain part of the current unit-revenue improvement; a slower premium pipeline would expose the cost base as those effects fade. B2B volume is still declining overall. Peak service or productivity shortfalls could delay the remaining programme benefits, while pension funding could absorb part of the expected cash relief after Driver Choice. Technology-market opportunities and RFID targets should be judged against delivered customer growth and cost outcomes.

Q3 2026 global company analysis. Official Q3 and Q2 releases provide financial comparisons; the full 27 October earnings-call transcript, including all Q&A, supplies management’s strategic detail. U.S. Domestic and specific international lanes retain their disclosed scope. Management ambitions are distinguished from achieved results; strategic implications and identified-item comparisons are Freight Insider assessments.

Linked Evidence

Reported group operating profit · 1,744.0 USD million

Q3 2026 · UPS reported global group/segment perimeter, as identified in the source cell; not a European market total

Where is the improvement after the property comparison removed?

U.S. Domestic adds $129m, International $55m and Supply Chain Solutions $68m on the identified-item comparison, totalling $252m. That supports a recovery spread across the businesses, with U.S. Domestic supplying just over half of the increase.

Divisional contribution to the $252m increase
Measure	Value and unit	Period
U.S. Domestic adjusted profit increase · Q3 year-on-year	129.0 USD million	Q3 year-on-year
International adjusted profit increase · Q3 year-on-year	55.0 USD million	Q3 year-on-year
Supply Chain Solutions increase after removing prior identified property gain · Q3 year-on-year	68.0 USD million	Q3 year-on-year
Group profit increase on identified-item comparison · Q3 year-on-year	252.0 USD million	Q3 year-on-year

Company-adjusted profit, with the prior Supply Chain Solutions property gain additionally removed. Not a fully normalised recurring-profit series.

Exact value, inputs and sources

Prior-year reported operating profit · 1,804.0 USD million

Q3 2025 · UPS reported global group/segment perimeter, as identified in the source cell; not a European market total

What accounting effects separate reported and adjusted profit?

Current reported profit of $1,744m becomes $2,054m after adding $171m transformation costs and $182m impairment, then removing the $43m aircraft gain. Last year’s company-adjusted $2,132m still includes a $330m property gain. The two years therefore require different identified adjustments before assessing the operating direction.

Operating-profit reconciliation and prior-year comparison
Measure	Value and unit	Period
Transformation strategy costs · Q3 2026	171.0 USD million	Q3 2026
Supply Chain Solutions goodwill/asset impairment · Q3 2026	182.0 USD million	Q3 2026
Gain on aircraft-asset sales · Q3 2026	43.0 USD million	Q3 2026
Adjusted group operating profit · Q3 2026	2,054.0 USD million	Q3 2026
Prior-year adjusted operating profit · Q3 2025	2,132.0 USD million	Q3 2025
Prior-year Supply Chain Solutions sale-leaseback gain · Q3 2025	330.0 USD million	Q3 2025

All amounts are pre-tax operating-profit items. After-tax amounts in the release are not substituted into this bridge.

Exact value, inputs and sources

Transformation strategy costs · 171.0 USD million

Q3 2026 · UPS reported global group/segment perimeter, as identified in the source cell; not a European market total

What operating benefits are being delivered against the restructuring cost?

Benefits of $1.8bn through September leave $1.2bn in Q4 to reach $3bn. Management links that final 40% to the timing of volume-related labour reductions, building exits and completed driver departures. Those are concrete operating mechanisms behind the earnings plan.

Delivered benefits and the remaining peak-quarter requirement
Measure	Value and unit	Period
Nine-month programme benefits · 9M 2026	1,800.0 USD million	9M 2026
Full-year programme-benefit expectation · FY 2026 outlook	3,000.0 USD million	FY 2026 outlook
Benefits required in Q4 to reach annual target · Q4 2026 implied	1,200.0 USD million	Q4 2026 implied
Expected U.S. average-daily-volume increase · Q4 2026 management outlook	25.0 % versus Q3	Q4 2026 management outlook

Benefits are a management programme measure, not an additional amount to add to reported EBIT. Q4 has not yet been delivered.

