United Parcel Service Inc ( UPS ) shares are rising in extended trading on Thursday in sympathy with FedEx Corp ( FDX ) , which reported better-than-expected earnings after the market close.

UPS stock is racing ahead of the pack. Watch the momentum here.

What Happened With FDX: FedEx ( FDX ) beat analyst estimates on the top and bottom lines in the first quarter, reporting revenue of $22.2 billion versus estimates of $21.67 billion, and adjusted earnings per share of $3.83 versus estimates of $3.62.

FedEx ( FDX ) guided for fiscal 2026 revenue growth of 4% to 6% year-over-year. The company also said it continues to expect permanent cost reductions of $1 billion this year.

FedEx ( FDX ) repurchased $500 million of its common stock during the quarter and ended the period with approximately $6.2 billion of cash on hand.

“Looking ahead, we are prepared to navigate a range of scenarios,” said John Dietrich, executive vice president and CFO of FedEx ( FDX ).

Why It Matters For UPS: FedEx ( FDX ) and UPS are two of the largest parcel delivery companies in the world, and directly compete in the space.

Positive results for FedEx ( FDX ) is driving investors to bid up shares of UPS in anticipation of its earnings report next month. UPS is scheduled to report its quarterly results on Oct. 23. Analysts currently expect the company to report earnings of $1.34 per share and revenue of $20.92 billion, per Benzinga Pro estimates.

Last quarter, UPS shares traded lower on earnings as the company withheld its full-year guidance, citing “macro-economic uncertainty.”

UPS Price Action: UPS shares were up 2.76% in after-hours, trading at $85.05 at the time of publication on Thursday, according to Benzinga Pro. FedEx ( FDX ) shares were up about 6.84% after hours at last check.

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