$UPS · UNITED PARCEL SERVICE INC
UPS filed its Q3 FY2026 10-Q. Revenue grew 6.7% YoY to $22.85B, but net income fell to $1.163B from $1.311B and GAAP EPS dropped to $1.37 from $1.55. The decline reflects a $182M goodwill impairment on the HLD reporting unit plus higher purchased transportation (+33%) and fuel (+44.2%) costs. Adjusted EPS was $4.52. Operating margin was 7.6%.
- Revenue rose 6.7% YoY to $22.85B in Q3 FY2026.
- Net income fell to $1.163B from $1.311B a year earlier.
- GAAP EPS dropped to $1.37 from $1.55; adjusted EPS was $4.52.
- Recorded a $182M goodwill impairment on the HLD reporting unit.
- Purchased transportation costs jumped 33% and fuel costs 44.2% YoY.
Extended-hours last trade $113.90, down 0.35% vs the $114.30 regular close, despite a +4.70% regular-session gain. The modest after-hours dip suggests the impairment and EPS decline tempered enthusiasm.
UPS grew revenue but profitability fell on a goodwill impairment and surging input costs, a mixed signal for the parcel giant.
UPS's volume declines (U.S. domestic packages -3.3%, international -8.7%) contrast with revenue growth driven by pricing, a dynamic shared across parcel carriers facing soft demand.
The $182M HLD goodwill impairment signals the unit's fair value fell below carrying value, with $1.6B of goodwill still at risk. Rising fuel and purchased transportation costs are compressing margins.