United Parcel Service (UPS) reported first-quarter results that exceeded Wall Street expectations on both earnings per share and revenue. For the quarter ended March 31, UPS posted consolidated revenues of $21.2 billion, surpassing the analyst consensus of $20.99 billion. Adjusted earnings per share came in at $1.07, ahead of the expected $1.02. Net income for the quarter was $864 million, or $1.02 per share, compared to $1.19 billion, or $1.40 per share, in the same period last year. On an adjusted basis, profit was $906 million, or $1.07 per share [1].
Despite the earnings beat, UPS shares fell approximately 3% in premarket trading. The company reaffirmed its full-year 2026 guidance, maintaining its consolidated financial estimate of $89.7 billion in revenue and a non-GAAP adjusted operating margin of 9.6%. CEO Carol Tomé described the first quarter of 2026 as a 'critical transition period' for the company, highlighting the execution of major strategic actions. Tomé stated that with these actions completed, UPS expects to return to consolidated revenue and operating profit growth, as well as adjusted operating margin expansion in the second quarter of the year [1].
In its domestic segment, UPS reported a 2.3% decline in revenue, primarily attributed to an expected decrease in volume. The company is actively pursuing a turnaround plan, focusing on enhancing automation within its network. During the first quarter, UPS achieved $600 million in cost savings through its network efficiency program and anticipates reaching $3 billion in year-over-year savings in 2026 [1].
Company executives are scheduled to hold a conference call at 8:30 a.m. ET to discuss the results further [1].
CONCLUSION
UPS delivered first-quarter results that beat analyst expectations and reaffirmed its 2026 financial guidance, despite a decline in domestic revenue and a negative market reaction. The company's ongoing cost-saving initiatives and strategic actions are expected to drive growth and margin expansion in the coming quarters.