UPS Earnings Q3 2025

Combined Package Service On Tuesday, it reported earnings topping Wall Street forecasts ahead of the busy holiday season and revealed deeper layoffs as part of a sweeping turnaround plan.

The company said Tuesday it is cutting its operational workforce by 34,000 jobs this year, above its previous estimate of a 20,000 reduction. The company also cut 14,000 jobs from its management workforce.

UPS said in a statement to CNBC that these outages have already occurred.

Shares of the package delivery giant rose 8% on Tuesday.

Here’s how the company performed in the third quarter compared to Wall Street expectations, according to a survey of analysts conducted by LSEG:

• Earnings per share: Adjusted $1.74, expected $1.30
• Revenues: 21.4 billion dollars, while the expectation was 20.83 billion dollars

For the period ended Sept. 30, the company reported net income of $1.31 billion, or $1.55 per share, compared to $1.99 billion, or $1.80 per share, in the prior year. Adjusting for one-time items, including the costs of its transformation strategy, the company reported profit of $1.48 billion, or $1.74 per share. Revenue fell to $21.4 billion.

UPS estimates fourth-quarter revenue will be $24 billion with operating margins of 11% to 11.5%.

Most workforce reductions are due to job reductions. Amazonwas previously its largest customer.

Amazon’s total volume with UPS in the third quarter fell 21.2%, compared with a 13% decline in the first half of the year, executives said.

UPS also initiated a sale-leaseback transaction for five properties in the third quarter as part of its broader strategy, resulting in $330 million of what the company described as pre-tax gains from the sale in its supply chain solutions division. As part of the initiative, day-to-day operations at 93 leased and owned buildings were shut down through September, the statement said Tuesday.

UPS said its turnaround plan saved $2.2 billion by the end of the third quarter and forecast total year-over-year cost savings of $3.5 billion in 2025.

“We are undertaking the most significant strategic shift in our company’s history, and the changes we are implementing are designed to deliver long-term value to all stakeholders,” said CEO Carol Tomé. “With the holiday shipping season approaching, we are positioned to deliver the most productive peak in our history while providing industry-leading service to our customers for the eighth year in a row.”

Courier’s strong results come as the parcel industry faces a volatile tariff environment and sluggish demand, with additional impacts from the end of the de minimis gap. Rival Fedex It said it incurred $150 million in losses last month due to headwinds from the global trade environment.

“The third quarter brought a wave of tariff changes, some expected, some unforeseen, and our team navigated these complexities with extraordinary skill and resilience,” Tomé said on the call. said Tomé, adding that the company has incorporated artificial intelligence into its daily operations to adapt to the increase in customs entries.