UPS · 10-Q · 2026Q3 · Full report
Operating Margin Drivers
UNITED PARCEL SERVICE INC · 2026-11-04 · Importance 47 · Surprise 48 · In source text
Consolidated operating profit declined $60 million, or 3.3%, to $1.744 billion in the third quarter and $1.351 billion, or 25.5%, to $3.941 billion year to date. Operating margin fell 80 basis points to 7.6% for the quarter and 230 basis points to 5.9% year to date. Higher purchased transportation, fuel, aircraft leasing, and separation costs, together with a $182 million HLD goodwill impairment and the absence of prior-year sale-leaseback gains, weighed on results; Network Reconfiguration and Efficiency Reimagined savings and asset-sale gains partly offset these costs.
Key facts
- UPS operating profit decreased 3.3% to $1.744 billion in the third quarter of 2026 and 25.5% to $3.941 billion in the first nine months of 2026. source
- UPS operating margin was 7.6% in the third quarter of 2026 and 5.9% in the first nine months of 2026, down 80 and 230 basis points, respectively. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| operating_income | negative | realized | -5.9% | UPS operating profit decreased 3.3% to $1.744 billion in the third quarter of 2026 and 25.5% to $3.941 billion in the first nine months of… |