United Parcel Service Inc (NYSE:UPS) shares jumped 8% following the company’s third quarter 2025 earnings report, which topped analyst expectations and highlighted strategic moves to boost profitability.
UPS reported revenues of $21.4 billion for the quarter, above estimates of $20.9 billion, with an operating profit of $1.8 billion.
Revenue grew 5.9%, fueled by a 4.8% rise in average daily volume.
Adjusted EPS reached $1.74, beating analyst estimates of $1.31 per share.
The company’s results included a net charge of $164 million, or $0.19 per diluted share, largely from after-tax transformation strategy costs, partially offset by an $86 million tax benefit.
UPS also completed a sale-leaseback of five properties, generating a $330 million pre-tax gain that contributed $0.30 to EPS.
Looking ahead, UPS expects Q4 revenue of around $24 billion and an operating margin of 11% to 11.5%.
“We are executing the most significant strategic shift in our company’s history, and the changes we are implementing are designed to deliver long-term value for all stakeholders,” CEO Carol Tomé said in a statement.
“With the holiday shipping season nearly upon us, we are positioned to run the most efficient peak in our history while providing industry-leading service to our customers for the eighth consecutive year.”