UPS Third-Quarter Performance
United Parcel Service (NYSE: UPS) reported its Q3 earnings on October 28, 2025, with revenue of $21.4 billion, exceeding Wall Street’s estimate of $20.8 billion. Despite a 2.6% year-over-year decline in revenue, adjusted earnings per share came in at $1.74, surpassing the expected $1.30.
The company has reduced its workforce by 34,000 employees through the first nine months of 2025, more than the previously anticipated 20,000. Additionally, UPS entered a preliminary agreement with the U.S. Postal Service to share logistics responsibilities, marking a significant operational shift. Following this positive news, UPS shares have increased by approximately 17% since early October.
However, uncertainties remain, including the potential impacts from tariffs and a strategic decision to cut shipment volumes with Amazon (NASDAQ: AMZN). UPS paid $4 billion in dividends in 2025, against $2.7 billion in free cash flow, raising concerns about dividend sustainability.
