UPS Tops Q3 Estimates; Shares Rally

United Parcel Service reported stronger-than-expected third-quarter 2025 results, with adjusted EPS of $1.74 versus a $1.30 consensus and consolidated revenue of $21.41 billion, topping estimates. UPS said it is leaning on price increases, cost cuts and a focus on higher‑margin shipments — including reducing some Amazon volume — to rebuild margins after a year of tariff-related volume weakness and the end of de minimis exemptions. The quarter benefited in part from a sale‑leaseback that added about $0.30 to EPS, and the company forecast roughly $24 billion of revenue for the fourth quarter and an adjusted operating margin of about 11.0%–11.5%. The profit beat and upbeat Q4 guidance sent UPS shares sharply higher in premarket trading (reports of roughly 7%–19% gains) and lifted rival FedEx shares, though UPS stock remained about 28%–29% below its year‑start level. Management said the guidance eased investor uncertainty ahead of the critical holiday season, when daily volumes can double.