Atlanta, April 28, 2026, 07:04 EDT
UPS topped analyst forecasts for both profit and revenue in the first quarter, reporting $21.2 billion in sales and $1.27 billion in operating profit. Adjusted earnings landed at $1.07 per share. The Atlanta-based delivery giant is navigating a network revamp and trimming less-profitable Amazon shipments, but Tuesday’s results offered some breathing room.
The quarter was expected to be choppy, so the print drew attention. UPS is dialing back its Amazon business—the top customer—while leaning on cost trims, more automation, and moving toward pricier, higher-margin packages. Shares slipped 3% premarket after adjusted profit fell 28% year-on-year, according to Reuters.
Adjusted profit landed above the Bloomberg-quoted analyst consensus of $1.03 per share, and revenue also beat expectations at $20.97 billion. The adjusted, or non-GAAP, numbers strip out specific items like transformation charges; UPS reported that its first-quarter GAAP results reflected $42 million after tax for those costs, or 5 cents per share.
UPS CEO Carol Tomé described this stretch as a “critical transition period,” noting the company had pushed through “several major strategic actions.” Looking ahead, Tomé said UPS anticipates growth in both revenue and operating profit, alongside improved adjusted margins, in the second quarter. United Parcel Service, Inc.
UPS stuck to its 2026 goals, leaving the revenue target at roughly $89.7 billion and aiming for an adjusted operating margin near 9.6%. That margin shows what’s left from revenue after taking out operating costs. Capital spending plans stay at $3.0 billion, and the company is still aiming to pay about $5.4 billion in dividends, pending board signoff.
Core U.S. operations continued to lag. Domestic revenue slid 2.3% to $14.13 billion—volume was down, even as each shipment brought in 6.5% more on average. Adjusted domestic operating margin took a hit, falling to 4.0% from 7.0% a year ago, evidence that network pressure hasn’t eased much despite better pricing.
International revenue edged up 3.8% to $4.54 billion as revenue per piece jumped 10.7%. Still, adjusted international operating profit slipped. Supply Chain Solutions revenue slid 6.5% on weaker Mail Innovations volume, but operating profit for that unit rebounded significantly from last year’s lows.
Competition is tight. UPS and FedEx are slashing expenses and ramping up automation in their sorting centers, pulling back from low-margin home deliveries. Their focus has shifted—now, they’re after higher-yield shipments like temperature-controlled healthcare freight and urgent corporate cargo.
The recovery plan faces a tight timeline. Should UPS see package density slipping away before it can swap in higher-margin business, the second-quarter rebound they’ve flagged may fall short. Ongoing trade-policy shifts aren’t helping either, with the end of “de minimis”—a key customs exemption that let low-value e-commerce goods enter the U.S. without duty—still dragging on performance. United Parcel Service, Inc.
Stifel’s J. Bruce Chan stuck with his Buy call on UPS heading into the results, though he nudged the target down to $114 from $116. Before the numbers, Chan called UPS “at a critical point in its multi-year transformation.” He also flagged that the coming figures would probably show a purposeful network reset, not just weaker demand. Insider Monkey
UPS delivered a beat on Tuesday, but that’s just a breather, not a final answer. Management says growth is back on deck starting in the second quarter. Now, the real question: does the Amazon pullback keep dragging down volumes, or does it start looking like the margin reset they’ve been pitching?
