Shares of United Parcel Service Inc. were losing around 3 percent in the pre-market activity on the NYSE after the firm on Tuesday reported lower profit in its first quarter as revenues were hurt by weak performance in U.S. Domestic Segment and Supply Chain Solutions. Further, the company reaffirmed fiscal 2026 guidance.
Carol Tomé, UPS chief executive officer, stated, "The first quarter of 2026 marked a critical transition period for UPS in which we needed to flawlessly execute several major strategic actions and we delivered. With that behind us, we expect to return to consolidated revenue and operating profit growth, and adjusted operating margin expansion in the second quarter of this year."
Looking ahead for fiscal 2026, the company continues to expect adjusted operating margin of approximately 9.6 percent and consolidated revenue of approximately $89.7 billion.
The company is still planning capital expenditures of about $3.0 billion and dividend payments of around $5.4 billion, subject to board approval.
In the first quarter, the company's net income totaled $864 million or $1.02 per share, lower than $1.19 billion or $1.40 per share last year.
The latest results included after-tax transformation charges of $42 million or $0.05 per share.
Adjusted earnings were $906 million or $1.07 per share for the period, compared to $1.27 billion or $1.49 per share a year ago.
Operating profit declined to $1.27 billion from last year's $1.67 billion. Operating margin dropped to 6.0 percent from 7.7 percent in the prior year.
Adjusted operating profit fell to $1.32 billion from prior year's $1.76 billion. Adjusted operating margin declined to 6.2 percent from 8.2 percent a year ago.
The company's revenue for the period fell 1.6 percent to $21.202 billion from $21.546 billion last year.
U.S. Domestic Segment revenue declined 2.3 percent year-over-year to $14.13 billion, primarily driven by an expected decline in volume. Revenue per piece grew by 6.5 percent.
International Segment revenue increased 3.8 percent to $4.54 billion, driven by a 10.7 percent increase in revenue per piece.
Supply Chain Solutions revenue declined 6.5 percent, primarily due to a decline in volume in the Mail Innovations business.
In pre-market activity, the shares were losing around 3.2 percent, trading at $104.76.
For more earnings news, earnings calendar, and earnings for stocks, visit rttnews.com.
For comments and feedback contact: editorial@rttnews.com
Business News
April 24, 2026 15:15 ET Economics news flow was relatively light this week even as the conflict in the Middle East continued, raising concerns for policymakers. In the U.S., spending data, initial jobless claims and pending home sales were the highlights. Business confidence in the biggest euro area economy was in focus in Europe. Inflation data from Japan gained attention in Asia.