UPS Shares Gain Momentum After FedEx Results and Strategic Shift

UPS shares climbed in extended trading Thursday after peer FedEx’s strong earnings and confirmed the company’s strategic realignment, setting the tone ahead of UPS’s own results.

Market Rally Fueled by FedEx Beat Investor optimism spiked when FedEx reported better-than-expected revenue of $22.2 billion and adjusted EPS of $3.83, versus estimates of $21.67 billion and $3.62, respectively. UPS shares rose 2.76% in after-hours trading to $85.05, mirroring FedEx’s post-market 6.84% surge.

Nut Graf The uptick underlines how FedEx’s performance influences the parcel-delivery sector and investor sentiment. With UPS set to report Q3 earnings on Oct. 23, traders are parsing peer results and strategic developments to gauge UPS’s outlook.

After-Hours Trading Highlights

• Extended trading price: $85.05, +2.76%
• Regular close (Sep 18): $84.67, −0.48%
• Volume surge reflects heightened pre-earnings positioning

Estafeta Acquisition Abandoned

UPS terminated its planned acquisition of Mexico’s Estafeta on Sep. 18 after key closing conditions went unmet. The deal collapse underscores UPS’s caution amid regulatory and integration risks in international expansion.

Sector Dynamics and Investor Focus

UPS’s shares remain down nearly 30% YTD, despite a 7.8% dividend yield. Market headwinds-tariff uncertainty, slowing e-commerce volumes and aggressive cost-cutting-have pressured valuation. Investors now await UPS’s Q3 guidance for signs of free-cash-flow recovery and turnaround progress.

What’s Next

Analysts expect UPS to report EPS of $1.34 on revenue of $20.92 billion next quarter. FedEx’s beat and UPS’s strategic pause on acquisitions frame the main catalysts driving UPS stock into its upcoming earnings season.