Top 5 takeaways from UPS’s Q3 2025 earnings announcement

UPS reported Q3 earnings on October 28, with CEO Carol Tomé emphasizing two major shifts the company will leverage for growth. Carol said UPS is helping customers navigate the “most profound shift in trade policy in a century,” while also executing the “most significant strategic shift in our company’s history.”

On both fronts, UPS views this moment of disruption as an opportunity. Given the company’s global integrated network, it remains well positioned to remove friction for customers and solve their end-to-end logistics needs.

To better understand UPS’s overarching strategy for long-term growth, here are the top five takeaways from UPS’s Q3 earnings report.

1) UPS remains laser focused on executing its strategy

In the face of global macro challenges, UPS is demonstrating resilience while shifting its business, capturing high-value parts of the market and onboarding customers with end-to-end logistics needs.

As CFO Brian Dykes said during the earnings call, “We continued to improve the mix of volume in our network … and the team did an excellent job managing expense throughout the quarter, resulting in an improvement in U.S. domestic operating margin.”

2) UPS absorbs complexity for customers to keep supply chains and commerce flowing

Following the elimination of the de minimis exemption for U.S. imports, UPS experienced a tenfold surge in daily customs entries.

In response, the company quickly updated shipping systems and leveraged its world-class team and AI advances to solve the most pressing customer needs.

This is UPS’s domain: Remember that with over 80 years of experience and 400-plus import and export clearance locations, UPS is one of the world's largest customs brokers.

3) UPS advances strategic focus on end-to-end solutions

How does UPS win both today and tomorrow? By targeting customers who need a global, integrated network to solve their end-to-end logistics needs.

That’s why UPS is leaning into Healthcare, SMB, B2B and International to power future growth. UPS’s end-to-end portfolio empowers businesses of all sizes to scale efficiently and stay agile in a rapidly evolving marketplace.

Adding to its healthcare portfolio, earlier this year UPS entered into a definitive agreement to acquire Andlauer Healthcare Group Inc., which will enhance the company’s cold chain and pharmaceutical transportation capabilities in Canadian and U.S. markets.

The company expects to close the acquisition in early November, Carol said.

4) UPS is ready to deliver another successful peak

UPS is positioned to run the most efficient peak in company history while providing industry-leading service to customers for the eighth consecutive year.

Whether you’re looking for fast, reliable shipping or industry-leading tools and technology solutions, UPS – and subsidiaries such as Happy Returns, Roadie and The UPS Store – can help grow your business.

5) Amazon glide down and network reconfiguration on track

As planned, UPS is accelerating the glide down of Amazon volume and U.S. network reconfiguration, while deploying additional automation through its Network of the Future initiative.

That strategy is paying off, as Carol and Brian outlined strong expense control and revenue-per-piece improvement  that helped deliver U.S. operating margin expansion in the third quarter year-over-year. At the same time, UPS is on track to achieve its 2025 expense reduction target of approximately $3.5 billion.

Finally, Carol shared that UPS recently reached a preliminary understanding on revenue and rates with the United States Postal Service to support last-mile delivery for our Ground Saver Product.

“There is still more work to do,” Carol said, “but we are confident we will come to an agreement that ensures our service levels will remain best in class.”