Exact value, inputs and sources

Average daily domestic packages · 15,621.0 thousand packages/day

Q3 2026 · UPS reported global group/segment perimeter, as identified in the source cell; not a European market total

Is the smaller U.S. network earning more per unit of activity?

Revenue per parcel rose 6.1%, exceeding adjusted cost-per-parcel growth of 5.5%. Adjusted operating profit increased from $905m to $1,034m. The positive spread shows that customer selection and productivity more than compensated for lower daily volume in this quarter.

Unit economics and resulting domestic profit
Measure	Value and unit	Period
Domestic revenue-per-piece growth · Q3 2026	6.1 %	Q3 2026
Adjusted domestic cost-per-piece growth · Q3 2026	5.5 %	Q3 2026
Revenue-per-piece growth less adjusted cost-per-piece growth · Q3 2026	0.6 percentage points	Q3 2026
Prior-year adjusted domestic operating profit · Q3 2025	905.0 USD million	Q3 2025
Adjusted domestic operating profit · Q3 2026	1,034.0 USD million	Q3 2026

Growth spread is 0.6 percentage points, not a 0.6% cost reduction. Cost per piece excludes cargo and other activity, as disclosed by UPS.

Exact value, inputs and sources

Prior-year average daily domestic packages · 16,150.0 thousand packages/day

Q3 2025 · UPS reported global group/segment perimeter, as identified in the source cell; not a European market total

Has UPS grown business beyond the deliberate Amazon reduction?

Core volume excluding Amazon grew 1.8%, while SMB shipments grew 3.7%. That is evidence that the company is adding replacement traffic rather than relying solely on cuts. It is still a partial replacement: total U.S. daily volume remains lower and B2B volume has not yet turned positive.

Replacement customer growth and the remaining B2B weakness
Measure	Value and unit	Period
Core average-daily-volume growth excluding Amazon · Q3 2026	1.8 %	Q3 2026
SMB average-daily-volume growth · Q3 2026	3.7 %	Q3 2026
SMB share of total U.S. volume · Q3 2026	35.1 %	Q3 2026
Amazon share of the B2B volume decline · Q3 2026	60.0 % of B2B decline	Q3 2026

SMB and core volume overlap and are not added.60% is Amazon’s share of the B2B decline, not B2B’s decline rate.

Exact value, inputs and sources

Domestic revenue-per-piece growth · 6.1 %

Q3 2026 · UPS reported global group/segment perimeter, as identified in the source cell; not a European market total

What remains when fuel and the Amazon mix effect moderate?

About half of current revenue-per-parcel growth is fuel. Management expects base rates and mix to contribute 2–3% going forward as the boost from reducing Amazon fades. With current adjusted cost per parcel up 5.5%, sustaining a positive spread requires continued productivity and a better customer mix;6.1% should not be extrapolated as pure pricing.

Forward pricing/mix expectation and current processing cost
Measure	Value and unit	Period
Expected base-rate and mix contribution: lower end · Forward management expectation at 27 October 2026	2.0 % growth	Forward management expectation at 27 October 2026
Expected base-rate and mix contribution: upper end · Forward management expectation at 27 October 2026	3.0 % growth	Forward management expectation at 27 October 2026
Prior-year adjusted domestic cost per piece · Q3 2025	12.6 USD/piece	Q3 2025
Adjusted domestic cost per piece · Q3 2026	13.3 USD/piece	Q3 2026
Adjusted domestic cost-per-piece growth · Q3 2026	5.5 %	Q3 2026

Forward expectation is not a 2027 guidance commitment. Current costs also include fuel effects, so these rows are not a forecast of a future shortfall.

Exact value, inputs and sources

International revenue · 5,007.0 USD million

Q3 2026 · UPS reported global group/segment perimeter, as identified in the source cell; not a European market total

How much of the margin improvement could be seasonal?

Adjusted margin improved from 12.4% in Q2 to 14.9% in Q3. The 20% Q4 expectation adds a peak-season volume surge and demand surcharges to the better lane mix. Q3 demonstrates operating progress; the additional peak uplift should not be treated as a permanent margin level.

