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United Parcel Service’s $3 Billion Transformation: Can UPS Finally Fix Its Margins?

United Parcel Service Inc. reported third-quarter 2026 consolidated revenue of $22.9 billion, marking a 6.7% increase year-over-year with growth observed across all business segments. Operating profit on a GAAP basis was $1.7 billion, while non-GAAP adjusted operating profit reached $2.1 billion. Diluted earnings per share stood at $1.37 on a GAAP basis and $1.69 when adjusted for non-GAAP items. The quarter’s GAAP earnings incorporated a net charge of $279 million related to transformation strategy costs and goodwill impairment in Supply Chain Solutions, partially offset by gains from asset sales. Segment performance showed mixed results. The U.S. Domestic segment’s revenue grew 4.5%, led by a 6.1% increase in revenue per piece, but its GAAP operating profit declined compared to the prior year, resulting in a 6.1% operating margin down from 7.0% on a non-GAAP adjusted basis. The International segment posted 7.