01:58 PM EDT, 10/28/2025 (MT Newswires) -- United Parcel Service ( UPS ) on Tuesday guided its fourth-quarter revenue above Wall Street's estimates, as the package delivery company's results for the preceding quarter topped market expectations.

The company expects revenue of $24 billion for the ongoing quarter, ahead of the FactSet-polled consensus of $23.82 billion. It reported $25.3 billion in revenue for the year-earlier quarter. United Parcel Service ( UPS ) anticipates operating margin of 11% to 11.5%.

For the September quarter, sales fell to $21.42 billion from $22.25 billion a year earlier, but surpassed analysts' $20.84 billion estimate. Non-GAAP earnings dropped to $1.74 per share from $1.76 a year ago, compared with the $1.29 consensus. Operating margin improved 110 basis points to 10%.

"We are executing the most significant strategic shift in our company's history, and the changes we are implementing are designed to deliver long-term value for all stakeholders," Chief Executive Carol Tome said in a statement. "With the holiday shipping season nearly upon us, we are positioned to run the most efficient peak in our history while providing industry-leading service to our customers for the eighth consecutive year."

UPS shares climbed 8% in Tuesday trading. The stock has fallen nearly 24% so far this year.

US revenue declined 2.6% due to softer volumes, while international sales increased 5.9%. Adjusted costs fell 2.7% in the domestic division amid reduced hours and operational positions.

The company aims to deliver "a strong peak season" operationally, driven by reduced seasonal hires and a scaled-back delivery fleet amid new automated systems, Tome said during an earnings call, according to a FactSet transcript.

UPS said it has realized $2.2 billion in cost savings this year through the end of September as it closed 93 buildings and slashed its workforce by 34,000 jobs. The company expects to generate $3.5 billion in full-year cost savings as part of efforts to streamline its domestic network.

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