Quarterly guidance

Consolidated Revenue
Approximately $25.7 billion, up approximately 5% year-over-year.
Consolidated Operating Profit
Approximately $3.3 billion.
U.S. Domestic Revenue
Up approximately 3% year-over-year with an operating margin of approximately 10.5%.
International Revenue
Up approximately 7% with an operating margin of approximately 20%.
Supply Chain Solutions Revenue
Up nearly 13% with an operating margin of approximately 12.2%.

Annual guidance

Consolidated Revenue
Approximately $92.6 billion.
Consolidated Operating Profit
Approximately $8.75 billion.
Free Cash Flow
Approximately $6.1 billion.
Capital Expenditures
Expected to be around $3 billion.
Dividends
Planning to pay out around $5.4 billion, subject to board approval.

Outlook

Holiday Demand
Industry forecasts project an average increase of approximately 9% in online retail sales, and UPS expects a 25% sequential increase in average daily volume from the third to the fourth quarter.
Pricing Environment
Management described the pricing environment as constructive and rational, expecting to maintain a 200 to 300 basis point spread between base rate pricing and mix improvement.
Margin Expansion
The company expects consistent margin improvement in the coming years, driven by a 50 to 100 basis point spread between revenue per piece and cost per piece growth.
Healthcare Logistics
The company sees significant growth opportunities in complex healthcare logistics, with projected growth rates around 6% per year.
Data Centers
Management identified a $15 billion logistics opportunity associated with data center growth.
RFID Implementation
The company plans to expand RFID labeling at customer locations to 6 million packages per day next year.
International Margins
Management expects international margins to remain in the mid-to-high teens range as trade lanes stabilize.