UPS Revenue: Supply Chain Growth Drives $92.6 Billion Forecast

United Parcel Service now projects full-year consolidated revenue of approximately $92.6 billion, a jump from its previous estimate of $91.2 billion. The company raised its outlook on Tuesday after reporting third-quarter results that exceeded analyst forecasts.

UPS had already increased its guidance in the prior quarter. The new projection includes fourth-quarter revenue of $25.7 billion. For the quarter ending Sept. 30, the firm reported net income of $1.16 billion, or $1.37 per share. This figure was slightly lower than the $1.31 billion, or $1.55 per share, recorded in the same period a year ago.

After adjusting for one-time expenses, UPS reported earnings per share of $1.69. This amount surpassed the $1.63 expected by analysts in an LSEG survey. Total revenue for the quarter reached $22.9 billion, beating the $22.29 billion consensus estimate.

Segment performance varied significantly across the business. Domestic revenue rose 4.5%, while international revenue increased 7.1%. The supply chain solutions division led growth with an 18.2% revenue increase. The company attributed this surge primarily to expansion in forwarding and logistics, including healthcare services.

Management had previously anticipated flat domestic revenue and lower average daily volumes due to seasonal factors and the gradual reduction of volume from Amazon. Despite those earlier expectations, CEO Carol Tomé stated that the company is entering the holiday shipping season from a position of strength. She noted that UPS now operates the most automated and efficient network in its history.

The firm has focused on a leaner business model and automation under Tomé’s leadership. Shares of the company rose slightly in premarket trading following the announcement.