Quarterly margin progression and peak outlook
Measure	Value and unit	Period
Q2 International adjusted operating margin · Q2 2026	12.4 %	Q2 2026
International adjusted operating margin · Q3 2026	14.9 %	Q3 2026
Expected International adjusted operating margin · Q4 2026 management outlook	20.0 %	Q4 2026 management outlook
International average-daily-volume change · Q3 2026	-8.7 %	Q3 2026

Q4 is management guidance. The segment covers worldwide international operations, not European operations alone.

Exact value, inputs and sources

Prior-year International revenue · 4,673.0 USD million

Q3 2025 · UPS reported global group/segment perimeter, as identified in the source cell; not a European market total

Which traffic is replacing the weaker International volumes?

Asia-to-Asia export growth of 8.4% and the September return to inbound U.S. growth contrast with an 8.7% decline in total International daily volume. UPS is recovering in lanes management identifies as especially profitable, allowing mix to improve before the total package count does.

Total volume pressure versus profitable-lane growth
Measure	Value and unit	Period
International average-daily-volume change · Q3 2026	-8.7 %	Q3 2026
Asia-to-Asia export-volume growth · Q3 2026	8.4 %	Q3 2026
Prior-year adjusted International operating profit · Q3 2025	691.0 USD million	Q3 2025
Adjusted International operating profit · Q3 2026	746.0 USD million	Q3 2026

Trade-lane growth and segment volume use different populations. No weighted contribution or Europe-wide conclusion is inferred.

Exact value, inputs and sources

Reported Supply Chain Solutions operating profit · 92.0 USD million

Q3 2026 · UPS reported global group/segment perimeter, as identified in the source cell; not a European market total

What is improving beneath this year’s impairment?

After the impairment is removed, Supply Chain Solutions earns $274m at a 9.2% margin. Forwarding revenue grows 17.5% and logistics 17.2%, with different drivers: freight rates and ocean shipments in forwarding, healthcare activity in logistics. Both contribute to a broader service platform for premium customers.

Adjusted profitability and the two principal revenue streams
Measure	Value and unit	Period
Supply Chain Solutions goodwill/asset impairment · Q3 2026	182.0 USD million	Q3 2026
Adjusted Supply Chain Solutions operating profit · Q3 2026	274.0 USD million	Q3 2026
Current Supply Chain Solutions adjusted operating margin · Q3 2026	9.2 %	Q3 2026
Forwarding revenue growth · Q3 2026	17.5 %	Q3 2026
Logistics revenue growth · Q3 2026	17.2 %	Q3 2026

Revenue growth is not isolated profit growth by activity. The impairment remains a real GAAP charge; adjustment does not erase the investment outcome.

Exact value, inputs and sources

Prior-year reported Supply Chain Solutions operating profit · 525.0 USD million

Q3 2025 · UPS reported global group/segment perimeter, as identified in the source cell; not a European market total

Why is last year’s Supply Chain Solutions profit an inflated operating benchmark?

The $330m sale-leaseback gain remains in the company’s prior adjusted $536m result. Removing it gives $206m, against $274m today. The prior reported $525m headline therefore overstates the earnings base against which to assess current trading.

Prior-year property gain and current trading comparison
Measure	Value and unit	Period
Prior-year Supply Chain Solutions sale-leaseback gain · Q3 2025	330.0 USD million	Q3 2025
Prior-year adjusted Supply Chain Solutions operating profit · Q3 2025	536.0 USD million	Q3 2025
Prior adjusted Supply Chain Solutions profit excluding identified gain · Q3 2025	206.0 USD million	Q3 2025
Adjusted Supply Chain Solutions operating profit · Q3 2026	274.0 USD million	Q3 2026

FI identified-item comparison. Current adjusted profit excludes the $182m impairment; prior reported profit also contains transformation costs.

Exact value, inputs and sources

Prior-year transformation costs · 328.0 USD million

Q3 2025 · UPS reported global group/segment perimeter, as identified in the source cell; not a European market total

Have lower quarterly charges completed the cash cost of the reset?

