UPS · 10-Q · 2026Q3 · Full report

Operating Expense Trends

UNITED PARCEL SERVICE INC · 2026-11-04 · Importance 41 · Surprise 14

Consolidated operating expenses rose 7.6% to $21.109 billion in the quarter and 6.9% to $62.948 billion year to date; adjusted operating expenses increased 7.9% and 5.1%, respectively. Purchased transportation increased $812 million in the quarter and $1.5 billion year to date, including higher USPS Ground Saver fees, leased aircraft and charter costs, and fuel surcharges. Fuel expense increased $473 million in the quarter and $1.1 billion year to date because of higher jet fuel, diesel, and gasoline prices, partly offset by lower volume. Other expenses rose $455 million in the quarter, reflecting $182 million of HLD goodwill impairment and the nonrecurrence of sale-leaseback gains, partly offset by aircraft-part and real-estate sale gains.

Key facts

• UPS operating expenses increased 7.6% to $21.109 billion in the third quarter of 2026 and 6.9% to $62.948 billion in the first nine months of 2026. source
• UPS SCS operating expenses increased in both periods due to AHG, healthcare logistics demand, higher third-party Forwarding rates, nonrecurrence of a $330 million 2025 sale-leaseback gain and a $182 million HLD goodwill impairment charge. source
• UPS U.S. Domestic facility and transportation costs increased $661 million in the third quarter and $1.8 billion year to date, primarily from USPS Ground Saver fees, fuel costs and third-party aircraft leases. source
• UPS other expenses increased $455 million in the third quarter and $615 million year to date, partly due to a $304 million third-quarter decrease in gains, the HLD goodwill impairment charge and other specified cost changes. source
• UPS purchased transportation expense increased $812 million in the third quarter and $1.5 billion year to date. source
• UPS fuel expense increased $473 million in the third quarter and $1.1 billion year to date, mainly from higher jet fuel, diesel and gasoline prices, partly offset by lower volume. source
• UPS U.S. Domestic compensation and benefits expense decreased $336 million in the third quarter and increased $136 million year to date. source
• UPS International operating expenses increased $264 million in the third quarter and $1.1 billion year to date, including unfavorable year-to-date currency impacts. source