UNITED PARCEL SERVICE INC
For the period ended Sep 30, 2026. Filed Nov 4, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2026 · Filed Nov 4, 2026
Extracted filing text, with the paragraph anchors used by the comparison.
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Supply Chain Solutions Operations ("SCS")
SCS
| Three Months Ended September 30, · Change · Nine Months Ended September 30, · Change | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2026 · 2025 · $ · % · 2026 · 2025 · $ · % | |||||||||||||
| Revenue (in millions): | |||||||||||||
| Forwarding | $858 | $730 | $128 | 17.5% | $2,305 | $2,188 | $117 | 5.3% | |||||
| Logistics | 1,598 | 1,363 | 235 | 17.2% | 4,547 | 4,411 | 136 | 3.1% | |||||
| Other SCS | 525 | 429 | 96 | 22.4% | 1,526 | 1,289 | 237 | 18.4% | |||||
| Total Revenue | $2,981 | $2,522 | $459 | 18.2% | $8,378 | $7,888 | $490 | 6.2% | |||||
| Operating Expenses (in millions): | |||||||||||||
| Operating Expenses | $2,889 | $1,997 | $892 | 44.7% | $7,790 | $7,083 | $707 | 10.0% | |||||
| Non-GAAP Adjustments to Operating Expenses | |||||||||||||
| Transformation Strategy Costs | — | (11) | 11 | (100.0)% | (1) | (22) | 21 | (95.5)% | |||||
| Net Loss on Divestiture | — | — | — | N/A | — | (19) | 19 | (100.0)% | |||||
| Goodwill and Asset Impairment Charges | (182) | — | (182) | N/A | (182) | — | (182) | N/A | |||||
| Non-GAAP Adjusted Operating Expenses | $2,707 | $1,986 | $721 | 36.3% | $7,607 | $7,042 | $565 | 8.0% | |||||
| Operating Profit (in millions) and Operating Margin: | |||||||||||||
| Operating Profit | $92 | $525 | $(433) | (82.5)% | $588 | $805 | $(217) | (27.0)% | |||||
| Non-GAAP Adjusted Operating Profit | $274 | $536 | $(262) | (48.9)% | $771 | $846 | $(75) | (8.9)% | |||||
| Operating Margin | 3.1% | 20.8% | 7.0% | 10.2% | |||||||||
| Non-GAAP Adjusted Operating Margin | 9.2% | 21.3% | 9.2% | 10.7% | |||||||||
| Currency Benefit / (Cost) – (in millions)(1): | |||||||||||||
| Revenue | $30 | $110 | |||||||||||
| Operating Expenses | (28) | (106) | |||||||||||
| Operating Profit | $2 | $4 | |||||||||||
| (1) Amount represents the change in currency translation compared to the prior year. | |||||||||||||
Revenue
Total revenue in Supply Chain Solutions increased for the quarter and year-to-date periods.
Within our Forwarding businesses, revenue increased $128 million for the quarter (up $117 million year to date) driven by higher international air freight rates.
Within our Logistics businesses, revenue increased $235 million for the quarter (up $136 million year to date). This was primarily due to an increase of $224 million for the quarter (up $643 million year to date) within our healthcare logistics business as a result of our fourth quarter 2025 acquisition of AHG, as well as higher volume driven by additional healthcare logistics customer demand. On a year-to-date basis, these increases were partially offset by a decline in Mail Innovations revenue of $572 million.
Revenue from our other businesses within SCS increased $96 million for the quarter (up $237 million year to date), primarily driven by growth within our digital businesses.
Total operating expenses increased for the quarter and year-to-date periods due to impacts from the acquisition of AHG, higher healthcare logistics volume due to customer demand, higher market rates charged for third-party Forwarding transportation, the 2025 periods' $330 million gain from sale-leaseback transactions involving real estate that did not recur, as well as a $182 million goodwill impairment charge within our HLD reporting unit. On a year-to-date basis, these increases were partially offset by lower Mail Innovations expenses resulting from volume declines.
Non-GAAP adjusted operating expenses exclude transformation strategy costs related to our Transformation 2.0, Fit to Serve, and Network Reconfigurationand Efficiency Reimagined initiatives of $0 and $11 million in the third quarters of 2026 and 2025, respectively, and $1 and $22 million in the 2026 and 2025 year-to-date periods, respectively. Within Transformation 2.0, we incurred costs related to financial system investments in both the quarter and year-to-date periods of 2025. Within Fit to Serve, we incurred severance costs in 2025. Within Network Reconfiguration and Efficiency Reimagined, we incurred costs related to end-to-end process redesign during the year-to-date 2026 period and both the quarter and year-to-date periods of 2025. Additionally, non-GAAP adjusted operating expense for the quarter and year-to-date 2026 periods excludes the $182 million goodwill impairment charge associated with our HLD reporting unit. Non-GAAP adjusted operating expense for the 2025 year-to-date period also excluded the impact of a divestiture of a business within SCS. See Supplemental Information - Items Affecting Comparability for additional discussion of items excluded from our non-GAAP adjusted financial measures.
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