UPS reports $21.2 billion revenue in Q1 2026, reaffirms outlook
US domestic volumes declined, while international growth and higher yield per piece supported margins and cash flow
United Parcel Service reported consolidated revenue of $21.2 billion for the first quarter of 2026, with operating profit of $1.27 billion and diluted earnings per share of $1.02. On an adjusted basis, operating profit was $1.32 billion and diluted earnings per share stood at $1.07.
The company recorded a consolidated operating margin of 6%, while adjusted operating margin was 6.2%. UPS stated that its GAAP results for the quarter included after-tax transformation and other charges of $42 million, or $0.05 per diluted share.
Within its US Domestic Segment, revenue totalled $14.3 billion. Average daily volume declined by 3.5%, while revenue per piece increased by 2.5%. Operating profit for the segment was $879 million, with an operating margin of 6.1%.
In the International Segment, revenue stood at $4.4 billion. Average daily volume rose by 2.7%, and revenue per piece increased by 1.5%. Operating profit reached $641 million, with an operating margin of 14.5%.
For the Supply Chain Solutions segment, revenue was reported at $2.5 billion. The segment posted an operating profit of $121 million, with an operating margin of 4.8%.
UPS highlighted that cash from operations for the quarter was $2.6 billion, while free cash flow amounted to $1.7 billion. The company returned $1.4 billion to shareholders through dividends and share repurchases.
The company reaffirmed its full-year 2026 guidance and said it remains focused on executing its strategy to improve profitability and efficiency across its network.
