UPS reported third-quarter results that exceeded Wall Street expectations, both in earnings per share and revenue. The company posted adjusted earnings of $1.69 per share, above the anticipated $1.63, with revenue reaching $22.9 billion compared to the forecasted $22.29 billion. Despite a slight decline in net income to $1.16 billion from $1.31 billion a year earlier, the revenue climbed 6.7% year-over-year, driven by gains across its domestic, international, and supply chain solutions segments.

The domestic business saw a 4.5% increase in revenue, while the international segment grew by 7.1%. Notably, UPS’s supply chain solutions division experienced an 18.2% revenue boost, reflecting strong growth in forwarding and logistics services, particularly in healthcare. For the third consecutive quarter, healthcare revenue surpassed $3 billion, underscoring the significance of this sector to UPS’s growth strategy.

CEO Carol Tomé highlighted the company’s efforts to enhance revenue quality and improve operational efficiency through automation and a leaner business model. She noted that even with expected seasonal declines and a volume downturn related to Amazon, UPS continues to strengthen its underlying business fundamentals. Looking ahead to the holiday season, Tomé anticipates stable growth in average daily volume, with nearly 70% of packages processed through automated systems to support peak demand.

Reflecting continued confidence, UPS raised its full-year guidance for consolidated revenue to approximately $92.6 billion, up from the prior outlook of $91.2 billion. The company also projects fourth-quarter revenue to hit $25.7 billion. Shares of UPS saw a modest increase in morning trading following the earnings announcement, as investors responded positively to the stronger performance and optimistic outlook.