UPS projects $92.6 billion in annual revenue after strong quarter

United Parcel Service raised its full-year revenue target to approximately $92.6 billion on Tuesday. The company previously projected $91.2 billion for the year. UPS also set a specific forecast of $25.7 billion for the fourth quarter.

The shipping giant beat Wall Street estimates for the third quarter, which ended on September 30. LSEG analyst surveys show that UPS delivered $1.69 in adjusted earnings per share, surpassing the $1.63 expected. Revenue reached $22.9 billion, exceeding the $22.29 billion forecast by analysts.

Net income for the period was $1.16 billion, or $1.37 per share. This represents a slight decline from the $1.31 billion, or $1.55 per share, reported in the same quarter last year. Adjusted figures excluded one-time expenses.

Growth varied across business units. The domestic segment saw revenue rise by 4.5%. The international segment recorded a 7.1% increase. Supply chain solutions drove the strongest performance with an 18.2% revenue jump. The company attributed this growth to expansion in forwarding, logistics, and healthcare sectors.

UPS had earlier anticipated flat domestic revenue and lower daily volumes due to seasonal trends and its reduced relationship with Amazon. CEO Carol Tomé stated that the company is entering the holiday season from a position of strength. She described the network as the most automated and efficient in the company's history.

Shares of UPS rose slightly in premarket trading following the announcement. The guidance increase follows a similar revision made last quarter. Tomé has led a turnaround effort focused on a leaner business model and increased automation.