United Parcel Service, Inc. Just Beat EPS By 21%: Here's What Analysts Think Will Happen Next

United Parcel Service, Inc. (NYSE:UPS) just released its quarterly report and things are looking bullish. It was overall a positive result, with revenues beating expectations by 2.8% to hit US$21b. United Parcel Service also reported a statutory profit of US$1.55, which was an impressive 21% above what the analysts had forecast. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Following last week's earnings report, United Parcel Service's 27 analysts are forecasting 2026 revenues to be US$88.1b, approximately in line with the last 12 months. Statutory earnings per share are predicted to rise 9.6% to US$7.11. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$87.7b and earnings per share (EPS) of US$7.05 in 2026. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

See our latest analysis for United Parcel Service

There were no changes to revenue or earnings estimates or the price target of US$103, suggesting that the company has met expectations in its recent result. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic United Parcel Service analyst has a price target of US$122 per share, while the most pessimistic values it at US$75.00. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. One more thing stood out to us about these estimates, and it's the idea that United Parcel Service's decline is expected to accelerate, with revenues forecast to fall at an annualised rate of 1.2% to the end of 2026. This tops off a historical decline of 0.004% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 3.3% per year. So it's pretty clear that, while it does have declining revenues, the analysts also expect United Parcel Service to suffer worse than the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at US$103, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for United Parcel Service going out to 2027, and you can see them free on our platform here.

Plus, you should also learn about the 2 warning signs we've spotted with United Parcel Service (including 1 which is a bit concerning) .

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.