UPS has already incurred $1.4bn of programme charges in nine months and expects $1.4–1.6bn for the year. Separately, Driver Choice cash expenditure is $1.4bn this year. A lower Q3 charge therefore marks a later stage of the programme, not a complete measure of its cash demand.

Programme expense and separate cash commitment
Measure	Value and unit	Period
Programme costs incurred in 2026 · 9M 2026	1,400.0 USD million	9M 2026
Expected full-year programme costs: lower · FY 2026 outlook	1,400.0 USD million	FY 2026 outlook
Expected full-year programme costs: upper · FY 2026 outlook	1,600.0 USD million	FY 2026 outlook
Driver Choice cash expenditure · FY 2026 management statement	1,400.0 USD million	FY 2026 management statement

Expenses and payments overlap and must not be added. The quarterly charge is not the year’s total transformation cost.

Exact value, inputs and sources

Updated adjusted operating-profit guidance · 8,750.0 USD million

FY 2026 guidance · UPS reported global group/segment perimeter, as identified in the source cell; not a European market total

Where is the expected peak improvement concentrated?

The Q4 plan calls for 10.5% domestic,20% International and 12.2% Supply Chain Solutions margins. Each has a different driver: resized U.S. capacity, profitable international lanes and surcharges, and premium logistics/forwarding demand. These mechanisms are more informative than treating the $100m annual upgrade as uniform improvement across the group.

Segment peak-margin assumptions
Measure	Value and unit	Period
Expected domestic adjusted operating margin · Q4 2026 management outlook	10.5 %	Q4 2026 management outlook
Expected International adjusted operating margin · Q4 2026 management outlook	20.0 %	Q4 2026 management outlook
Expected Supply Chain Solutions adjusted operating margin · Q4 2026 management outlook	12.2 %	Q4 2026 management outlook
Expected U.S. average-daily-volume change · Q4 2026 management outlook	-1.3 % year-on-year	Q4 2026 management outlook

Guidance, not outcomes. Differences in business mix and accounting make these margins unsuitable as a direct cross-segment efficiency ranking.

Exact value, inputs and sources

Previous adjusted operating-profit guidance · 8,650.0 USD million

FY 2026 guidance atQ2 · UPS reported global group/segment perimeter, as identified in the source cell; not a European market total

What must happen in the final quarter to deliver the raised annual target?

Q4 adjusted profit is expected to reach $3.3bn at an implied 12.8% group margin, versus 9.0% in Q3. That step includes seasonal volume and surcharges, plus the remaining $1.2bn programme benefits. The annual upgrade is modest; the full-year result still relies heavily on peak execution.

Required final-quarter profit and cost delivery
Measure	Value and unit	Period
Q4 adjusted operating-profit guidance · Q4 2026 guidance	3,300.0 USD million	Q4 2026 guidance
Implied Q4 adjusted operating margin · Q4 2026 guidance	12.8 %	Q4 2026 guidance
Current adjusted operating margin · Q3 2026	9.0 %	Q3 2026
Benefits required in Q4 to reach annual target · Q4 2026 implied	1,200.0 USD million	Q4 2026 implied

Q4 margin is calculated from revenue/profit guidance. Programme benefits are embedded in the outlook, not added on top.

Exact value, inputs and sources

Full-year adjusted free-cash-flow target · 6,100.0 USD million

FY 2026 guidance · UPS reported global group/segment perimeter, as identified in the source cell; not a European market total

How much financial flexibility does the cash-flow outlook provide?

Guided free cash flow exceeds planned dividends by $700m. The $450m pension contribution in bonds rather than cash is large relative to that remainder: a cash-funded equivalent leaves $250m. Driver Choice payments should cease after 2026, offering a future improvement, but the funding comparison shows why higher operating margins still matter.

