United Parcel Service (NYSE: UPS) has struggled with growth in a challenging environment, but the worst is behind the company, and the outlook is rapidly improving. The fiscal Q3 2025 earnings report included news that every investor wanted to hear, whether or not they are exposed to the stock; the holiday quarter will be better than expected. This means increased package volume in the crucial holiday season, packages that equate to retail sales and economic activity that is not priced into transportation stocks.
The takeaway for UPS investors is that, in addition to Q3 strength, its lean into operational quality is also paying off, positioning it for a leveraged earnings rebound in 2026.