Dividend coverage, pension funding and transitional cash costs
Measure	Value and unit	Period
Expected dividend payments · FY 2026 management outlook	5,400.0 USD million	FY 2026 management outlook
Pension contribution using UPS bonds · Q3 2026	450.0 USD million	Q3 2026
Guided free cash flow less expected dividends · FY 2026 guidance arithmetic	700.0 USD million	FY 2026 guidance arithmetic
Illustrative remainder if pension were cash-funded · FY 2026 funding illustration	250.0 USD million	FY 2026 funding illustration
Driver Choice cash expenditure · FY 2026 management statement	1,400.0 USD million	FY 2026 management statement

Illustration, not revised guidance or a 2027 cash forecast. Bond funding is a financing choice, not extra operating profit. Dividends remain subject to board approval.

Exact value, inputs and sources

SMB share of total U.S. volume · 35.1 %

Q3 2026 · UPS U.S. Domestic Package

Is the higher SMB share only a shrinking-denominator effect?

SMB daily volume itself grew 3.7%, while total daily volume declined. The 2.4 percentage-point share increase therefore combines actual SMB growth with the reduction in Amazon traffic. The Digital Access Program also brings a more premium mix: air and ground-commercial services are nearly 30% of its volume.

Absolute growth and the digital acquisition channel
Measure	Value and unit	Period
SMB average-daily-volume growth · Q3 2026	3.7 %	Q3 2026
Year-on-year increase in SMB share · Q3 2026	2.4 percentage points	Q3 2026
Global Digital Access Program revenue · Q3 2026	1,400.0 USD million	Q3 2026
Air services and ground-commercial share of DAP volume, nearly · Q3 2026	30.0 % of DAP volume	Q3 2026

DAP figures are global and do not isolate U.S. SMB profit. Share, growth and revenue are distinct measures.

Exact value, inputs and sources

Asia-to-Asia export-volume growth · 8.4 %

Q3 2026 · UPS International Package

How is UPS investing behind the stronger Asian lanes?

The Clark hub improves transit times on more than 1,100 lanes, connecting Asian markets with India, Europe and the U.S. It supports time-sensitive industrial and healthcare traffic alongside the existing 8.4% intra-Asia growth. The investment strengthens the service proposition that can sustain profitable-lane development, rather than simply adding undifferentiated parcel capacity.

Network reach, current margin and premium customer scale
Measure	Value and unit	Period
Trade lanes with improved transit times, more than · New Clark hub opened 15 October 2026	1,100.0 trade lanes	New Clark hub opened 15 October 2026
International adjusted operating margin · Q3 2026	14.9 %	Q3 2026
Healthcare revenue, more than · Q3 2026	3,000.0 USD million	Q3 2026

Healthcare revenue covers all UPS segments. The new hub opened after Q3; it did not cause the quarter’s recorded volume growth.

Exact value, inputs and sources

Healthcare revenue, more than · 3,000.0 USD million

Q3 2026 · UPS global group

How does healthcare connect the parcel and logistics businesses?

Amsterdam combines forwarding, customs and cold-chain services in one 129,000-square-foot facility. The network can serve customer requirements around a shipment as well as carrying the package itself. That is consistent with improving Supply Chain Solutions margin and the effort to grow premium parcel traffic, providing a practical route to larger customer relationships.

Integrated capability and current commercial indicators
Measure	Value and unit	Period
Amsterdam multifunctional facility area · Facility described 27 October 2026	129,000.0 square feet	Facility described 27 October 2026
Prior Supply Chain Solutions margin after identified property gain · Q3 2025	8.2 %	Q3 2025
Current Supply Chain Solutions adjusted operating margin · Q3 2026	9.2 %	Q3 2026
Air services and ground-commercial share of DAP volume, nearly · Q3 2026	30.0 % of DAP volume	Q3 2026

Healthcare revenue is global across all segments. These measures do not disclose a healthcare-only margin or prove that the new facility caused Q3 earnings growth.

Exact value, inputs and sources

Management estimate of data-centre logistics opportunity · 15,000.0 USD million

Market opportunity described 27 October 2026; no forecast period specified · Management-described data-centre logistics market opportunity

What evidence supports UPS’s data-centre opportunity today?

Management reports 30% growth in U.S. high-tech small-package business, explicitly from a small base, alongside 17.5% forwarding revenue growth. Those are early operating signals behind the opportunity. The service fit comes from combining freight, customs and parcel delivery for complex equipment flows; the $15bn estimate itself is not a revenue commitment.

Current technology signal and the broader delivery capability
Measure	Value and unit	Period
U.S. high-tech small-package business growth · Q3 2026	30.0 % year-on-year	Q3 2026
Forwarding revenue growth · Q3 2026	17.5 %	Q3 2026
Adjusted Supply Chain Solutions operating profit · Q3 2026	274.0 USD million	Q3 2026
Amsterdam multifunctional facility area · Facility described 27 October 2026	129,000.0 square feet	Facility described 27 October 2026

High-tech growth is not explicitly labelled revenue or volume in the call. Forwarding figures cover all customers, not data centres alone; the market estimate is not independently validated here.

Exact value, inputs and sources

Customer-originated RFID-labelled packages · 3.0 million packages/day

At 27 October 2026 call · UPS U.S. Domestic Package

What changes when labelling moves to the customer?

Origin labelling already operates at 315 customer sites and management plans to double daily package coverage from 3m to 6m in 2027. It removes handling steps and improves pickup visibility before the parcel enters the UPS network. That is a scalable productivity mechanism beyond the one-off removal of Amazon-related resources.

RFID deployment scale and the unit-cost challenge
Measure	Value and unit	Period
Customer locations with origin RFID labelling · At 27 October 2026 call	315.0 locations	At 27 October 2026 call
Planned customer-originated RFID-labelled packages · 2027 management plan	6.0 million packages/day	2027 management plan
Adjusted domestic cost-per-piece growth · Q3 2026	5.5 %	Q3 2026
Revenue-per-piece growth less adjusted cost-per-piece growth · Q3 2026	0.6 percentage points	Q3 2026

The target is management’s plan. No profit or labour-saving amount is inferred from package coverage, and the cost figures describe the whole domestic business.

Exact value, inputs and sources

Group profit growth on identified-item comparison · 14.0 %

Q3 2026 · UPS global group

Does Supply Chain Solutions still improve after the unusual items?

Prior adjusted Supply Chain Solutions profit falls from $536m to $206m when the $330m property gain is removed. Current adjusted profit is $274m, and margin rises from 8.2% to 9.2%. This means the group’s improvement is supported by Supply Chain Solutions operations as well as its two package divisions.

Supply Chain Solutions identified-item profit and margin comparison
Measure	Value and unit	Period
Prior-year adjusted Supply Chain Solutions operating profit · Q3 2025	536.0 USD million	Q3 2025
Prior-year Supply Chain Solutions sale-leaseback gain · Q3 2025	330.0 USD million	Q3 2025
Prior adjusted Supply Chain Solutions profit excluding identified gain · Q3 2025	206.0 USD million	Q3 2025
Adjusted Supply Chain Solutions operating profit · Q3 2026	274.0 USD million	Q3 2026
Prior Supply Chain Solutions margin after identified property gain · Q3 2025	8.2 %	Q3 2025
Current Supply Chain Solutions adjusted operating margin · Q3 2026	9.2 %	Q3 2026

Current adjusted result already excludes the impairment. The prior property gain is removed once.

Exact value, inputs and sources

Benefits required in Q4 to reach annual target · 1,200.0 USD million

Q4 2026 implied · UPS global group

Why can a lower-volume peak still be more profitable?

U.S. daily volume is expected to rise 25% sequentially but remain 1.3% below last year. Management says the smaller Amazon base reduces vehicle rentals, aircraft leases and rapid hiring, while the existing network handles the seasonal surge. The 10.5% domestic margin target rests on delivering that operating fit.

Peak volume shape and margin expectation
Measure	Value and unit	Period
Expected U.S. average-daily-volume increase · Q4 2026 management outlook	25.0 % versus Q3	Q4 2026 management outlook
Expected U.S. average-daily-volume change · Q4 2026 management outlook	-1.3 % year-on-year	Q4 2026 management outlook
Expected domestic adjusted operating margin · Q4 2026 management outlook	10.5 %	Q4 2026 management outlook

All Q4 figures are management expectations. Reduced rental needs are qualitative; no unreported saving is assigned.

Exact value, inputs and sources